(U.S. Customs & Border Protection) In related party transactions, this is the price charged by one part of an organization for a product or service provided to another part of the firm. The way the transfer is calculated or concluded may result in overpricing import transactions between related companies in different countries for the purpose of transferring profits or revenue out of a country to evade taxes. Under present law, importers may not claim a transfer price for U.S. income tax purposes which is higher than or not consistent with the value they claim for Customs purposes. In the U.S., Customs does not have access to tax information from the Internal Revenue Service for use in its civil investigations. In determining the appraised value of imports between related parties, Customs may demand documentation from the importer of record to verify the declared value and may access the importer’s books and records. Customs can request information using Customs Request for Information Form, or during a compliance assessment, or by issuing a summons.
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