Transfer pricing adjustment
Also called: TP adjustment · year-end adjustment
A change to intra-group prices made after import, often at year end, to bring results in line with the arm's-length principle used for income tax. Customs authorities may treat such adjustments as changes to the transaction value, leading to extra duty or refunds depending on the rules and the method used.
In practice
Linking transfer pricing policies to customs valuation in advance avoids both underpayment findings and lost refund opportunities.
EU
Türkiye
UK
USARelated terms
- Related parties
- Buyer and seller who are linked, for example through ownership, control, employment or family ties. Transaction value may still be used between them,…
- Transaction value
- The price actually paid or payable for goods when sold for export to the importing country, adjusted for items such as commissions, packing, assists,…
- Reconciliation (US)
- A US programme that lets importers flag entries for which certain information, such as final value, 9802 value or FTA eligibility, is not known at…