Compliance Updates
Customs Value – Transfer Pricing Adjustments
16th July, 2020
Clients whose import prices are based on a Transfer Pricing arrangement should be aware of a potential compliance issue associated with end of financial year.
In certain transfer pricing arrangements, an adjustment is made at the end of the financial year that increases or decreases prices of the imported goods to achieve a desired margin.
If this adjustment is retrospective and changes the price of goods already imported, then the customs value declared at the time of importation is no longer correct. The Customs Value is required to be adjusted and the amount of duty recalculated. This may result in an additional duty payment or duty refund depending on the adjustment.
Please do not hesitate to contact your Southern Cross Customs Team should you need any assistance with your compliance in this area.
