The interplay between customs and transfer pricing regulations is becoming a significant challenge for companies with international operations.

This topic takes on particular importance in the context of global political action, as it has a direct impact not only on the tax policies of countries, but also on the strategic decisions of companies – such as the reorganisation of capital groups, the location of shared service centres, the relocation of production or the structure of intellectual property – as well as on transfer pricing policies. Although the two fields have different objectives – tax (safeguarding the interests of the state) and customs – these issues are often treated separately within companies, even if they concern the same transaction.

This can lead to inconsistencies in approach and financial and operational risks, including: questioning the arm’s length nature of the prices charged, over-estimation of taxable income resulting in double taxation, imposition of duties, sanctions against directors or other persons responsible for the execution of a transaction.Additional challenges include changes in remuneration, retrospective rebates or transfer pricing adjustments – which may be assessed differently by tax and customs authorities.