The increase in complaints from importers and citizens about the overvaluation of cars imported from South Korea has led Kosovo Customs to issue an internal instruction. From now on, Korean cars will be valued based on the specific market value from this country. According to lawyers, Customs has not yet correctly implemented the provisions of the Customs Code.
Cars imported from South Korea will now be cleared for customs based on the purchase value in the Asian country.
Kosovo Customs has issued an internal instruction, which determines the reference to the value of the specific Korean market.
The Kosovo Customs decision was made after numerous complaints from importers and citizens about the overvaluation of these vehicles.
“This instruction provides that in certain situations, when objective circumstances and valid documentation allow, the valuation method with available data should be used, harmonizing the prices of vehicles from Korea with those of the European market catalog through an accepted deviation of value, which recognizes the characteristics of the market and is based on a genuine analysis by Kosovo Customs professionals,” reads a response from Customs.
Korean cars are priced lower than European ones due to the Korean Government’s measures to encourage its citizens to switch to electric vehicles.
Customs has announced that the increase in complaints they have received over the past year and this year is mainly due to the increase in vehicles imported from South Korea.
Lawyer Dren Kukaj says that the problem lies in the failure to correctly implement the provisions of the Customs Code since, according to him, the transaction value of the goods was not taken into account.
“They are overvaluing these vehicles by increasing the financial customs burden for these vehicles, which I think is an illegal practice, and at the same time unfair to our citizens, who fortunately have managed to find cheaper vehicles, which I think Customs should value at their real value, which is not the case. These cases are now due to a consolidated practice of the courts in Kosovo, which is profitable in Kosovo,” said lawyer Kukaj.
Kukaj said that in most cases the evaluation of Korean cars is based on the European Union’s car catalog.
“If someone has bought a car that costs 7-8 thousand euros, they set a value based on the catalog of 13-14 thousand euros, or more or less, and this immediately has an impact on the customs burden that those people have to pay,” he said.
According to Kosovo Customs data, during 2024, 5 vehicles were imported from South Korea, with a total value of 102 million 69 thousand euros.
From these vehicles, Customs has received over 6 million euros in customs duty, around 2 million and 800 thousand euros in excise duty and over 14 million euros in VAT.
Customs has received 31 appeals regarding revaluation as of December 2024, 438. Of these, about 48 percent or 210 cases have been approved.
On November 4, the Minister of Finance, Hekuran Murati, signed the decision to appoint members of the body to review appeals against decisions issued by the Tax Administration (ATK) and Customs.
According to data from this ministry, during January and February, 190 complaints were received against Customs, 180 of which were related to the revaluation of goods.