Amendments to customs declarations: Ministry of Finance proposes updates to the adjustment sheet procedure

The Ministry of Finance of Ukraine has published for public consultation a draft order proposing amendments to the Procedure for issuing an adjustment sheet, approved by Order No. 1145 of the Ministry of Finance of Ukraine dated 6 November 2012 (hereinafter - the "Procedure"). The draft order aims to align the existing Procedure with the amendments to Article 269 of the Customs Code of Ukraine, improve the process for issuing adjustment sheets and ensure a uniform approach by customs authorities to their application.

Key amendments proposed by the draft order:

• clarification of the procedure for amending customs declarations in cases of indirect customs representation;

• establishment of approval requirements for issuing an adjustment sheet;

• recognition of an application for refund of customs payments as a valid basis for issuing an adjustment sheet;

• specification of the sequence of actions for providing additional customs payment or their refund;

• consideration of late payment interest in the adjustment sheet procedure;

• introduction of a mechanism allowing further amendments through the issuance of a new adjustment sheet.

The proposed amendments are intended to eliminate existing practical ambiguities, streamline the process for amending customs declarations and ensure a consistent approach by customs authorities to the issuance of adjustment sheets.

The draft order seeks to align the Procedure with Article 269 of the Customs Code of Ukraine, according to which, in cases of indirect customs representation, amendments to a customs declaration may be initiated not only upon the written request of the declarant, but also by the holder of the customs procedure.

In addition, an adjustment sheet may only be issued subject to written approval from the head of the customs clearance unit, evidenced by the relevant endorsement on the written request.

One of the practical amendments addresses situations where a customs declaration must be amended to refund customs payments following the cancellation of a decision by a customs authority. The draft order proposes also treating the refund application as the declarant's written request for the purposes of issuing an adjustment sheet. This would eliminate the need for the declarant to submit multiple separate applications to implement the same decision.

The draft order further provides that where the issuance of an adjustment sheet may involve additional customs payments or a refund, the involvement of the relevant specialised structural units of the customs authority, depending on their area of responsibility, will be mandatory.

The draft order proposes taking into account information on accrued late payment interest when issuing an adjustment sheet. In particular, information regarding the additional payment or refund of late payment interest would be reflected in the adjustment sheet with customs payments and penalties.

The draft order also addresses situations where further changes are required after a customs declaration has already been amended.

In such cases, the additional amendments would be implemented through the issuance of a new adjustment sheet. Previously issued adjustment sheets would not be deleted from the customs authorities’ information systems.

If adopted, the draft order will make the process for amending customs declarations more formalised and predictable. The proposed amendments are intended to align the Procedure with the current version of the Customs Code of Ukraine, eliminate the need to submit duplicate applications and harmonise the practices of customs authorities when issuing adjustment sheets in cases involving additional customs payments or refunds.