The WCO is launching a major new guide on the topic of Customs valuation and transfer pricing. The interaction between these two regimes has been an important issue both for Customs administrations and the trade over recent years.
The issue concerns international transactions within a multi-national group. Customs aim is to ensure that the price for transactions of imported goods is not influenced by the relationship between buyer and seller (based on the methodology for Customs valuation contained in the WTO Valuation Agreement). Tax administrations, on the other hand, are examining the same transactions to ensure the conditions are consistent with the 'arm’s length principle' for profit tax purposes. Generally, the methodology used for this purpose is based on the OECD Transfer Pricing Guidelines.
This has been excerpted from a 24 June 2015 news item by the World Customs Organization and is available in its entirety at:
http://www.wcoomd.org/en/media/newsroom/2015/june/new-wco-guide-to-customs-valuation-and-transfer-pricing.aspx