COMPANIES that make transfer pricing adjustments after reporting importation to customs will not get refund, according to a recent ruling given by the Tax Tribunal of Korea. Multinational companies now require being on alert when establishing import prices. Entering pre-importation arrangements with Korean customs authorities to ensure that they don't suffer losses is presently the best deal for multinationals. Utilization of the Advance Customs Valuation Arrangements (ACVA) system can be the best protective armor for multinational companies.

Taxpayers can also find some relief in the news that customs laws and transfer pricing regulations will be reviewed to promote harmony of transfer pricing from coporate tax and customs dutiy. Korea is not the only country that is having disputes between transfer pricing and customs duties. Countries like the US are also toying with the idea of post-importing adjustments to improve harmonisation.