Transfer Pricing

How to Record IC Duty Drawback Recharges

Allocating the service fees for managing duty drawback claims on behalf of an international subsidiary.

Account NameTypeDebit ($)Credit ($)
Customs Consulting ExpenseDebit1,800.00-
Intercompany PayableCredit-1,800.00

💡 Accountant's Note

Charges for the administrative labor and expertise provided by the HQ customs team to recover taxes for the sub.

Practitioner & Systems Framework

💻 ERP Architecture

Post against customs duty accounts in the global trade management (GTM) module.

⚠️ Audit Flags

Fees that exceed the actual duty recovered or common third-party customs broker rates.

📄 Required Documentation

Time sheets for customs specialists and evidence of successful drawback claims.

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Expert Analysis by Qusai Ahmad

General Accountant Supervisor & IFRS Specialist

Specialized in SAP GUI automation and Middle Eastern tax compliance. Building digital tools for the next generation of finance leaders.

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