Strategizing Multinational Tax Risks

The World Customs Organization (WCO) has published a new Guide to Customs Valuation and Transfer Pricing.

The Guide will:

• Provide a policy/audit/control tool for Customs officials
• Cross reference transfer pricing documentation that may be relevant for customs purposes
• Address transfer pricing misconceptions
• Reconfirm “transaction value” as the starting point for customs valuation
• Encourage consideration of transfer pricing studies
• Encourage consistency of transfer pricing adjustments
• Encourage the provision of advance customs valuation rulings
• Provide Best Practices for business, integrating customs and transfer pricing documentation/discussions

A succinct summary by DLA Piper, and the Guide, are provided for reference:

https://www.dlapiper.com/en/uk/insights/publications/2015/06/wco-publishes-guide-to-customs-valuation/

http://www.wcoomd.org/en/topics/key-issues/revenue-package/~/media/36DE1A4DC54B47109514FFCD0AAE6B0A.ashx

The Guide should also be used as a proactive tool to review reporting structures of transfer pricing and customs employees/advisors, functional integration, etc. to address the new changes in transfer pricing and the possible effect on customs valuations and documentation going forward.