The Italian tax and customs agencies are expected to issue by the end of February 2015, a joint statement of practice addressing the issue of reconciling declared customs values with adjustments based on a transfer pricing policy.
The purpose will be to align customs and transfer pricing valuation methods.
In Italy, the tax and customs agencies generally have adopted different approaches to valuation. Typically, transfer pricing adjustments have been made retroactively, after the importation of goods. However, Italian customs offices have not formally recognized transfer pricing policies and documentation in determining the customs valuation of imported goods. In fact, the Italian Supreme Court issued a decision holding that, under certain circumstances, a transfer pricing policy cannot be used for customs valuation purposes.
However, due to increased cross-border transactions, the connection between transfer pricing policies and customs valuation appears to be converging, with the tax and customs authorities indicating they intend to address this issue soon.
Read a February 2015 report [PDF 256 KB] prepared by the KPMG member firm in Italy: Transfer pricing and customs valuation team up