Problems of customs legal regulation in international trade between the European Union, Russia and China: analysis of Lithuanian judicial practice since 2010

ENPurpose – the aim of this article is: (i) to overview the level of the problems and obstacles of international trade between the Republic of Lithuania, as the EU Member State and the BRICS group of countries (Russia, China) according to the case-law of the Republic of Lithuania in disputes relating to customs decisions and actions (for the period from 2010-01-01 to 2015-01-01) and (ii) to present proposals for development of the regulatory regime for import customs duties. Design/methodology/approach – analysis of relevant issues is based both on theoretical (analysis and synthesis, systematic) and in particular empirical methods (statistical analysis of data, analysis of documents, generalization of professional experience, in particular – practice of the courts of Lithuanian Republic in disputes with customs authorities). The article consists of an introduction, three chapters and conclusions. Findings – for more than ten years (since 2004) the Republic of Lithuania is a member of EU and is realizing its economic and trade relations with other foreign countries, and regulating customs duties according to the requirements of the EU common foreign trade policy (Common Commercial Policy). After accession to the EU, more than 20 percent of Lithuanian foreign trade consisted of trade transactions with the Russian Federation, which, despite of some fluctuations, had an overall trend to grow (increase) (Bernatonytė, 2011; Slavickienė A., Jatkūnaitė D, 2006). In addition, from 2009 to 2014 Lithuania consistently increased its foreign trade (both imports and exports) with the other country of the rapidly growing economic BRICS region of the world, i.e. China.On the other hand, the analysis on practical problems of the foreign trade with these particular countries which have arisen in Lithuania since 2010, justifies that most legal problems of customs regulation are caused by legal matters relating to the tariff classification of imported goods (inadequate requirements for the evidence to support appropriate classification of goods), determining of the customs origin of goods and proper application of anti-dumping customs duties (while regulating trade with China), as well as clearly not defined importance of separate individual sources of law in the field of customs which could be binding for the settlement of disputes (e. g. legal significance of documents accepted by World Customs Organization). These customs duties application problems should be solved in the future, in order to develop international trade with the referred BRICS countries.Research limitations/implications – the analysis is limited to a certain period of time (yrs. 2010 – 2014) and is based on the practice of the Lithuanian Supreme Administrative Court in cases related to the activities of customs and taxation with customs duties in Lithuania. The scope of the research consists of the situations, when the goods from the third countries (BRICS countries – Russia and China) were imported into Republic of Lithuania. Taxation of export operations and specifics of their taxation with customs duties in third countries (Russia and China) were not analyzed in this article. Practical implications – based on the context of international economic law, the provisions of the EU customs legislation and their application in the practice of courts the article identifies the problems of taxation of international trade with BRICS countries (Russia and China) on the national level (from the perspective of Lithuania). The article also presents opportunities to improve customs duties regulation regime applied to the international trade with Russia and China in the Republic of Lithuania, as a Member State of the European Union and determine what legal measures should be taken to ensure a free, fair and open international terms of trade with these particular countries. [...]. [From the publication]