Glossary

Transfer pricing is a rule that was designed in international taxation to establish which part of the income within a multinational enterprise needs to be allocated between two companies in the … same group if they have a transaction between them. The rule, in general, is that they need to act as if they were third parties in order to establish the third-party price. Transfer pricing is important for determining the customs value of goods.

Intrinsic value for commercial goods is the price of the goods themselves when sold for export to the customs territory of the Union, excluding transport and insurance costs, unless they are … included in the price and not separately indicated on the invoice.

“Customs value“ of imported goods on the international scale means the value as determined in accordance with the Agreement on Implementation of Article VII of the General Agreement on Tariffs … and Trade 1994 (WTO Agreement on Customs Valuation).

The customs value primarily bases on the transaction value of imported goods, which is the price actually paid or payable for the goods when sold for export to the country of importation, plus, … certain adjustments of costs and charges.