The TN VED code is the basic category of customs, on which the following depends:
the size of the rates of customs duties and taxes;
prohibitions and restrictions;
benefits and preferences.
Declaring an incorrect TN VED code of goods during customs declaration may entail not only a delay in the release of goods and related costs, but also a change in the rates of customs payments, a request for additional permits, a refusal to provide benefits and preferences, the involvement of a participant in foreign economic activity (customs representative) to administrative or even criminal liability. That is why it is fundamentally important to correctly classify goods in accordance with the Foreign Economic Activity Commodity Classification.
It should be noted that the current customs legislation provides for the right of a participant in foreign economic activity, in case of doubt about the correctness of the definition of the TN VED code, to apply to the customs authorities to make a PRELIMINARY DECISION ON THE CLASSIFICATION OF GOODS (hereinafter - PR) - a document of the established form mandatory for use by customs authorities.
It would seem that from the point of view of the Law, a foreign economic activity participant can issue a PR and within 5 years forget about all the problems associated with the classification of goods. But law enforcement practice and current legislation provide for a number of nuances.
The customs authority has the right to both withdraw the PR and terminate it.
The PR shall be TERMINATED in cases where:
1) the customs authority has established that the applicant submitted documents containing inaccurate and (or) incomplete information, false documents or inaccurate and (or) incomplete information in order to make this preliminary decision on the classification of goods.
In this case, the decision to terminate the PR comes into force from the date of the PR.
2) the customs authority revealed errors that were made when making this preliminary decision on the classification of the goods and which affect the information about the product code.
In this case, the decision to terminate the PR comes into force from the date of this decision to terminate the PR.
Analysis of law enforcement and judicial practice allows us to conclude that the customs authority can always refer precisely to the incompleteness of the information provided and terminate the PR, despite the fact that the same description of the goods was provided during the registration of the PR and the subsequent customs declaration. In this case, the codes of goods, in customs declarations issued in accordance with the PR, will be subject to adjustment, from the moment of the adoption of such PR. Of course, such precedents are extremely rare, but nevertheless they do take place.
OL is subject to revocation in the following cases:
Changes have been made to the TN VED that affect the classification of the goods for which this PR is adopted;
The EEC Commission made a decision on the classification of certain types of goods, entailing a change in the classification of the goods specified in this PR;
The customs authorities made decisions or gave clarifications on the classification of certain types of goods, entailing a change in the classification of the goods specified in the PR;
The World Customs Organization has made decisions on the classification of goods used by the member states.
In 1, 2 cases, the decision to revoke the PR is made by the customs authority no later than 30 calendar days from the date of official publication of the relevant decision of the Commission and comes into force from the date of entry into force of such a decision of the Commission.
In case 3, the decision to revoke the PR is made by the customs authority no later than 30 calendar days from the date of official publication of the relevant decisions or clarifications on the classification of certain types of goods and comes into force simultaneously with such decisions or clarifications on the classification of certain types of goods.
In case 4, the decision to revoke the PR comes into force from the day the authorized customs body makes such a decision.