Publication date: 17.04.2025
Import of goods, customs clearance.
How a Ukrainian Company Avoided Fines and Protected Its Reputation in a Customs Valuation Dispute
Importing goods to Poland is one of the most popular business directions for Ukrainian entrepreneurs. The Polish market is attractive due to its stability, transparent business rules, and promising opportunities for scaling. With a shared border, customs union, and simplified logistics, Poland is a strategic partner for Ukrainian small and medium-sized enterprises. However, open opportunities also bring increased tax risks. Incorrectly executed contracts, late-filed declarations, uncoordinated pricing, or a lack of understanding of tax regulations can quickly draw the attention of KAS (Krajowa Administracja Skarbowa – National Revenue Administration). This can result in audits, business disruption, fines, account freezes, and reputational damage that complicate future partnerships and banking relationships.
In June 2023, AgroTechno UA, a Ukrainian exporter of agricultural machinery that opened a branch in Poland to expand imports from Turkey, became the subject of an intensive audit by KAS. The audit was triggered by suspicions of customs value underreporting, allegedly used to avoid tax liabilities. The gap between the declared price and the estimated market value was approximately 30%, raising red flags for the tax authority. KAS questioned the integrity of the deal and launched an investigation into a potential fictitious import scheme used to minimize tax burdens.
Facing a serious threat, the company turned to tax attorney Nataliia Bevziuk — an expert in international taxation and legal support for businesses within the European Union. Her deep knowledge of Polish legislation, experience working with KAS, and strategic defense approach helped avoid multimillion-euro penalties and preserve the company’s international business reputation.
Main Issues Faced by the Company
Risk of losing tax reputation
Suspension of operations at the Polish branch
Suspicion of using a fictitious import scheme
Stages of Business Protection — Actions Taken by the Tax Attorney
- Collection of a complete documentation package
Nataliia Bevziuk began by constructing a comprehensive legal picture. All contracts with Turkish suppliers, invoices, payment orders, bank statements, certificates of origin, customs declarations, and logistics documents were collected. - Transfer pricing analysis
To substantiate the pricing structure, Nataliia engaged an independent auditing firm. A professional review confirmed that the transaction price adhered to market conditions and followed the "arm's length principle," a critical factor for tax authorities in transfer pricing cases. - Legal position for KAS
A legal justification was prepared, including market analysis of agricultural machinery in Turkey and Poland, margin calculations, logistics costs, commercial discounts, and delivery terms. A written explanation was submitted to KAS, clearly outlining why the declared value was lower, yet still consistent with fair market pricing. - Avoiding an on-site audit
Thanks to the well-structured legal arguments and timely documentation, Nataliia successfully prevented a physical inspection. The case was transferred to an electronic audit, allowing the company to maintain operational continuity and avoid disruptions. - Official case closure
After two months of communication with KAS, the tax administration acknowledged the legitimacy of AgroTechno UA’s actions. No fines were imposed, the company's reputation remained untarnished, and the case was logged as a positive precedent in analytical records.
Why This Case Was Critically Important for Ukrainian Businesses
- Avoided significant financial losses
- Maintained uninterrupted import activities
- Preserved trust from Polish banks and partners
- Confirmed transparency in tax policy
- Established a positive legal precedent in the import sector
- Demonstrated best practices for handling EU tax audits
- Increased tax security for future operations
Strengthened market position in the European agricultural equipment sector
Question
What are the risks of underreporting customs value?
Answer
Such actions can be classified as tax violations, resulting in administrative or criminal liability, financial penalties, interest charges, frozen bank accounts, and suspension of international trade operations.
Question
When should you contact a tax attorney?
Answer
During the planning phase of import activities, when preparing for audits, in tax dispute situations, or if there are signs of suspected tax fraud. The earlier, the better — ideally before any issues arise.
The AgroTechno UA case is a clear example of how a well-structured legal strategy can safeguard a business even in high-risk scenarios. Tax disputes, especially within the EU, are often accompanied by substantial financial and reputational consequences. However, with professional legal support, companies can not only mitigate these risks but also achieve sustainable growth in new markets.
Nataliia Bevziuk proved that Polish tax law is not solely punitive — it also offers a platform for defending legitimate business interests, provided the approach is professional, proactive, and evidence-based. Success in this case resulted from meticulous documentation, thorough knowledge of Polish tax regulations, and continuous monitoring of EU legislation updates. This legal strategy not only prevented sanctions but also validated fair pricing and transaction transparency.
Legal support for imports, mastery of transfer pricing principles, and effective communication with tax authorities are essential for any Ukrainian company entering the European market. Thanks to this approach, AgroTechno UA not only avoided fines but also secured its reputation as a reliable and responsible international partner.
This precedent should be viewed as a strategic model for business protection when importing to the EU. It proves that proper documentation, price analysis, deal transparency, and legal expertise are not only preventive tools but also foundations for building a robust reputation as a trustworthy taxpayer. Every action taken by Nataliia Bevziuk in this case contributed to setting new legal support standards for Ukrainian companies striving to succeed in European markets.
