Customs Valuation and Transfer Pricing

Description

Importers into the U.S. that purchase goods from related parties must declare the value of imported goods on an entry-by-entry basis to U.S. Customs and Border Protection. Though importers would like to use a single value for both Customs and IRS purposes, that doesn't always work.

Importers struggle to reconcile the conflicting Customs and IRS valuation rules concerning merchandise imported from related parties. Transfer pricing documentation is insufficient for Customs to support the use of transaction value.

Generally, related-party prices are only acceptable if the parties’ relationship did not influence the price, and importers must be able to demonstrate this to Customs. Counsel plays a key role in reconciling the valuation issues and making a case for an import valuation to Customs and the IRS.

Listen as our authoritative panel examines valuing imports for U.S. Customs purposes and the potential impact of Customs values on income tax valuation. The panel will also offer strategies for managing related-party risks.

Outline

1. Customs value
   1. Methods
   2. Differences in approach: Customs v. transfer pricing
2. Customs and tax related party pricing rulings
   1. Are the parties to the transaction sufficiently related so that their relationship could be affecting the price?
   2. If so, how is the correct price to be measured?
3. Compensating adjustments impact on customs value
   1. Application of transaction value
   2. How adjustments should be taken into account
   3. Treatment of increases and decreases
4. Customs reasonable care requirement
   1. Impact of APAs
   2. Impact of transfer pricing studies
5. Managing customs related party risks
6. Potential impact of customs value on income taxes
   1. IRC section 1059A

Benefits

The panel will review these and other key questions:

• What tests are used for determining if the transaction value is acceptable?
• What factors must be considered before declaring an import value based on transaction value?
• What steps can importers take to harmonize customs and income tax valuation requirements?

Webinar/Teleconference

Strafford webinars/teleconferences offer several options for participation: online viewing of speaker-controlled PowerPoint presentations with audio via computer speakers or via phone; or audio only via telephone (download speaker handouts prior to the program).  Please note that our webinars do not feature videos of the presenters.

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CLE Credit

Strafford's live seminars qualify for CLE in every state that accredits webinars. They offer you a high quality, cost effective, and convenient CLE option, with no lost travel time or expenses.

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CPE Credit

Strafford is a NASBA CPE sponsor and our live seminars qualify for CPE credits. They offer you a high quality, cost effective, and convenient CPE option, with no lost travel time or expenses.