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:
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.