Integrating Customs Duties and Transfer Pricing: Strategies for International Supply Chain Compliance

• Companies face challenges in aligning customs and transfer pricing policies in international markets
• Inconsistencies can lead to tax, operational, and financial risks
• Collaboration between customs and transfer pricing departments is crucial for managing risks and ensuring compliance
• Key considerations include aligning documentation, identifying relationships, ensuring relevant benchmarking, and incorporating customs duties
• Trade wars and changes in customs policy create uncertainty and challenges for international corporate groups
• Companies must monitor and adapt transfer pricing policies to reflect new tariff rates and address customs-related matters in agreements
• Changes in margins, supply routes, or economic functions may require reassessment of functions, risks, and assets
• Consulting experts is advisable for tailoring strategies to the evolving regulatory landscape
• Increases in customs tariffs can affect profitability and may require transfer pricing adjustments to align with the arm’s length principle

Source: mddp.pl

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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