The financial impact of the COVID-19 pandemic, coupled with former President Donald Trump’s widespread use of sweeping tariffs and customs duties as a policy tool, has critically disrupted supply chains while also driving up import costs. One significant challenge for multinational enterprises has been how to mitigate the effects of the fluctuations in the prices of imported goods from a customs perspective. The global pandemic has forced multinational enterprises to reassess previous transfer-pricing policies and consider making compensating adjustments to bring their intercompany transfer price for goods into an acceptable arm’s-length range, often retroactively. In most situations, these compensating adjustments must be reported to U.S. Customs and Border Protection (CBP).
Source The Tax Adviser