When Honda's U.S.manufacturing subsidiaries purchase parts from Japan,customs authorities in the United States have the right to scrutinize the transfer price to make sure it is a fair reflection of market value.

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Customs authorities in the United States, as in many countries, have the right to scrutinize the transfer prices of goods moving across borders within a company (such as between subsidiaries of a multinational corporation like Honda) to ensure these prices are a fair reflection of market value. This is to prevent tax evasion or avoidance through the manipulation of transfer pricing.