Import of Goods Between Affiliate Companies in the Russia – Kazakhstan – Belarus Customs Union

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By Bettina Wisthaler

While for imports between non-related companies, the invoice is usually sufficient as the main source for the calculation of the customs value. But for imports between affiliated companies, customs require additional confirmation of the value of goods. This is due to the fact that in the past, parent companies often tried to support their subsidiaries by invoicing lower values in order to save on customs duties and import VAT.

Nowadays, affiliation needs to be indicated even in the declaration of the customs value which is part of the customs declaration of goods. Additional confirmation should be provided in form of a price list stamped by the Chamber of Commerce of the exporter’s country, the export declaration and the official order confirmation. The situation becomes more complicated when the exporting company is not selling only to its subsidiary but also to other distributors in the Customs Union.

In this case, different prices have been registered in the customs database for the same product with the price for the subsidiary being usually the lowest. This kind of pricing policy often leads to corrections of the customs value and delays in delivery if previously not taken into account and prepared properly.

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