Transfer Pricing and Customs Valuation Overlap: Is It Possible to Bridge Two Worlds?

Importation of a good from a distinct and legally separate entity of the same group company is regarded as related party transaction.Such a case is treated as a risky transaction by both for customs and revenue administrations because of possibility of influenced price declared by the company.For a long while WCO and OECD, as supra national bodies, have strived to find a deal between these two separate worlds but, unfortunately, a definitive approach could not be developed yet.The existence of two sets of rules and two different administrative bodies dealing with income taxes and customs duties, make crossborder trade overly complicated and costly.In this paper, after evaluating significance of the problem a response is intended to discuss for the question of "how could customs valuation and transfer pricing overlap be reconciled by considering favor of the whole stakeholders?"