The Munich Tax Court ruled that transfer pricing adjustments made after the accounting period should not affect customs valuation if it is unclear whether there will be adjustments or if they will go up or down when the customs declaration is made. The court also criticized the customs administration for treating retroactive year-end TP adjustments with double standards. This ruling is in line with a 2017 case that went to the Court of Justice of the European Union. The Munich case still has to face appeal proceedings in the German Federal Fiscal Court. The handling of retroactive TP adjustments in customs valuation in other countries remains to be seen and may be discussed at customs-tax forums.
Source Leonardo Macedo
See also ECJ – C-529/16 Hamamatsu – Customs valuation and transfer pricing