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ARTICLE · 21 JANUARY 2020

Developments In China Customs' Retrospective Import Price Adjustment Mechanism

In 2018, the World Customs Organization (WCO) published a new edition of the Guide to Customs and Transfer Pricing.

ChinaInternational Law

Overview

In 2018, the World Customs Organization (WCO) published a new edition of the Guide to Customs and Transfer Pricing. The updated guide introduced a pending issue for international guidance in relation to Customs requirements and procedures for transfer pricing adjustment. This relies on national Customs Administrations to determine the corresponding Customs value or import price adjustment policy.

Where a Customs authority decides that a retrospective adjustment to the Customs value or import price is appropriate, it is necessary to determine the mechanism and calculation method to implement the adjustment in a compliant and effective way, since Customs' focus is on a transaction basis whereas transfer pricing is at entity level.

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