“Related parties” refers to relationships between entities that have a close connection, such as family members, subsidiaries, or companies under common control. In the context of import value declaration to U.S. Customs and Border Protection, related parties are significant as they can influence the declared import value. Transactions between related parties often involve intercompany transfers, where the price of goods may be influenced by internal agreements rather than market forces. Customs authorities closely scrutinize such transactions to ensure that the declared import value reflects the true value of the goods. Proper documentation and adherence to transfer pricing regulations become crucial in accurately determining the import value and ensuring compliance with customs regulations to prevent any attempts to manipulate or understate the value of imported goods.

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