Intangible assets and customs valuation

Abstract

This paper focuses on determining the customs value of intangible assets by using a transactional profit split method. In this paper we explain how to determine the customs value of related inter-company transactions; summarise the relationship between the arm's length principle and customs valuation; explain how the customs value of intangible assets can be determined by using a profit split method; and discuss the developments related to reconciliation of customs valuation with transfer pricing and the proposed solutions.