ICC’s Statement on Misuse of Customs Valuation Databases: Foreshadowing the Future Use of CbC Reporting Data?

People worrying about the upcoming use, misuse (and likely abuse) of CbC reporting data by tax authorities may be interested by this one…

The International Chamber of Commerce recently stated:

“The International Chamber of Commerce (ICC) has released a policy statement on the Misuse of Customs Valuation Databases at a global meeting of customs valuation officials this week in Brussels.

While acknowledging that Customs valuation databases can provide a useful tool for risk assessment, ICC is concerned about the increasing number of countries that use these databases in violation of the World Trade Organization (WTO) regulations by setting reference or minimum prices for import declarations.

Contributing to the deliberations in the biannual meeting of the World Customs Organization’s (WCO) Technical Committee on Customs Valuation taking place in Brussels this week, the ICC statement highlights that the misuse of databases is increasingly leading to delays, uncertainty and higher trade costs for businesses trading internationally. Adherence to international rules and regulations – by both governments and businesses alike – is vital for an environment that fosters cross-border trade and investment, particularly for SMEs which are often disproportionately impacted by higher trade costs.

The ICC policy statement cites several country examples in which WTO members were using valuation databases to set reference and minimum prices – a practice prohibited by Article 7 of the WTO Customs Valuation Agreement.”

The complete communiqué is available here.

The Policy Statement “Misuse of Customs Valuation Databases” is available here.

Robert Robillard, Ph.D., CPA, CGA, MBA, M.Sc. Econ.
Senior Partner, DRTP Consulting Inc.
514-742-8086; robertrobillard “at” drtp.ca

The convergence of DRTP Consulting’s tax, accounting and economics expertise makes a difference. The information in this blog post is general information only. Data and information come from sources believed to be reliable but complete accuracy cannot be guaranteed. DRTP Consulting Inc. or the author are not responsible or liable for any error, omission or inaccuracy in such information. The opinions expressed in this blogpost are those of the author. Readers should seek advice and counsel from DRTP Consulting Inc. as required.

Posted by drtp On 2 November 2015