New developments linking transfer pricing and customs

Making transfer pricing policies effective for income tax and customs is a frustrating problem for taxpayers. Recent developments, however, provide useful guidance on utilizing transfer pricing methodologies to support customs valuation. This webinar will discuss how to effectively deal with these rules, including key changes in government approach, criteria required to obtain duty refunds related to transfer pricing adjustments, and avoiding IRC 1059A traps.

Presenters, Karen King and Kristine Price

Karen King is a member of Ernst & Young LLP's Customs and International Trade practice in New York. Karen has considerable experience assisting clients in assessing import processes, identifying risks, establishing internal controls and providing guidance to improve customs compliance. She has worked with a number of clients in various industries to prepare for participation in government programs such as the US Customs Importer Self-Assessment Program (ISA) and the Customs-Trade Partnership Against Terrorism (C-TPAT). Karen has participated in ISA Application Review Meetings and C-TPAT validations with US Customs. In addition, Karen has assisted several clients in designing and performing annual ISA testing.

Karen also has considerable experience with strategic planning projects, advising clients on customs valuation planning, strategic sourcing and utilization of preferential trade programs. She has presented internal and external training sessions on regional free trade agreements, and she has performed NAFTA compliance reviews in both the US and Mexico. In addition, Karen has participated in import process reviews for multinational clients in Russia, Europe and Latin America. Karen also has led projects to coordinate global customs policies and procedures manuals. She has experience in providing customs advice to clients in a variety of industries including pharmaceutical, retail, equipment and machinery, chemicals, and energy.

Karen is a licensed US Customs broker and a member of the New York chapter of the Organization of Women in International Trade. Karen graduated cum laude from Duke University with a B.A. in Economics and Spanish. Karen is fluent in Spanish and has a basic knowledge of Russian.

Kristine Price is a principal in Ernst & Young LLP's Customs and International Trade practice. With over 15 years in the international trade industry as an attorney and consultant, Kristine's broad range of experiences includes advising clients on global duty reduction strategies, sourcing and supply chain planning, implementing special customs regimes and free trade agreements, as well as customs valuation planning.

Kristine often leads multinational teams to help clients design and implement global import structures, processes and compliance enhancement programs. Her advice spans initial market entry planning to specific business structures, process mapping, gap analysis and application of leading practices to corporate operations.

Kristine has led the development of global risk assessment tools for clients to monitor customs internal controls and reduce risks on an ongoing basis. Kristine's experiences include extensive work with internal audit teams, providing training to personnel, development of audit plans, outsourced internal auditing and/or subject matter support during audit activities. Kristine has guided many clients through application and successful approval into customs programs such as the Importer Self Assessment Program (and led a client symposium on leading practices in doing so).

Kristine has co-chaired multiple Ernst & Young Global Customs Management Symposiums where she facilitated workshops of global participants from multinational importers/exporters to address topics such as Strategic Trade Planning, Adding Value to the Supply Chain, and Global Risk Assessment and Monitoring. Kristine co-authored the reports Doing more with less, Bringing strategic value to trade management and Global Customs Risk Management, an examination of leading practices.

Kristine's work related to the coordination of customs valuation and transfer pricing has been recognized through various industry presentations and published articles.

Kristine has an active US Foreign Trade Zone practice. She has helped direct more than two dozen foreign trade zone projects to approval. In doing so, Kristine has established strong working relationships with the Foreign Trade Zones Board, Department of Commerce, and Bureau of Customs and Border Protection. She is nationally recognized in the area of foreign trade zone taxation matters.

Kristine received her BS, summa cum laude, from Stephen F. Austin State University, and her JD, summa cum laude, from Texas Tech University. She is a member of the State Bar of Texas, National Association of Foreign Trade Zones (NAFTZ) and the American Association of Exporters and Importers (AAEI).