WCO Guide to Customs Valuation and Transfer Pricing>Tax Consultant Kenya

For Customs valuation purposes, import transactions between two distinct and legally separate entities of the same MNE group are treated as ‘related party transactions’. Such transactions may be examined by Customs to determine whether the price declared for the imported goods is ‘influenced’ by the relationship. In other words, is the price at which the goods have been sold at a lower level than it would have been had the parties not been related and the price had been freely negotiated?

WCO Guide to Customs Valuation and Transfer Pricing