Declared import prices below customs’ database “market prices” — and the company receives a price consultation invitation. Fail to prove it, and the declared value is rejected and tax reassessed.
What is price consultation?
When customs doubts the declared value (abnormally low versus its price database), it invites the company to a consultation to explain. This is not yet a tax assessment — it is the company’s chance to prove the declared price is the real transaction value. Skipping it or explaining unconvincingly leads customs to reject the declared value and assess the taxable value under valuation methods (per the WTO Customs Valuation Agreement and the Export/Import Tax Law 107/2016/QH13).
What documents should the company prepare?
- Sales contracts (including price-adjustment appendices), commercial invoices.
- Bank payment records — matching the invoice amount exactly is the strongest evidence.
- Insurance and freight documents (establishing Incoterms).
- Proof that any related-party relationship did not affect pricing: quotes to independent customers, group global pricing policy.
- Explanations for low prices: promotions, samples, bulk purchases, clearance of old stock.
What if the value is rejected?
Companies may appeal the valuation assessment. Long term: standardize payment documentation (100% bank transfers matching invoices), avoid cash or convoluted offsets that are hard to evidence, and consider advance valuation rulings for recurring related-party transactions.
Frequently Asked Questions
Parent-company prices below market — automatically rejected?
No. Related-party deals face closer scrutiny, but arm's-length proof (transfer pricing documentation) plus matching actual payments keeps the value accepted.
Is price consultation a penalty decision?
No. Consultation clarifies doubt. Only unexplained cases lead to valuation assessment decisions (and back tax).
Are group intercompany offsets accepted as payment proof?
Harder to evidence than direct payment. Offset agreements, detailed reconciliations and bank records of underlying transactions are needed to convince customs.
This article has been quality-reviewed by the FLAW AI Legal Council