• USD/RUB USD/RUB 83.62
  • EUR/RUB EUR/RUB 93.72
  • CNY/RUB CNY/RUB 12.50
  • Bitcoin Bitcoin BTC $81604
  • Ethereum Ethereum ETH $2419
  • Ripple Ripple XRP $1.30
  • Solana Solana SOL $104.12
  • Cardano Cardano ADA $0.22
  • USD/RUB USD/RUB 83.62
  • EUR/RUB EUR/RUB 93.72
  • CNY/RUB CNY/RUB 12.50
  • Bitcoin Bitcoin BTC $81604
  • Ethereum Ethereum ETH $2419
  • Ripple Ripple XRP $1.30
  • Solana Solana SOL $104.12
  • Cardano Cardano ADA $0.22

LLC or LLC: how one letter in a contract leads to additional charges

LLC or LLC: how one letter in a contract leads to additional charges
Most Popular
17.10
Trepzy has launched multi-currency accounts for businesses in 90+ countries
16.10
Canton Fair celebrates 70 years: 30,000 exhibitors and a record for green goods
16.10
Russia and Kazakhstan have launched cargo transportation with e-CMR electronic waybill
16.10
Tax bill: blocking of marketplaces and fines up to 121,000 rubles
16.10
Ural electronic customs accelerated the release of cocoa beans three times
16.10
Wildberries and the Ministry of Economic Development have opened support centers for sellers in 8 cities
Over the past year, the Russian customs has made decisions on the adjustment of the customs value several times, indicating among the reasons for the unreliability of the stated prices a discrepancy in the name of the payer. We are talking about a situation where the company is named LLC in the contract, LLC in the invoice, and Ltd in the payment order. It is possible to fend off such claims, but it is cheaper to close the issue at the stage of signing the contract.

The discrepancy in the spelling of the organizational and legal form became an independent reason for customs questions about the transaction price. Inspectors interpret the discrepancy of the buyer's name in different documents of the kit as a sign that the stated information about the cost may be unreliable.

The mechanics are simple and unpleasant. The inspector checks the contract, invoice, payment order and transport documents against each other. If the Russian version of the contract contains Romashka LLC, the English version contains Romashka LLC, and the Chinese supplier issued an invoice for Romashka Ltd, formally the payer looks like three different persons according to the documents. Then an additional check is launched, the money goes into collateral, the goods are in a temporary storage warehouse.

Ivan Smolin, director of Tianjin Sirius Industry and Trade Co., Ltd., who described the practice in his Telegram channel, notes that it is not difficult to fend off such claims: the discrepancy is terminological in nature and is explained by the lack of a single translation standard. The problem is that it takes time to explain, and the goods are not moving at that time.

The recommendation boils down to one trick: to register all the variants of the name in the contract at once. In the Russian version, the full name is indicated in the preamble — LIMITED LIABILITY COMPANY "Romashka", in the details the abbreviated name is LLC "Romashka". In the foreign—language version of the contract, in the preamble, the buyer's name is written as it should look in English, LIMITED LIABILITY COMPANY ROMASHKA, and abbreviated versions are given in parentheses so that any of them that appear on the invoice or payment will match the text of the contract.

Then there's the question of discipline. The agreed spelling is transmitted to the supplier as mandatory for use in all batch documents, including the packing list and the export declaration. Separately, it is worth checking how the name is indicated on the company's card in the bank: the payment order is formed using bank details, and it is there that the fourth spelling option most often appears.

Наша группа в VK - Deliver2
Группа о новостях в сфере ВЭД, актуальные маршруты, актуальные способы оплаты, мнения участников рынка, интервью и подкасты.

Similar materials on the website