New Customs Policy Provides Incentive to Prepare APAs and Written Transfer Pricing Policies

North American Free Trade & Investment Report

On May 30, 2012, U.S. Customs and Border Protection ("CBP" or "Customs") finalized its new policy on post importation adjustments to the price of imported goods in a related-party setting, thereby opening the door for companies making such adjustments to realize significant duty savings if the adjustment results in a lower dutiable value. Customs initially proposed this policy change in December 2011 in an effort to make it easier for related parties to use transaction value when making post-importation adjustments based upon a written transfer pricing policy that is in accordance with IRS rules or an Advance Pricing Agreement ("APA").

In this article, Richard Abbey, Dan Wendt, Saskia Zandieh, Rocco Femia, and Marry Prosser discuss this new policy and the possible benefits it may bring.

Read related Miller & Chevalier alert.

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