Intercompany Transactions

Intercompany Transactions

  • INTERCOMPANY TRANSFER POLICY

      QUESTION:   Is anyone willing to share their intercompany transfer pricing policy for customs purposes? In an effort to reduce costs in garment production, we are looking to make “commitments” to utilize fabric from the fabric mills. The fabric would be used by multiple vendors for multiple garment styles. The vendors will actually purchase […]

  • 3RD PARTY PURCHASE ORDERS

    I just found out today that my company based in the USA, is opening purchase orders on behalf of our related Mexico company. The USA places an order with a foreign supplier and instructs the foreign supplier to ship directly to Mexico. At this point I am unaware if my company in the USA will […]

  • Intercompany Transactions Q&A 1

    Would someone explain the basic concept of the accounting and tax reporting premises for intercompany accounts? I used to work for a company where all intercompany accounts were ‘prepaid’ for export purposes (terms being CIP, CPT, etc.) I was always told this was for tax reporting purposes. A few months after I left I heard […]

  • Intercompany Transactions Q&A 2

    Related parties valuation – we recently became a public company. Our accounting auditors have always helped determine intercompany pricing with our 18 sister companies. As far as I can ascertain, Customs valuation laws or “test” were not part of the picture. I have to present, to my VP Finance, what acceptable related party valuation means […]

  • Intercompany Transactions Q&A 3

    I recently attended a seminar with a colleague which included a breakout session on Valuation. We have a disagreement on our interoperation. We manufacture product in our U.S. plant and truck inventory up to our related Warehouse in Canada, who in-turn sell the mdse to our Canadian customers. There is no monies exchanged and it […]

  • Intercompany Transactions Q&A 5

    I have been working on fair valuation for imports from our foreign subsidiaries. I have always been under the impression that the Regs spell out the values allowed (price pd/payable, deductive, computated, etc etc.). However during an internal meeting someone brought up valuation based on a certain ‘tax code’. What is this? Can we set […]