Kharkiv Tractor Plant has denied claims by the Income and Tax Ministry of Ukraine that the company failed to submit on time documents confirming the declared customs value of imported spare parts, as demanded by the Kharkiv Customs Service.

"As for the official position of the Income and Tax Ministry that Kharkiv Tractor Plant was untimely in submitting documents on the confirmation of the declared customs value, the top managers of the company declare that this is untrue. Actually, the auxiliary documents for the confirmation of the customs value were submitted on October 10, 2013, on the second day after the submission of the declaration," the company told Interfax-Ukraine.

Kharkiv Tractor Plant said that the products for which the Kharkiv Customs Service demanded additional documents have been supplied by long-term suppliers under direct contracts for a long period of time. Their customs value has not changed for a long time and did not raise questions with the customs agencies.

"In addition, the prices of some types of products delayed by the customs service were even higher in this consignment than they were in the previous consignment," the plant said.

The enterprise also said that employees of Kharkiv Customs Service, who from October 18 were sent on unpaid leave due to the stoppage of the plant in the light of the present situation, are perplexed with some of the tactless actions of the Kharkiv Customs Service and have demanded the quick settlement of the customs clearance issues for the delayed cargo.

Kharkiv Tractor Plant earlier decided to stop operations from October 18, 2013 due to the suspension of customs clearance of imported goods at the customs terminal of the Kharkiv Customs Service from October 9, including cargos of main suppliers of Kharkiv Tractor Plant – Russian companies.

Kharkiv Tractor Plant Director General Vladyslav Hubin said that there is a threat of a failure of a contract on supply of 220 tractors to Cuba due to the present situation.

The Income and Tax Ministry of Ukraine on October 18 published its official position, according to which the customs clearance of imported goods under declarations of Kharkiv Tractor Plant has been suspended until the enterprise submits additional documents to confirm the declared customs value of goods.

The ministry said that the price of spare parts declared by Kharkiv Tractor Plant considerably differed from the price under which the similar goods were imported to Ukraine to other enterprises, which are not affiliated with the Russian supplier. Kharkiv Customs Service demanded the documents, which are to confirm the absence of impact of the affiliation of the seller and the buyer of goods on their price.

Kharkiv Tractor Plant produces wheel and caterpillar tractors and road construction machinery on the basis of tractors.

Since February 2007, its strategic partner has been GAZ Group controlled by head and owner of BasEl – Oleg Deripaska.