customs valuation and transfer pricing

WTO, Customs Valuation and

Transfer Pricing

Points to discuss:

What is the WTO?

GATT Art. VII

Brussels Definition of Value

Customs Valuation Agreement

Transaction value

Related Parties

Transfer Pricing

The ping pong game

The WTO

Corner stone of the Multilateral Trading

System with agreements covering 3 areas:

Trade in goods

Trade in services

Trade related intellectual property rights

And a dispute settlement system to enforce them!

WTO Agreements

1A

Multilat. Trade

Agrs. on Goods

1B

GATS

1C

TRIPS

2

Dispute Settlem. Undst.

3

Trade Policy

ReviewMech.

4

Plurilat.Agrs.

Marrakesh Agreement Establishing the World Trade Organization

Understandings

Multilateral Agreements on:

Agriculture

Sanitary and

Phytosanitary measures

Safeguards

Technical Barriers to Trade

Trade-related investment measures

Antidumping

Customs Valuation

Preshipment inspection

Rules of origin

Import Licensing Procedures

Subsidies and

countervailing measures

Marrakesh Protocol

GATT 1994

1A

Multilat.

Trade

Agrs. on

Goods

WTO Multilateral Trade Agreements on Goods

Value not always required!

To levy a duty, it is normally necessary to know 3 things:

HS NomenclatureTariff

treatment

A duty

• 5%Ad valorem

• $5 per kgSpecific

• 10% + $2 per kgCompound

• 10% or $2 per kg, whichever is higherMixed

• 8.3% + EA MAX 18.7% + AD S/Z“Technical”

Type of duty Example

Types of duties

Transaction Value Method

Identical Goods TV Method

Similar Goods TV Method

Deductive Value Method

Computed Value Method

Fall Back Method

Customs Valuation Methods

1. Price actually paid or payable

2. For the goods

3. When sold for export

4. Adjusted (Art. 8)

“CV of imported goods shall

be the transaction value”

Transaction Value

ONLY those in Article 8 are allowed!

Related-Party Transactions

x

Y

Z

Related-Party Transactions

Keynotes on CV and TP

Customs Valuation and Transfer Pricing

Ping pong game

________________________________________________________________________________________________________

Thank youLeonardo Macedo

Senior Customs Officer / WCO Accredited Expert

Leonardo.Macedobr@gmail.com