Strategizing International Tax Best Practices – by Keith Brockman

As May 2016, the effective date for the EU’s Union Customs Code, approaches several questions remain.  One significant question is whether the  long-recognized “first sale” rule will be transformed into.. the sale occurring immediately before the goods are brought into the customs territory of the Union.

The links to Deloitte and PwC guidance highlight this change, among others, for which all MNE’s and organisations affected by EU customs duties should closely review and assess current operations to quantify impacts of such changes.

http://www2.deloitte.com/content/dam/Deloitte/nl/Documents/tax/deloitte-nl-tax-in-2016-the-european-union-will-have-a-new-customs-code.pdf

http://www.pwc.com/en_US/us/tax-services/publications/insights/assets/pwc-new-eu-definition-transaction-value-1st-sale.pdf

Tax/Customs oversight observations for MNE’s:

  • Are these separate functions?
  • Is there in-house customs expertise?
  • Are transfer pricing and customs integrated re: risks, opportunities and planning?
  • What supply chain changes are contemplated, and is customs a major consideration?
  • What reporting lines are in place for each function?
  • Should tax, treasury and customs be integrated functions for risk oversight and review?

As the OECD BEPS Actions approach conclusion the end of this year, it may be timely to review anticipated transfer pricing changes and upcoming customs considerations for effective long-term planning.

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