ValuationThe U.S. Customs Service closely scrutinizes the prices between related parties to determine whether the transfer pricing fairly reflects market value. Customs' efforts may be coordinated with the Internal Revenue Service which requires parity between a product's inventory basis for tax purposes and its customs value.
We work closely with tax counsel to maximize tax and customs benefits while ensuring compliance with all applicable rules and regulations. A thorough analysis of a firm's customs and tax structure often leads to modifications in corporate organization or sourcing structures which can yield meaningful tax and duty savings.
Potential duty savings or potential duty liability can arise in transactions involving:
- Buying agents
- Middleman sellers (triangle or multi-tiered trade)
- Materials, machinery or design assistance provided to the seller
- Royalties
- Inter-company pricing
- Defective or late shipments