INTERNATIONAL PRICE PROFILING SYSTEM © (IPPS)
The "International Price Profiling System" (IPPS) is a risk-based analysis
system that evaluates the risk characteristics of prices related to international trade transactions.
It may be employed to evaluate transactions that have a risk of being related to money laundering,
terrorist financing, income tax evasion, and import duty fraud.
Money is moved across borders through false invoicing of import or export transactions. Money is moved out of a country by under-invoicing exports or over-invoicing imports. Money is moved into a country by over-invoicing exports or under-invoicing imports.
The IPPS evaluates an international trade price based on four (4) different filters.
The statistical filters are calculated from 12 months of international trade transaction data as reported by the United States Department of Commerce.
The IPPS analysis evaluates an international trade price and produces a "Risk Index" that may range between "-4" and "+4". A negative "Risk Index" reflects the potential of money being moved out of the United States to a foreign country. A positive "Risk Index" reflects the potential of money being moved into the United States from a foreign country. The magnitude of the "Risk Index" reflects the probability or likelihood that a price is over-valued or under-valued, and is determined in the following manner:
IPPS User's Guide
To view/download the user's guide for the web based IPPS, click here.
For information on IPPS pricing please contact Interntional Trade Alert at firstname.lastname@example.org
To subscribe to the web based IPPS, click here.
|CHARACTER-BASED ANALYSIS - COUNTRY, PRODUCT AND CUSTOMS DISTRICT RISK PROFILES|
The analysis of the U.S. trade data base will assist financial institutions with identifying trade financing
transactions that should be investigated in more detail. The analysis of the U.S. trade data base may assist
in evaluating six of the eleven red flags listed in the FFIEC Examination Manual.
Various risk profiles can be determined by evaluating recent U.S. international trade transactions such as:
Country Risk Index ©: A risk profile of every country in the world, based on the most recent 12 month abnormal pricing history in the country’s international trade
Product Risk Index ©: A risk profile of every product classification, based on the most recent 12 month abnormal pricing history of that product
U.S. Customs District Risk Index ©: A risk profile of every U.S. Customs District based on the most recent 12 month abnormal pricing history of transactions in the customs district
Each risk index is based on the analysis of every U.S. import and export transaction, for all products, countries, and U.S. customs districts. The analysis is based on the Internal Revenue Service’s 482 Transfer Pricing Regulations which define arms-length pricing in international trade. The risk indices are updated every month as new U.S. trade data is released to the public.
|US TRADE REPORTS||View Sample Trade Reports|
International Trade Alert, Inc. produces detailed commodity and country trade reports. Our commodity reports analyze the imports and exports of any commodity between the United States, or any U.S. Customs District and every country in the world. Commodity export and import reports contain details on the quantities, dollar values, market share, and average price of the commodity for each country. They also contain each country's "price index" a unique statistic that reflects the relative price of the commodity imported from or exported to a country as compared to the price of the commodity imported from or exported to the world. International Trade Alert, Inc. also produces country reports that contain the same information for every commodity traded between the United States and any country.
Our trade reports are based on the most current information available and generally reflect a two or three month time lag. Monthly, year-to-date and annual trade reports are available in hard copy and on floppy disks. International Trade Alert, Inc. also has the capacity to produce customized international trade research reports for your organization.