Shenzhen, one of China’s largest cities, earlier this year adopted Customs Notice [2022] No. 63, providing as a pilot program, a framework for local tax and customs authorities to collaboratively manage transfer prices used as import transaction values.
This framework is intended to eliminate any inconsistencies between the views of the two authorities and to provide greater certainty to multinational enterprises in the pricing of goods.
Yijun Liu of our Shanghai office deciphers the ins and outs of the customs notice in this brief.
