UTB’s & recovery of duties

When a customs debt arises, this customs debt will be levied via an invitation to pay (also referred to as UTB). Such an invitation to pay can come as a complete surprise. In many cases, Customs' position may not be correct. Therefore, you have the right to initiate an objection procedure against Customs, and if necessary, file an appeal. Consider questions such as whether the UTB was issued to the correct party, whether the right to defense was violated, or whether the correct legal basis was used by Customs.

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The customs debt is the amount of customs duty owed. This amount consists of the import duty and, if applicable, anti-dumping or countervailing duties. National taxes, such as VAT, excise duty and consumption tax do not fall under the term ‘customs debt’ but are levied alongside customs duties.

Every day, importers and especially customs brokers submit thousands of import declarations. During the verification of these declarations, Customs regularly identifies discrepancies that lead to data corrections. As a result, you may owe more customs duties than initially declared. However, these corrections often only scratch the surface. Customs has adopted a systematic approach to post-clearance audits of declarations, known as the post-importation control (also referred to as CNI).

If Customs believes that insufficient customs duties were levied, they can recover the underpaid duties. This is done by issuing an invitation to pay (UTB).

Subjects

Receiving a UTB

Help! I received a UTB and need to pay within ten days!

When you receive a notice of intention for a UTB, you are considered the debtor. Generally, you have 30 days to respond to this notice. The UTB itself follows thereafter. What options do you have when receiving a notice of intention or a UTB?

Practical tips

  1. Determine whether the intention is justified
    Customs is not always correct. They may have misclassified the goods, incorrectly identified you as the debtor, or overlooked origin certificates that qualify for a lower duty rate. If you are unsure whether the inspector's intention is correct, we advise to consult an expert. Our specialists are happy to provide advice.

  2. Verify whether the amount has been calculated correctly
    If, after receiving the notice of intention, you believe that the inspector has made a calculation error, contact them to have this corrected.

  3. Decide whether to object to the UTB
    If you have responded to the notice of intention but still receive the UTB from the inspector, you may file an objection against it. Need assistance? Our experts can support you throughout this process.

  4. Request a deferral of payment
    If you agree with the but cannot pay the amount immediately, contact the collector to request a payment deferral. Note that specific conditions apply to such requests.

  5. Seek support for your appeal procedure
    If your objection is denied, appealing the decision in court may be the next step. Ensure you have proper support, as legal proceedings are not an everyday occurrence for most people (fortunately).

 

Publications

Finally: The regular recovery period is going to be three years again!

The majority of import declarations are not immediately checked by Customs. On the contrary, Customs usually checks import declarations afterwards. This means that Customs usually issues an additional assessment, or an 'invitation to pay', mostly after a few months or years. However, Customs cannot recover unlimitedly. According to the Union Customs Code, the standard period for post-clearance recovery is three years, and under certain circumstances a recovery period over five years is possible.

More...

Anti-dumping duties: retroactive application and suspended verification

You are a happy person! You have imported goods from Indonesia at a great price. You are very pleased with how the import process went, as you only had to pay import duties and there were no anti-dumping duties applicable. This would have been different if the goods had come from China, as anti-dumping duties would have been applicable applied. However, since the same goods came from Indonesia, you have no problem. Nevertheless, you are walking on thin ice, as evidenced by the case law of the Court of Justice. An anti-dumping duty can be applied retroactively. Additionally, a customs agent faces extra risks with a declaration for goods that may be subject to an anti-dumping duty if it receives the status of 'suspended verification'.

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Anti-dumping duties: not always a foregone conclusion!

In certain cases, Customs imposes anti-dumping duties. These duties are designed to counteract the practice of selling products on the European market at a (too) low price. Such anti-dumping duties are established at the request of the European market, and a comprehensive procedure must be followed before the duty can be imposed. In recent years, the Court of Justice has ruled on several occasions that regulations imposing anti-dumping duties were invalid. This means that the anti-dumping duty was – retrospectively – not owed. In such cases, you must make sure to file a timely objection or request a refund.

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