Related parties: impact on MVE valuation

What are related parties in foreign trade

Two persons are considered related when one controls the other, both are controlled by a third party, or a significant commercial dependency exists. Art. 68 of the Customs Law establishes specific criteria: partners or associates, employer-employee, one person owns 5% or more of the other's capital, both controlled by a third party, or family members.

Why it matters in the MVE

When a relationship exists, customs authorities may suspect the transfer price does not reflect market value. This does not mean you cannot use transaction value (Method 1), but you must demonstrate the relationship did not influence the price.

How to prove the price is acceptable

The importer can demonstrate that the related-party price is acceptable using Art. 68 LA tests: (1) compare with transaction value of identical goods sold to unrelated buyers, (2) compare with deductive or computed value, or (3) demonstrate transfer prices comply with OECD guidelines.

Required documentation

• Current transfer pricing study (mandatory for tax purposes)
• Comparability analysis with unrelated party transactions
• Corporate group transfer pricing policy
• Evidence prices are consistent with market (quotations, tenders)
• Explicit relationship declaration in MVE with value justification

How Camtom handles related parties

Camtom automatically detects related-party relationships from the registered corporate structure and generates corresponding MVE sections. The system requests supporting documentation and attaches it to the operation's electronic file.