As part of the cooperation on Customs between Indonesia and the Netherlands, webinar on Customs Valuation and Transfer Pricing was organized in the end of January. Around 40 participants from the Indonesian Directorate General of Customs and Excise joined this interactive sharing of knowledge.
Proper valuation is invaluable. Value is a key concept of the work of Customs authorities, as it is one of the pillars on which the levy of customs duties is based. It is therefore very important for Customs authorities to have an insight into the correct transaction value of the goods, to ensure that the taxes that are levied and paid are correct. On the other hand, it is essential for businesses that import goods state the full and correct customs value in their declarations, thereby avoiding ex-post corrections and assessments.
Valuation is a complex issue – what is defined the full and correct value? For example, imported goods may not have purchased, but donated. Is a donation considered a transaction, and does it represent a certain value? Or what if the cargo is damaged during transport?
Transfer Pricing – the pricing of goods between related parties – also touches upon interconnecting elements. This webinar dived into these two topics, where Guusta Visser (Dutch Customs Attaché for Indonesia, Malaysia, Singapore, Thailand and Vietnam) and the National Valuation Team of the Netherlands Customs Administration shared their experiences with their colleagues in Indonesia. Facilitated by the Economic Team of the Embassy, this 3-day webinar provided a platform for Customs authorities from both countries to meet and exchange best practices.
