Customs

The International Chamber of Commerce (ICC) has welcomed a new World Customs Organisation (WCO) Guide to Customs Valuation and Transfer Pricing which includes ICC proposals for more coherent tax and customs revenue collection.

Released as part of a new WCO Revenue Package, the new guide provides concrete guidance on revenue collection to governments around the globe and aims to harmonise revenue collection between customs and tax authorities.

It is designed to be accessible to both experts and non-experts and explores the linkages and possibilities for Customs to use transfer pricing information to examine international transactions within a multinational group.

ICC has long called for governments to address the major challenges that businesses face due to discrepancies between the customs valuation approach - based on the WTO Valuation Agreement - and the 'arm's length principle' for profit tax purposes approach based on the OECD Transfer Pricing Guidelines.

In response to rising concerns within the business community, ICC has identified seven innovative and pragmatic solutions based on convergence to secure, clarify and simplify transfer pricing and customs valuation rules gathered from customs experts from businesses worldwide.

Vanessa De Saint Blanquat (MEDEF), who led the joint work of the ICC Commission on Taxation and the ICC Commission on Customs and Trade Facilitation, said: "The frequent disparities between customs and tax regulations result in significant difficulties for international business and trade flows. Tax and customs examinations should result in the same value determination - this is in the interests of all concerned. ICC is therefore thrilled that its recommendations are incorporated in the WCO Guide."

Story by : Riaan de Lange