Sorainen Represents Lithuanian Companies in Dispute with Tax Authorities

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The Lithuanian office of Sorainen has successfully represented Zalvaris and Baltical in significant tax disputes with the Customs Department valued at a total of almost EUR 290,000.

Zalvaris is a leading Lithuanian waste recycling company. Baltical is Lithuania’s largest secondary aluminum casting company. The Lithuanian Supreme Administrative Court ruled in the cases that in order to impose anti-dumping duties, the customs authorities must prove the origin of the goods and that processing operations have been carried out in another country that would serve as a basis for changing the origin of the goods. 

In the particular matters at hand, the Lithuanian customs authorities had not recognized the certificates of origin for the goods provided by Zalvaris and Baltical. The Lithuanian customs authorities stated that the country of origin of the imported goods was the People’s Republic of China and imposed anti-dumping duties, additional charges, penalties, and default interest. The Supreme Administrative Court found that the customs authorities had failed to carry out an independent inspection, and instead relied solely on European Anti-Fraud Office reports. 

In its final judgement, the Lithuanian Supreme Administrative Court granted the appeals of both companies and reversed the decisions of courts of lower instance and of the Lithuanian customs authorities that were adverse to the companies. 

Sorainen Partner Kestutis Svirinas, and attorney Jonas Sakalauskas represented Zalvaris and Baltical.