This webinar discusses the latest trends in customs valuation and transfer pricing. It will cover topics like ad valorem tariffs, customs valuation rules on royalties, the interaction between customs valuation and transfer pricing according to the WCO and OECD, the impact of transfer pricing adjustments on customs valuation transaction value, how transfer pricing documentation can impact customs valuation, and how export prices and customs valuation data are handled in blockchain trade systems. Reference materials on these topics from the WCO, OECD and EU will also be provided. The webinar aims to help understand challenges where customs valuation and transfer pricing intersect.

1. Webinar – Monday, Dec 3, 2018 / Leonardo Macedo
Customs valuation and Transfer Pricing - Latest Trends
Presenter: Leonardo Macedo - https://www.linkedin.com/in/macedoleo/
Contact: Leonardo.Macedobr@gmail.com

2. Webinar Main Points:
•Ad Valorem Tariffs and WTO Customs Valuation rules;
•WCO Customs Valuation latest instruments on royalties
and adjustments;
•WCO/OECD interaction between Customs Valuation and
Transfer Pricing;
•Transfer Pricing retroactive price adjustments and Customs
Valuation Transaction Value - CJEU Hamamatsu case
(C-529/16);
•Transfer Pricing documentation parameters - issues to
Customs Valuation;
•Export prices and Customs Valuation data in DLT
(blockchain) trade systems
Webinar – Monday, Dec 3, 2018 / Leonardo Macedo

3. Customs valuation and Transfer Pricing - Latest Trends
Reference Material
• WCO Customs Valuation Compendium. Available at: http://wcoomdpublications.org/valuation.html
• WCO Guide to CV and TP 2018. Download at: http://www.wcoomd.org/-
/media/wco/public/global/pdf/topics/key-issues/revenue-package/wco-guide-to-customs-valuation-and-
transfer-pricing.pdf?la=en
• OECD Secretary-General Report to G20 Leaders, Buenos Aires, Argentina December 2018.
Download at: http://www.oecd.org/tax/beps/oecd-secretary-general-tax-report-g20-leaders-argentina-dec-
2018.pdf
OECD Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations 2017.
Download at: http://www.oecd.org/tax/transfer-pricing/oecd-transfer-pricing-guidelines-for-multinational-
enterprises-and-tax-administrations-20769717.htm
•Transaction Value - CJEU Hamamatsu case (C-529/16); Download at: https://eur-lex.europa.eu/legal-
content/EN/TXT/?uri=CELEX%3A62016CJ0529

4. • 5%
Ad valorem
• $5 per kg
Specific
• 10% + $2 per kg
Compound
• 10% or $2 per kg, whichever is higher
Mixed
• 8.3% + EA MAX 18.7% + AD S/Z
“Technical”
Tariffs

5. Valuation Systems: ASP e BDV
Alexander Hamilton (1789-95)
1st United States Secretary of the Treasury
Debts, National Bank, Tariffs on Imports, Excises
American System (economic plan)
Tariffs, National Bank, Federal Subsidies
American Selling Price (ASP)
Chemicals, rubber footwear, canned clams
and knitted woolen gloves
CCC Brussels Definition of Value (BDV)
Adopted 1953 under the GATT Principles
CCC/WCO Valuation Committee
Compare one thing in terms of another
CIF definition, Notional concept “would fetch”
Time, Place, Quantity, Price and Level

6. GATT 1947 Art. VII
Related Parties Exclusion
Webinar – Monday, Dec 3, 2018 / Leonardo Macedo
Did you know?
Interpretative notes, Ad Article VII from Annex I
2. It would be in conformity with Article VII, paragraph 2 (b), for a
contracting party to construe the phrase “in the ordinary course of trade …
under fully competitive conditions”, as excluding any transaction
wherein the buyer and seller are not independent of each other and
price is not the sole consideration

7. GATT Kennedy Round (1963-67), Tokyo Round (1973-79) , Uruguay
Round (1986-94) and WTO (1995)
Kennedy, John F.: campaign button
Button from John F. Kennedy’s 1960
U.S. presidential campaign.
GATT Codes
Customs Valuation Code
Optional / Not popular
GATT Agreements
Customs Valuation Agreement
Marrakesh – WTO
Customs Valuation Agreement
Mandatory

8. Customs and Tax
Administrative Structures, HR, IT
Webinar – Monday, Dec 3, 2018 / Leonardo Macedo

9. Customs Valuation 1950 to 1994

10. WTO /OMC
1A
Multilat.
Trade
Agrs. on
Goods
1B
GATS
1C
TRIPS
2
Dispute
Settlem.
Undst.
3
Trade
Policy
Review
Mech.
4
Plurilat.
Agrs.
Marrakesh Agreement Establishing the World Trade Organization
WTO 1995

11. GATT/WTO CVA
GATT 1947 – 1994
1979 Customs Valuation Code
Optional
WTO 1995
Customs Valuation Agreement
(CVA) - Compulsory
Webinar – Monday, Dec 3, 2018 / Leonardo Macedo

12. 1. Price
actually
paid or
payable
2. For the goods
3. When sold
for export
4. Adjusted
(Art. 8)
Transaction Value

13. WTO Disputes – Customs Valuation

14. WTO CVA – Related Parties
Examine Sale
Webinar – Monday, Dec 3, 2018 / Leonardo Macedo

15. WTO CVA – Test Values
Identical or Similar ?
MNE´s TP Documentation to Examine Sale
Webinar – Monday, Dec 3, 2018 / Leonardo Macedo

16. WTO Agreements
OMC Acordos
Transfer Pricing
Customs Valuation

17. WTO Agreements
OMC Acordos
Arms Length Principle

18. CV – TP Key Challenges
• TP Documentation Should Be Customs Friendly;
• TP Data dialogue - Customs Data
• Hard-to-Value Intangibles (WTO CVA Adjustments Art.8 / BEPS Action 8)
and Financial Sale Aspects (Interests, Entity loans, Related Services)
• Advance Pricing Agreements (APAs) (Tax and Customs MoUs)
• Advance Rulings for Customs Valuation (Customs and Tax)
• Year-end TP Adjustments – Upwards or Downwards (Customs
consequences) (EU Case C-529/16 Hamamatsu Photonics Deutschland
GmbH)
Webinar – Monday, Dec 3, 2018 / Leonardo Macedo

19. G20/OECD BEPS Project

20. WCO Relevant Instruments
Webinar – Monday, Dec 3, 2018 / Leonardo Macedo
ANNEX VI :TECHNICAL COMMITTEE ON CUSTOMS
VALUATION – CASE STUDY 14.1
USE OF TRANSFER PRICING DOCUMENTATION WHEN EXAMINING
RELATED PARTY TRANSACTIONS UNDER ARTICLE 1.2(a) OF
THE AGREEMENT

21. CV / TP – Comparison Table
Webinar – Monday, Dec 3, 2018 / Leonardo Macedo

22. Auditor - Leonardo Macedo - Leonardo.Macedobr@gmail.com / https://www.linkedin.com/in/macedoleo/
Global Value Chains (GVCs) and Ad Valorem Tariffs

23. Customs valuation and Transfer Pricing - Latest Trends
Thank you and all the best on you CV – TP studies!
Leonardo Macedo
Leonardo Macedo worked as a technical officer at the World Customs
Organization, providing technical assistance on customs valuation,
tariffs and trade facilitation matters. During this time, he was also
involved in customs valuation (royalties, software and transfer pricing)
discussions with other international organizations, such as the WTO
and the OECD.
He holds a master in economic law and bachelors´ in law and
economics. He is a PhD fellow in international trade law at Maastricht
University.
Leonardo is currently a judge at the administrative tax - customs court
based in Brasilia.
https://www.linkedin.com/in/macedoleo/
Leonardo.Macedobr@gmail.com