New BFH Ruling on Customs Valuation and Transfer Pricing in Intra-Group Transactions

• The BFH overturned a previous Munich Fiscal Court decision regarding customs value determination in cross-border transactions between related companies and referred the case back for further proceedings.
• The case centers on whether transfer prices used between related companies for customs declarations accurately reflect the correct customs value, especially when subsequent profit margins are significantly higher than agreed benchmarks.
• The customs office argued that unusually high profits indicated the transfer prices were too low and sought to adjust the customs value upwards.
• The Fiscal Court had previously ruled in favor of the plaintiff, stating the customs office did not sufficiently prove that the declared customs values were too low at the time of import.
• The decision is part of ongoing legal debate following the Hamamatsu case law on the interplay between customs valuation and transfer pricing.

Source: awb-international.com

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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