Customs Valuation, Related Party Transaction and Royalty and Licence Fee

Zhaokang Jiang
Sandler, Travis & Rosenberg
[email protected]

For the corporate world, a different customs value report by the importer of record results in different customs revenue and internal tax liabilities and capital flow. On the other hand, governments may take advantage of customs valuations in order to increase the importer's duty liabilities for revenue purposes. In developing countries, understanding and supporting procedures for customs valuation are technical and legal challenges that arise for the government and the international trade community. This is particularly true if customs valuation involves related party transactions or other technical issues such as royalties and license fees, which are the focus for customs valuation in Asian countries.