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The Link Between Transfer Pricing & Customs Valuation - 2014 Country Guide


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The Link Between Transfer Pricing and Customs Valuation — 2014 Country Guide is one of the most broad-based and authoritative, annually updated, guides of its kind, compiling essential information regarding the customs-related requirements and implications of related party pricing and retroactive transfer pricing adjustments in numerous key jurisdictions around the world. The information contained herein has been provided by local country specialists from Deloitte Touche Tohamtsu Limited’s global network* of Customs and Global Trade (CGT) professionals.** With more than 500 professionals in over 100 countries worldwide, the Deloitte member firms' CGT practice serves importers and exporters in business sectors and industries around the world.

What’s new in 2014?

The Link Between Transfer Pricing and Customs Valuation — 2014 Country Guide has been updated this year to address several country-specific regulatory and enforcement changes and advancements impacting related party customs valuation,*** including:

  • Canada saw the development of new case law that introduced the potential for a duty refund where the transfer pricing adjustment results in a decreased customs value. The impact of this decision on the customs authorities’ administrative policies and practices remains to be seen.
  • Chile recently enacted legislation that would allow the customs and tax authorities to agree on the same price for corporate tax and customs purposes. Also, there is an increasing risk that the tax authorities may deny the corporate tax deduction if the taxpayer’s inventory basis and the values reported for customs purposes are not consistent.
  • Mexico’s sweeping tax reform legislation that took effect on 1 January 2014 provides for updated procedures for reporting transfer pricing adjustments to the customs authorities.
  • Romania has implemented new legislation restructuring penalties applicable to transfer pricing adjustments that result in increased customs values.
  • Vietnam also revised its penalty structure related to customs value adjustments and further actions are expected related to import VAT or equivalents when customs value adjustments are made.
  • France, Italy and the Eurasian Economic Commission (the regulatory body of the customs union of Belarus, Kazakhstan and Russia) have either newly issued or are expected to issue publicly available guidance on the treatment of related party transfer prices and transfer pricing adjustments.

Additionally, The Link Between Transfer Pricing and Customs Valuation — 2014 Country Guide has been expanded to include five new contributing countries of increasing interest to multinationals: Ecuador, Egypt, Israel, Saudi Arabia and Turkey.

For further information, please download the attachment.

As used in this document, “Deloitte” means Deloitte LLP and its subsidiaries. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Certain services may not be available to attest clients under the rules and regulations of public accounting.

* Deloitte Touche Tohmatsu Limited (DTTL) is a UK private company limited by guarantee. As used in this publication, “Deloitte” and “Deloitte network” refer to DTTL and/or any one or more of its member firms, each of which is a legally separate and independent entity. Please see www.deloitte.com/about for a detailed description of the legal structure of DTTL and its member firms. 

** The Link Between Transfer Pricing and Customs Valuation — 2014 Country Guide is intended as a general guide only. Its application will depend on the particular circumstances involved. While all reasonable attempts have been made to publish accurate information as of January 1, 2014, the rules underlying the information provided may change, which may impact the accuracy of this communication. None of the Deloitte network, its member firms, or their related entities is, by means of this communication, rendering professional advice or services. No entity in the Deloitte network shall be responsible for any loss whatsoever sustained by any person who relies on this communication.

*** The WTO Customs Valuation Agreement defines "related parties" as: (a) officers or directors of one another's businesses; (b) legally recognized partners in business; (c) employer and employee; (d) any person [that] directly or indirectly owns, controls or holds 5 percent or more of the outstanding voting stock or shares of both of them; (e) one of them directly or indirectly controls the other; (f) both of them are directly or indirectly controlled by a third person; (g) together they directly or indirectly control a third person; or (h) members of the same family.

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