Questions and Answers 
 
Q: How do I proceed with inter-company pricing if we own the foreign operation?
 
A: You should treat your own company as any distributor.

They have to make money and you have too. Some companies want to sell to a lower price to prevent high duties. Some other ones want to keep the profit at home.

Note however that the local authorities have a saying. You have to use market pricing. If you sell at too low cost to your own company, the local authorities can add extra duty or indicate you are dumping. The latter can have severe consequences for you. Ask for advice if you are not sure.
 

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