The Supreme Administrative Court of Lithuania initiated a preliminary reference procedure at the EU Court of Justice to determine the application of the transaction value method in a situation where the final price is not known at the time of accepting the customs declaration.
Provisional prices and retrospective adjustments in the context of transfer pricing has been a subject of ongoing debate. The CJEU decision in the Hamamatsu case did not provide clarity on this subject. Instead of bringing clarity, it gave rise to more questions. In the Hamamatsu case, the court stated that if transfer prices are subject to retroactive price adjustments not known at the time of the importation, they cannot be used as a basis for determining customs value under the transaction value method.
