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Warmly welcome to join this highly interesting half day seminar together with PwC. The main topics of

the seminar will be transfer pricing and customs, covered in four different talks. Following the main talks,

a panel discussion about concerns in managing the customs valuation challenge on transfer pricing will

be held. Further down in this invitation you can find more details regarding each topic and speaker.

This event is organized by the Finnish Business Council in Shanghai with all of the other Nordic Chambers.

Time: Friday, September 4th, 2020, at 08:30 - 11:45

Venue: Shanghai Innovation Center, 3/F, No.168 Hu Bin Road, Shanghai, China

Price: This event is free for SwedCham Members.

Read more about the agenda and speakers down below.


Interim Duty Rate (IDR) Application in China

IDR is a preferential tariff treatment given by the Chinese government to facilitate the importation, upgrade the industrial structure as well as benefit peoples' living standard. For example, the product subject to IDR will enjoy like 0% or only a half of the normal Most Favoured Nation Duty Rate (MFN). In 2020, over 850 products obtain the IDR, especially for these of high-tech, high quality and high demand in China market. The application procedure is standard and conduced by China customs annually.

Alex Qian, a Worldtrade Management Service Partner at PwC, will introduce recent policy, procedure and hot topics of IDR application in China, as well as some case sharing for your reference.

New Exploration and Prospect of Customs Valuation with regard to Transfer Pricing

Customs valuation challenge on transfer pricing has always been a focus from a lot of MNCs. Especially, with Customs' reform to set up the Duty Collection Center for performing the industry based management on import price, leveraging the resource from audit division for strengthen the post screening in transfer pricing declaration, it became more and more important for the MNCs to understand the view from China Customs on transfer pricing and prepare for the challenge.

Asta Nie, PwC WMS partner will share the new progress of Customs' theoretical exploration and valuation practice with respect to transfer pricing and the practical tips for the company to prepare and deal with challenge.

TP strategy and implementation from a new (Customs) perspective

TP in the past has been in the exclusive purview of tax authorities as taxpayers only needed to fight single-way to manifest their TPs have generated more than enough profit in China. More audits and interventions by Customs especially on taxpayers' import transactions with related parties have ushered in a new era in which the taxpayers need to maintain a more delicate balance between their Corporate Income Tax risks and Customs risks. More, the Customs' aggressive stance applied in subjecting taxpayers' royalty to import taxes have only increased exponentially the complexity of taxpayers' defence.

How to re-strategise their TPs to ensure they are defendable from both TP and Customs perspectives will bring tremendous benefits to the sustainability of taxpayers' intra-group supply chain and mitigate the future Customs audit costs.

TP technique in Customs valuation defence

Despite having their own conceptual frameworks, TP and Customs do share some roots in deriving reasonable pricing policies for import transactions. Taxpayers however needs to be careful that the analysis they have constructed for their TP justification will not backfire on their customs defence given more and more often the Customs have borrowed taxpayers' TP analysis and used it against the taxpayers.

Moreover, the more granular perspectives (sometimes to brands or SKUs) and different profit margin indicator (i.e., Gross Margins) may also render taxpayers' current TP analysis to be paralysed in defending against Customs' challenges, and will require TP/economic analysis to be considered.



Sponsors and Partners

Corporate Gold Partners

A special thanks to our Corporate Gold Partners for supporting the Swedish business community in China.


Corporate Silver Partners