Mitigating risk at the intersection of Customs, VAT, and Direct Tax.
Are your "Add-ons" correctly apportioned? Avoid penalties under UCC Art. 71.
Application of the transaction value (Method 1) is not automatic. In intercompany flows, we must prove the relationship did not influence the price.
Acceptable only if there is a "Sale for Export" and the price is not distorted by the relationship (Test Values).
Deductive: Backwards from EU resale
price.
Computed: Cost of production + profit. Essential for
complex supply chains.
We bridge the gap between OECD (Direct Tax) and WCO (Customs) guidelines. The misalignment often triggers audits.
| TP Adjustment Type | Customs Impact (WCO) | Strategic Action |
|---|---|---|
| Upward (Debit Note) | Undervaluation Risk | Voluntary Disclosure (Ravvedimento) to pay delta duties without full penalties. |
| Downward (Credit Note) | Duty Overpayment | Refund Claim (Art. 116 UCC). Requires "Formula Pricing" clause in contract (Hamamatsu). |
Assists (Apporti): Molds, tools, and engineering/design work done outside the EU and provided free of charge to the producer must be added to the customs value.
Royalties: Dutiable only if they pass the "Condition of Sale" test. We review license agreements to exclude reproduction rights and buying commissions.