Related Parties

Related Parties

  • Direct Ship

      QUESTION:   Our company is a multi-national with an entity in Venezuela, as well as many other countries.  It so happens that the contract for one of our key raw materials is between our US entity and a company in Belgium.  We need to write a PO to this Belgium company, and have them […]

  • Related parties by virtue of ownership

    Question: Where US Company A (the parent) owns US Company B (a subsidiary) and Foreign Company C (also a subsidiary): *When US Company B imports goods from Foreign Company C, we understand that these companies would be considered related parties by virtue of ownership of both by US Company A *When US Company B exports […]


    Question:I would like to ask the membership the following questions. My company (Company X) purchases goods from a related party in Canada (Company Y); a contract manufacturer who only produces for our company in the US. Company Y is a registered Canadian entity, and they own the goods until the finished prodcuts passes into the […]

  • Related Party Drop Shipments

    Question:I was wondering about other Importer’s documentation processes who drop ship goods to their US customers from foreign related parties. Is it common for there to be two commercial invoices, one showing the transfer pricing between the releated parties for customs purposes, and the other reflecting the cost to the US customer (placed on the […]


    Question: Recently I was doing a review of imports from one of our divisions that has been importing goods from Canada for some time, and found something of concern. Originally, the unrelated Canadian shipper and their US counter part handled all the importations into the US. A few years ago, my firm assumed the responsibility […]


    Question: Does anyone have a template or worksheet that is used on a regular basisto perform a related party pricing study by the customs department.  Iam looking for something that can be used for imports into US, China,Canada, and EU.  If you have any additional information or guidelines forrelated party pricing for these countries, that […]


    Question: My company has a manufacturing site in the UK that produces finished goodsand then imports them via transfers to our facility in the US for sales toour customers.  We are considered as one company and no sales takes placewhen the product is imported.  We have been using the cost of manufacturingthe goods as our […]


    I would truly appreciate the group’s review and suggestions for where/how I may obtain necessary information on the following scenario: Parent company issues a purchase order for goods from France for intended sale into Mexico; duties significantly reduced due to free trade agreement between EU & Mexico. Goods deliver and are stored in a bonded […]


    Our company recently received an invoice from a related company, billing us for additional value above and beyond the original established transfer price. The invoice involves over a 1000 part numbers. I need some guidance in how to handle these with regards to value. Please provide CFR and another references that I can show management

  • Related Parties Q&A 1

    Scenario: 1. A man who owns a foreign corporation sets up another corporation in the U.S. The foreign corporation supplies the U.S. corporation but neither corporation has an equity interest in the other. My understanding is that the U.S. corporation would state that the two are related when acting as IOR because of common ownership. […]