The Court of Appeals resolved the dispute between a contractor and the Transcarpathian Customs

In order to reconstruct the passenger area of the checkpoint "Uzhgorod", following the tender procedures held in 2015, the Transcarpathian Customs concluded a contract with the "Torgovyi Dim Ukrvtorresurs" LLC.

In order to fulfill the specified contract, the contractor received an advance payment of UAH 12.7 million to carry out works by the end of 2015.

However, within the agreed period of time, the contractor performed UAH 3.3 million worth of work and has not returned the unused advance payment.

Due to improper performance of obligations by the contractor, the customs office was forced to terminate the contract with the counterparty.

Despite the customs officer’s claim, the contractor refused to voluntarily return the balance of the advance payment and pay penalties.

Taking into account these circumstances, the Transcarpathian Customs appealed to the court with a claim for damages and penalties.

The Economic Court of Transcarpathian region, by it’s decision of March 3, 2018, ruled to recover from the "Torgovyi Dim Ukrvtorresurs" LLC the incurred losses in the amount of UAH 12.2 million in favor of the Transcarpathian Customs.

In an attempt to avoid money collection, the contractor appealed the court decision to the court of appeal.

Following numerous court hearings, the Western Economic Court of Appeals found the claim of the Transcarpathian Customs valid and, by the decision of February 5, 2019, upheld the decision of the court of first instance.

At the same time, the Transcarpathian Customs continues the reconstruction of the checkpoint "Uzhgorod" in order to create proper and comfortable conditions for citizens crossing the customs border, the press service of the SFS Transcarpathia informed.