Internal Revenue Code Section 1059A:
Limitation on taxpayer's bais or inventory cost in property imported from related persons
Location in U.S. Code: Title 26A, Chapter 1-O, Part IV
Sec. 1059A. Limitation on taxpayer's basis or inventory cost in
property imported from related persons
(a) In general
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.
(b) Customs value; import
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.