Insurers' journeys to build a mastery in the IoT usage
Customs Valuation and Transfer Pricing
1. WTO, Customs Valuation and
Transfer Pricing
Points to discuss:
What is the WTO?
GATT Art. VII
Brussels Definition of Value
Customs Valuation Agreement
Transaction value
Related Parties
Transfer Pricing
The ping pong game
2. The WTO
Corner stone of the Multilateral Trading
System with agreements covering 3 areas:
Trade in goods
Trade in services
Trade related intellectual property rights
And a dispute settlement system to enforce them!
4. Understandings
Multilateral Agreements on:
Agriculture
Sanitary and
Phytosanitary measures
Safeguards
Technical Barriers to Trade
Trade-related investment
measures
Antidumping
Customs Valuation
Preshipment inspection
Rules of origin
Import Licensing Procedures
Subsidies and
countervailing measures
Marrakesh Protocol
GATT 1994
1A
Multilat.
Trade
Agrs. on
Goods
WTO Multilateral Trade Agreements on Goods
5. Value not always required!
To levy a duty, it is normally necessary to know 3 things:
HS Nomenclature
Tariff
treatment
A duty
6. • 5%
Ad valorem
• $5 per kg
Specific
• 10% + $2 per kg
Compound
• 10% or $2 per kg, whichever is higher
Mixed
• 8.3% + EA MAX 18.7% + AD S/Z
“Technical”
Type of duty Example
Types of duties
7.
8. Transaction Value Method
Identical Goods TV Method
Similar Goods TV Method
Deductive Value Method
Computed Value Method
Fall Back Method
Customs Valuation Methods
9. 1. Price
actually
paid or
payable
2. For the
goods
3. When
sold for
export
4.
Adjusted
(Art. 8)
“CV of imported goods shall
be the transaction value”
Transaction Value
ONLY those in Article 8 are allowed!