Overview of customs pactice

RESPONSIBILITY OF CUSTOMS REPRESENTATIVE

Previously, in Kazakhstan, customs representatives (hereinafter - customs brokers) did not bear any responsibility. Customs brokers could incorrectly calculate companies’ customs fees, VAT and apply the wrong customs code. As a result, companies were faced with all negative consequences, additional customs fees, charges and losses. Customs brokers avoided their responsibility for professional services.

Our practice shows that, in Kazakhstan, customs brokers can and must bear responsibility by the law and by their professional responsibility insurance.

According to the Kazakhstan’s Customs Regulation Code, both parties, a company and the customs broker, are jointly and together liable for the additional customs fees and VAT. According article 494.6 of the Kazakhstan’s Customs Regulation Code any restrictions of customs broker’s responsibility in the contract are invalid and have no legal force. Therefore, customs brokers are legally responsible for incorrect calculation of customs fees, VAT and customs codes.

COMPENSATION FOR LOSSES

Now, if any company receives additional charges, additional customs fees and VAT due to the actions and services of customs brokers, such company can recover damages and losses from customs brokers by using litigation options. Even if customs brokers will not have enough money, a company can

Even if customs brokers will not have enough money, a company can recover all damages and losses from the insurance company. That is because every customs broker due to the law is obliged to insure his professional service in the local insurance company.

RECOMENDATIONS

Before working with a customs broker we recommend you:

• to check whether the customs broker has an insurance certificate and how much losses are insured by the insurance company;

• to check a contract for customs broker’s services before signing, and to include our recommendations;

• to give all the information and documents to the customs broker in the written manner in order to avoid any future disputes;

• to receive qualified legal assistance on any fiscal customs authority’s notices and to make action plans in order to know what to do next.