26 April 2016 Technical Committee on Customs Valuation approves case study on transfer pricing The Technical Committee on Customs Valuation (TCCV) has approved a new case study demonstrating how a transfer pricing study may be used to support customs related party pricing. Following approval by the World Customs Organization Council, it is expected to be released as TCCV Case Study 14.1. Notably, the case study explains how a transfer pricing study utilizing the Transaction Net Margin Method (a method analogous to the US Comparable Profits Method) testing the profits of the importer/distributor can demonstrate that the relationship between the parties did not influence the price, and consequently transactions priced using this approach qualify for transaction value. A Tax Alert prepared by Ernst & Young's Global Trade and Transfer Pricing groups, and attached below, provides additional details. Document ID: 2016-0753 |
