Event report

Past event| Customs valuation and transfer pricing adjustments : where do we stand in ASEAN in 2022?

Thank you to our  speakers Arnaud Fendler, Attorney at Laws at DS Avocats and Stéphane Lacaille-Vizier, Tax Director SAPMENA at L'Oréal for this informative discussion around transfer pricing adjustments and customs valuation.

Key takeaways:

  • Acceptability and recognition of reliability of transfer prices for customs valuation purposes remain fragile in ASEAN
  • Limited number of ASEAN countries implement a specific customs valuation mechanism designed to deal transfer pricing and/or retrospective or prospective adjustments -> variable between countries -> difficult for one MNE to implement a regional strategy on this topic
  • The existing mechanisms offer a relative framework designed to deal with anticipated adjustments. However, none of them provides security in case of unanticipated transfer pricing adjustments
  • Need of additional guidance and securing mechanisms for compliant businesses

Best practices:

  • Inclusion of customs considerations/risks in transfer pricing method determination process and adaptation for ASEAN countries with additional complexity
  • Preparing customs adapted documentation regarding transfer pricing, to sustain its reliability for customs value purposes
  • Securing customs valuation and transfer pricing retrospective adjustments allocation processes with an advance ruling / specific authorization, when available
  • Organize with customs brokers the collection of import data in order to allocate transfer pricing adjustments to imported goods

For more information, please contact Vanessa Hobbs vhobbs@fccsinagpore.com

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