Please click here for a copy of Deloitte`s Global Report on the Interaction between Transfer Pricing and Customs Valuations. For any questions or assistance related to the valuation of imported and exported goods, please send us an email via the “Contact Us” section below or via the online form under the link on the right. For importers, the process of estimating the value of a product for customs raises problems that can be as serious as the rate of duty in rem. The WTO Customs Valuation Agreement aims at a fair, uniform and neutral system of valuation of goods for customs purposes, a system consistent with economic circumstances and prohibiting the use of arbitrary or fictitious customs values. The Committee on Customs Valuation of the Council for Trade in Goods (CGT) conducts work on customs valuation in the WTO. As more and more tax authorities around the world seek to derive their fair share of revenues from global transactions, it will be imperative for businesses to ensure that in addition to keeping transfer pricing reports up to date from an income tax perspective, a separate report on customs value is also prepared to ensure that its transfer pricing method can be justified from the point of view of customs valuation. The Customs Valuation Committee of the Council for the Movement of Goods (CGT) is conducting work on customs valuation in the WTO as part of a series of trade facilitation measures. The current president is. Brief information on customs valuation refers to the “Customs Value” section of the WTO Guide “Understanding the WTO”. Although the two tax principles are at the heart of the arm`s length principle, which applies to all related party transactions, the way in which this ultimately affects in practice could be very different, as tax authorities focus more on year-end profits, while customs authorities are required to ensure that each transaction complies with the arm`s length principle. In the context of customs, these are usually import transactions.

The transaction value method is used in more than 90% of world trade on the basis of the WTO Customs Valuation Agreement, which sets out the rules that all customs administrations of WTO Members must follow when determining the appropriate customs value when collecting customs duties and other national taxes on imports into the Member State concerned. Browse or download it from the Legal Texts Portal: On this page you will find important information about Singapore`s participation in the WTO. Singapore has been a member of the WTO since 1 January 1995 and a member of GATT since 20 August 1973. Wong Meng Yew is a partner in Deloitte`s Singapore office and leads the Southeast Asia (SEA) global trade consulting practice. He regularly advises clients on investment navigation. You can perform more sophisticated searches using the Documents Online search function (opens in a new window) by defining several search criteria such as the document icon (i.e. code number), full-text search, or document date. Hover over a dispute number in the following table to display the title of the dispute. Click the dispute number to go to a page with detailed information about the dispute. . Search for documents online Customs value documents use the code G/VAL/* (where * gets additional values) These links open a new window: Wait a while until the results are displayed. In the context of related party transactions, where customs values are checked more frequently by customs authorities because it is possible to set prices that may infringe the arm`s length principle, it is essential that companies ensure that all fixed transfer prices are acceptable not only from the point of view of income tax, but also from the customs point of view.

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