U.S. Customs and Border Protection (CBP) has announced that, effective July 30, 2012 new rules apply to importers into the United States on the treatment of the import value between related parties and post-importation adjustments. Under the new policy:
- Importers into the United States can use the transaction value method of valuation under certain conditions (this is the simplest method to apply)
- Importers must make post-importation adjustments, either up or down, to the declared value
- A transfer pricing study is important to establish arm's-length pricing.
Affected exporters may be required to enroll in the CBP’s reconciliation program to handle their post-entry adjustments.
For more information, contact your KPMG adviser.