ECJ Finds Transport Costs Factored Into Import Tax, Shouldn't Be Counted Twice
Lithuanian fertilizer manufacturer Lifosa UAB does not have to pay taxes twice for transportation costs it negotiated on imports from a Belarusian company, the Court of Justice of the European Union ruled April 22. In its purchase contract, Lifosa negotiated…
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that the Belarusian company would pay the transport costs of the goods, making them essentially priced into the goods themselves, the court said, even if those transportation costs are greater than the cost of the goods. "The costs actually incurred by the producer for their transport to the place where they have been brought into the customs territory of the European Union should not be added to the transaction value of the goods when, according to the agreed delivery terms, the obligation to cover those costs lies with the producer, even though those costs exceed the price actually paid by the importer, provided that that price corresponds to the real value of the goods, a matter which is for the referring court to establish,” the opinion said.