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ICC Policy Statement on Transfer pricing and customs value

Highlights

  • Concerning related parties, formal recognition by the customs administration of the arm’s length principle (as per Article 9 OECD Model Tax Convention) in order to determine the customs value 

  • Recognition by the customs administration of post-transaction transfer pricing adjustments (upward or downward). This recognition should be applicable for adjustments made either as a result of a voluntary compensating adjustment – as agreed upon by the two related parties – or as a result of a tax audit 

  • It is recommended that in the event of post transaction transfer pricing adjustments (upward or downward); customs administrations accede to review the customs value according to one of the following methods as selected by the importer. 

  • It is recommended that in the case of post-transaction transfer pricing adjustments (upward or downward), companies be relieved from: 
    1. The obligation to submit an amended declaration for each initial customs declaration 
    2. The payment of penalties, as variations of the transfer price 
  • It is recommended that OECD methods be acceptable to customs administrations with an accommodation of the following elements: 
    1. Identical or similar goods 
    2. Recognition of corporate legal entities (performing specific functions and adding value within a group) 
  • Recognition of the acceptability of transfer pricing documentation by the customs administration

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