Intercompany Business Transaction [HELP]

[yobaba]

I have been working on 'Intercompany Business' and i had a few questions on this topic which i hope would be answered here.

Consider an organisation with a Sales Plant In Asia ( CC2 ) and a Producing plant In Europe (CC1) , ie different company-code , within the same organisation. When a customer places the order to CC2 , the order is sent to the CC1. CC1 receives this order produces the product and then delivers the Product directly to the customer and sends an Inter-company invoice to CC2 , which inturn sends the customer Invoice to the customer.

Hence, since the CC1 is delivering the product to Asia , it needs to provide Export /Import documents, which includes an Invoice.

My question here is :
1. What kind of Invoice ( Customer Invoice / IC- Invoice) should be provided at the Customs at the receiving Port ?
( & / or , What kind of Inovice should the CC1 send with the delivery of the product ? )

Looking forward to your reply,

Thank you

 

[MacGyverS2000]

This should be asked of your customs agent...

Dan - Owner

http://www.Hi-TecDesigns.com

 

[Compositepro]

A pro forma invoice is for customs purposes.

http://en.wikipedia.org/wiki/Pro_forma

 

[racookpe1978]

It depends on where the "top of the company" wants to declare its profits (usually for tax purposes and for customs fees purposes - which are also taxes), and what top-level impact that company wants for its publicity and labeling, particularly if the final product is sols to the government or military. Sometimes the "count" is for number of pieces, places of final assembly, cost of the pieces, cost of the highest piece, total cost excluding overhead, ownership of the company, includes packaging, excludes packaging, etc.

"American-owned" or "assembled in America" are often printed in big letters for a product that is more expensive on the shelf, even if the parts themselves are "Made in China" ...

Corporate legal and financial control this issue.

 

[GregLocock]

I strongly suggest you talk to YOUR company legal people and customs agent. Depending on the industry, and the countries, and the items, you could end up with a situation where your company incurs heavy unnecessary costs or massive delays at the customs, or both.

Cheers

Greg Locock


New here? Try reading these, they might help FAQ731-376

http://eng-tips.com/market.cfm?

 

[TomDOT]

You need an expert in this field of finance/business, which is a specialty called "transfer pricing." You should not be asking a bunch of engineers. Just like you should go to a lawyer for legal advice (and preferably one with a specialty in your problem).

Said transfer pricing expert will be able to guide the company through the most advantageous arrangement.