26 U.S.C. § 1059A
Section 1059A · Limitation on taxpayers basis or inventory cost in property imported from related persons
Amended 1 time on record
Applied in 1 court decisions — leading case 27 F. Supp. 2d 229 - United States v. Shabahang Persian Carpets, Ltd. (1998)
Most recently applied in 27 F. Supp. 2d 229 - United States v. Shabahang Persian Carpets, Ltd. (October 1998)
If any property is imported into the United States in a transaction (directly or indirectly) between related persons (within the meaning of section 482), the amount of any costs—
(1) which are taken into account in computing the basis or inventory cost of such property by the purchaser, and
(2) which are also taken into account in computing the customs value of such property,
shall not, for purposes of computing such basis or inventory cost for purposes of this chapter, be greater than the amount of such costs taken into account in computing such customs value.
For purposes of this section—
(1) Customs value
The term “customs value” means the value taken into account for purposes of determining the amount of any customs duties or any other duties which may be imposed on the importation of any property.
(2) Import
Except as provided in regulations, the term “import” means the entering, or withdrawal from warehouse, for consumption.
Editorial notes U.S. Code · Office of the Law Revision Counsel
Effective Date
Section 1248(c) of Pub. L. 99–514 provided that: “The amendments made by this section [enacting this section] shall apply to transactions entered into after March 18, 1986.”