Similar to the World Trade Organization (WTO) Customs
Valuation Agreement, the Korean Customs Act provides that if the
seller and buyer are related parties, the transaction value is
examined in order to verify whether the special relationship
affected the transaction value, and in the case the special
relationship did have an effect on the transaction value,
subordinate methods have to be applied while rejecting the
transaction value in the customs valuation. The method of
verification, such as the 'analysis of circumstances of
transaction' and 'test price method', is used in order
to verify whether the special relationship affected the transaction
value. The 'analysis of circumstances' refers to an
examination of the circumstances of sale, and the special
relationship is viewed as not having effect on the price under some
circumstances such as where the price of the relevant goods is
determined using the pricing method ordinarily adopted by the buyer
and the seller
