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| Transfer Pricing |
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| This is an issue
that affects all multi-national Direct Sellers in most countries
and importing into New Zealand is no different. |
| The Customs Department
will want to see that the imported value is the real price when
the product is being transferred to this country. This prevents
dumping, under payment of GST and where tariffs apply under payment
of these. |
| If you pay royalties on sales volumes back to a parent company over and above
the transfer price used when importing, then you need to be aware
that this may be considered by Customs as something that should
have been including in the actual transfer price. (Some test
cases have been both won & lost on this issue) |
| As many countries
like the U.S. have strict laws on Transfer Pricing for products
going out of the U.S. most multi-national Direct Selling Companies
should have systems already in place to comply with the New Zealand
Customs requirements. The Inland Revenue has issued Guidelines
on the issue of Transfer Pricing which is viewable on their web site.
This should be discussed with your accountant |
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