U.S. Customs and Border Protection ("CBP") on May 30, 2012 issued the long awaited ruling definitively revoking Headquarters Ruling Letter 547654 which imposed a limitation on the use of "Transaction Value" in related party transactions subject to post-importation adjustments.
The revocation follows CBP's formal notice of proposed rulemaking issued on December 28, 2011 which outlined a framework permitting post-entry adjustments to transaction value in related party transactions where the transfer price had been "fixed or determinable under an objective formula" prior to importation as qualified by five specific criteria.
