The FINANCIAL — ICC has welcomed a new World Customs Organization’s (WCO) Guide to Customs Valuation and Transfer Pricing which includes ICC proposals for more coherent tax and customs revenue collection.
Released this week 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 harmonize revenue collection between customs and tax authorities, according to ICC.
Available in English and French, the guide 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.”
WCO Secretary-General, Kunio Mikuriya, said: “I take this opportunity to thank ICC for the valuable insights provided to the WCO in preparation of the new Guide to Customs Valuation and Transfer Pricing. We share ICC’s view that closer cooperation and coordination between customs and tax authorities, and with the business community, are key factors for further progress in this area. We recommend this Guide to all in the business community and look forward to continuing our fruitful working relationship with ICC and business.”
Donia Hammami, Executive in Charge of ICC Policy on Taxation, Customs and Trade Facilitation said: “The world business organization applauds the leadership of the WCO to harmonize existing customs and tax approaches which will help reduce legal uncertainty, trade costs and the risk of penalties, while at the same time reduce the risk of double taxation that can seriously hamper cross-border trade and investment. ICC will continue to encourage the Organisation for Economic Co-operation and Development and the United Nations to work towards further coherence of tax and customs administrations.”