CBP Issues New ICP on Determining Related Party Transaction Value Acceptability
U.S. Customs and Border Protection has issued an informed compliance publication entitled, What Every Member of the Trade Community Should Know About: Determining the Acceptability of Transaction Value for Related Party Transactions.
Sign up for a free preview to unlock the rest of this article
If your job depends on informed compliance, you need International Trade Today. Delivered every business day and available any time online, only International Trade Today helps you stay current on the increasingly complex international trade regulatory environment.
This publication was prepared by the Commercial and Trade Facilitation Division of Regulations and Rulings and deals with certain aspects of the customs valuation requirements for related party transactions (i.e., in which the buyer and seller are related parties as defined in 19 USC 1401a(g).)
ICP Summarizes Issues Regarding Related Party Transaction Value Acceptability
The ICP covers the following issues regarding related party transaction value acceptability (partial list):
The tests for determining the acceptability of transaction value for related party transactions;
CBP's application of the related party tests, including information and evidence needed to substantiate claims that transaction value is acceptable under these tests;
The relevance of Transfer Pricing Agreements and Transfer Pricing Studies to the circumstances of sale test in determining the acceptability of transaction value; and
The importer's obligations regarding the declaration of value in related party transactions.
CBP states that the information provided in this publication is for general information purposes only. Recognizing that many complicated factors may be involved in customs issues, an importer may wish to obtain a ruling under CBP Regulations, 19 CFR Part 177, or obtain advice from an expert (such as a licensed Customs Broker, attorney or consultant) who specializes in customs matters. Reliance solely on the general information in this ICP may not be considered reasonable care.
ICP on Related Party Transaction Value Acceptability (issued April 2007) available at http://www.cbp.gov/linkhandler/cgov/toolbox/legal/informed_compliance_pubs/icp089.ctt/icp089.pdf