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Going global: US companies · Nov 9, 2026

A Chinese Furniture or Lighting Factory Selling to Its Own U.S. Company: Transfer Pricing, Customs Value and Section 1059A

Sales from a Chinese factory to its own U.S. company are related-party transactions. The IRS tests the price under §482, with 20% or 40% penalties on large adjustments; customs checks whether the relationship lowered the declared value; and IRC §1059A caps the purchase cost in inventory at the customs value. One documented price has to work for the IRS, CBP and China.

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Going global: US companies · Nov 9, 2026

U.S. Furniture Brands Paying Royalties to an Overseas Parent: 30% or 10% Withholding, and Do Royalties Belong in Customs Value?

Royalties a U.S. company pays a foreign affiliate for trademarks, brands or designs used in the U.S. are withheld at 30% by statute, usually 10% for a Chinese parent with a W-8BEN-E, and 30% for Hong Kong or Vietnamese companies. Royalties also drive transfer pricing, deduction timing and Form 5472, and when they are a condition of sale they may belong in customs value.

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