Transfer Pricing and Customs Valuation of Know-How Transfer Agreements

Journal
International
International Transfer Pricing Journal 2018 (Volume 25), No. 6
This article explains the treatment of transfer pricing and the customs valuation of know-how transfer agreements from a supply chain management perspective. When third companies transfer their know-how to related companies that are involved in cross-border transactions, the paid value for having used the know-how could be taxed at the end with customs duties and other import taxes (e.g. import VAT).