February 04, 2024
Discount for customs purposes? On one condition

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The Israel Customs Authority does not seem to be a fan of discounts. It appealed against the judgement of the District Court, in which the court clarified that the Customs Authority cannot, on the one hand, rely on the fact that the price is subject to a condition (discount) that cannot be assessed and the transaction price is therefore invalid, and, on the other hand, base the assessment on the transaction price but without the condition. Let's take a look at what the Supreme Court had to say in this dispute. The disputed amount is about ILS 5 million (~1.3 million Eur).
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Year-end transfer pricing adjustments and the customs value
11-02-2024

Customs value and transfer pricing could be likened to Siamese twins - that's how closely linked they are. Let's discuss some practical questions related to the year-end transfer pricing adjustments: If the price is revised upwards, does the importer have to go to customs and pay additional duties? If the price is revised downwards, is the importer entitled to a refund of duties? If the goods are duty-free and there is no excise duty, but only import VAT (which is deductible in any case)?

Omer Wagner

valuation
en
icon
Year-end transfer pricing adjustments and the customs value
11-02-2024

Customs value and transfer pricing could be likened to Siamese twins - that's how closely linked they are. Let's discuss some practical questions related to the year-end transfer pricing adjustments: If the price is revised upwards, does the importer have to go to customs and pay additional duties? If the price is revised downwards, is the importer entitled to a refund of duties? If the goods are duty-free and there is no excise duty, but only import VAT (which is deductible in any case)?

Omer Wagner

valuation
en, lt
icon
Impact of the war in the Middle East on customs valuation
07-01-2024

Israel has been in a state of war for the past three months. This war has had an impact on international trade, particularly on customs valuation, including for importers in other countries such as the EU, as explained in more detail in this article.

Omer Wagner

valuation
en, lt
icon
Impact of the war in the Middle East on customs valuation
07-01-2024

Israel has been in a state of war for the past three months. This war has had an impact on international trade, particularly on customs valuation, including for importers in other countries such as the EU, as explained in more detail in this article.

Omer Wagner

valuation
en
icon
Customs valuation and transfer pricing – understanding similarities and differences (II)
17-12-2023

Editors’ note: In this second part of the article, the author highlights the similarities and differences between customs valuation and transfer pricing and emphasises that the requirements may differ for the same goods. He also outlines the solutions used by customs in different countries. For example, the Canada Border Services Agency considers the transfer price to be the ‘uninfluenced’ price paid or payable for imported goods if a written transfer price agreement exists between a vendor and a related purchaser and is in effect at the time of importation.

Rizwan Mahmood

valuation
en
icon
Customs valuation and transfer pricing – understanding similarities and differences (II)
17-12-2023

Editors’ note: In this second part of the article, the author highlights the similarities and differences between customs valuation and transfer pricing and emphasises that the requirements may differ for the same goods. He also outlines the solutions used by customs in different countries. For example, the Canada Border Services Agency considers the transfer price to be the ‘uninfluenced’ price paid or payable for imported goods if a written transfer price agreement exists between a vendor and a related purchaser and is in effect at the time of importation.

Rizwan Mahmood

valuation
en
icon
Customs valuation and transfer pricing – understanding similarities and differences (I)
17-12-2023

Editors' note: In November, the European Commission published the news 'New transfer pricing rules to make life easier for businesses in the EU'. The new rules are necessary to address several challenges, including the competing objectives of customs and tax authorities, which lead to double compliance requirements. The problem is global. According to the Corporate Tax Association of Australia (CTAA), 'it is unacceptable for a business to be required to satisfy two arms of the same government, one demanding a higher price and the other a lower price in respect of the same transaction'. In this first part of the article, the author provides an overview of the rules and methods of customs valuation and transfer pricing.

Rizwan Mahmood

valuation
en
icon
Customs valuation and transfer pricing – understanding similarities and differences (I)
17-12-2023

Editors' note: In November, the European Commission published the news 'New transfer pricing rules to make life easier for businesses in the EU'. The new rules are necessary to address several challenges, including the competing objectives of customs and tax authorities, which lead to double compliance requirements. The problem is global. According to the Corporate Tax Association of Australia (CTAA), 'it is unacceptable for a business to be required to satisfy two arms of the same government, one demanding a higher price and the other a lower price in respect of the same transaction'. In this first part of the article, the author provides an overview of the rules and methods of customs valuation and transfer pricing.

Rizwan Mahmood

valuation
en, lt
icon
Transfer pricing - EU law
12-11-2023

Transfer pricing is a rule that was designed in international taxation to establish which part of the income within a multinational enterprise needs to be allocated between two companies in the same group if they have a transaction between them. The rule, in general, is that they need to act as if they were third parties in order to establish the third-party price. Transfer pricing is important for determining the customs value of goods.

valuation
en, lt
icon
Transfer pricing - EU law
12-11-2023

Transfer pricing is a rule that was designed in international taxation to establish which part of the income within a multinational enterprise needs to be allocated between two companies in the same group if they have a transaction between them. The rule, in general, is that they need to act as if they were third parties in order to establish the third-party price. Transfer pricing is important for determining the customs value of goods.

valuation
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