|Coordination between customs and transfer pricing rules has always been fraught with traps |
Photograph by CBP Photography licensed under CC BY-SA 2.0
US Customs and Border Protection (CBP) is inviting public comment on its decision to reconsider its approach to post-import value adjustments. Taxpayers finally have an opportunity to try and set right what has been a consistent bone of contention between customs and transfer pricing documentation since the introduction of transfer pricing legislation, in the US, in the 1990s.
Tax advisers, however, simply consider the invitation by the CBP as a good first-step, rather than a solution to the problem.
A step in the right direction
The invitation will is designed to solve the problems between customs legislation and transfer pricing regulations, which often leave taxpayers out-of-pocket. The issue centres on post-import value adjustments made between related parties.
"Coordination between customs and transfer pricing rules has always been...
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