Advisory Services on Customs Valuation and HS Classification

Advisory on Customs Valuation & HS Classification

Customs Valuation and HS Commodity Classification Advisory Services

We provide professional advisory services on customs valuation and HS classification to ensure customs clearance stability in related-party transactions and to minimize tax risks.

특수관계자 거래의 통관 안정성 확보와 조세 리스크 최소화를 위한 전문적인 관세평가 및 HS 품목분류 자문 서비스를 제공합니다.

Consulting Areas

Advisory Services on Customs Valuation and HS Classification

Advisory Services on Customs Valuation and Related-Party Transactions

As global supply chains grow increasingly complex, transactions with overseas related parties have become a critical area where customs clearance stability and tax risks converge for businesses. Particularly as multinational corporations diversify their production and sales structures, the importance of transfer pricing analysis and proactive price management to demonstrate that related-party transactions did not influence import prices continues to rise.

Accordingly, establishing preemptive and post-action response systems for customs valuation, transfer pricing, and ACVA (Advance Customs Valuation Arrangement) is essential for minimizing corporate risk and ensuring customs clearance stability.

The Korea FTA Origin Research Association Inc., a group of Korea's top customs and trade experts specializing in customs valuation and related-party transactions, provides the following professional advisory services related to customs valuation, transfer pricing, and ACVA:

글로벌 공급망이 복잡해지면서 해외 특수관계자와의 거래는 기업의 통관 안정성과 조세 리스크가 집중되는 핵심 영역이 되었습니다.
특히 다국적기업의 생산·판매 구조가 다양해질수록 특수관계가 수입가격에 영향을 미치지 않았다는 점을 입증하기 위한 이전가격 분석과 사전적 가격관리의 중요성은 더욱 커지고 있습니다.

이에 따라 관세평가·이전가격·ACVA(Advance Customs Valuation Arrangement, 특수관계자 과세가격 사전심사)에 대한 사전·사후 대응 체계를 구축하는 것이 기업의 리스크 최소화와 통관 안정성 확보에 필수적입니다.

(사)한국FTA원산지연구회는 관세평가 및 특수관계자 거래 분야에 정통한 국내 최고 수준의 관세·무역 전문가 그룹으로서, 관세평가·이전가격·ACVA와 관련하여 다음과 같은 전문 자문 서비스를 제공합니다.

Customs Valuation (Arm's Length Price Analysis for Related-Party Transactions) Advisory

Advice on applying for First Sale Rule for companies exporting to the United States

Review of arm's length prices based on functional, risk, and asset analysis of import transactions

Analysis of appropriate taxable prices under WTO Agreement on Customs Valuation, including resale price method and cost-plus method

Review of related-party pricing policies, profit structures, cost allocation methods, and assessment of potential price distortions

Advisory on post-adjustment, provisional pricing application, additional duty risks, and mitigation strategies

Transfer Pricing and International Taxation Advisory

Support for preparing domestic and international transfer pricing documentation (Local File, Master File, etc.)

Analysis of transfer pricing and customs impacts during structural reorganizations like supply chain restructuring

Calculation of arm's length prices and economic analysis for special transactions (financial transactions, royalties, service fees, etc.)

Support for strategies to resolve double taxation through tax refund claims and respond to tax/customs investigations

ACVA Application Strategy and Response

Review transaction structures and pricing policies through pre-diagnosis, defining potential issues in advance

Support ACVA application preparation, transfer pricing analysis report structuring, and responses to customs inquiries

Practical response including attendance at customs on-site audits and Customs Valuation Advisory Committee hearings, and submission of statements

Post-approval support: annual report review, price management system establishment, and design of strategies for post-adjustment and provisional pricing utilization

The Korea FTA Origin Research Association Inc. provides optimal solutions to ensure customs clearance stability and minimize tax risks for corporate transactions with related parties. This is based on accumulated practical experience in customs valuation, transfer pricing, and ACVA, as well as a network of specialized customs brokers.

Advisory Services on HS Classification

The HS commodity classification serves as the core norm for international trade order, establishing criteria for FTA origin determination, tariff rates, import requirements/technical regulations, duty drawback, post-clearance audits and investigations, statistics, and trade policy.

Inappropriate HS commodity classification exposes import/export companies to the following regulatory risks

Additional customs duties, value-added tax (VAT), and surcharges

Increased risks of FTA origin verification

Violations of import requirements and certifications (e.g., MFDS, environmental, KC certification, strategic goods)

Improper application of duty reduction, duty drawback, and tax support systems

Therefore, the HS is a core trade infrastructure that determines a company's international competitiveness, import/export stability, and FTA utilization strategy.

The Korea FTA Origin Research Association Inc., a leading domestic customs and trade research and consulting organization specializing in customs valuation, FTAs, and origin rules, provides systematic advisory services in the HS field as follows:

Expert HS Commodity Classification Review and Advisory Services

• Detailed analysis of the nature, composition, function, technical characteristics, manufacturing process, and intended use of import/export goods
• Expert review based on HS General Rules, HS Tariff Schedule, WCO Interpretative Guidelines, domestic and international precedents, and authoritative interpretations from customs authorities worldwide
• Policy and technical classification support for major industrial sectors (steel, chemicals, machinery, electronics, automotive, bio, materials industries, etc.), analysis of applicability for strategic goods and safety regulations

Support for HS disputes, post-clearance audits, and litigation

• Analysis of customs amendment notices and post-clearance audit issues
• Preparation of classification grounds and opinion statements for administrative appeals and litigation
• Pre-review of potential conflicts with other regulations such as technical regulations and strategic goods

Application strategy and response for Pre-clearance review (Customs Valuation and Classification Institute)

• Support in compiling technical data, composition data, and functional data required for submission
• Definition of classification issues and design of optimal argument structure
• Agency services for applying for U.S. Customs and Border Protection (CBP) Binding Rulings and EU Binding Tariff Information (BTI)

Customs Valuation and HS Commodity Classification Advisory Services

Customs Valuation and HS Commodity Classification Advisory Services

Professional Consulting

Advisory Services on Customs Valuation and Related-Party Transactions

Customs Valuation (Arm's Length Price Analysis for Related-Party Transactions) Advisory

Transfer Pricing and International Taxation Advisory

ACVA Application Strategy and Response

Advisory Services on HS Classification

Inappropriate HS commodity classification exposes import/export companies to the following regulatory risks

Expert HS Commodity Classification Review and Advisory Services

Support for HS disputes, post-clearance audits, and litigation

Application strategy and response for Pre-clearance review (Customs Valuation and Classification Institute)

Korean Study Group on the FTA Rules of Origin