We can help you manage the customs impact of transfer pricing adjustments.
Customs is often overlooked when considering transfer pricing issues. Doing so can result in lost refund opportunities and compliance risk for your business. While customs valuation focuses on the price paid for individual consignments, transfer pricing more often looks at consolidated profits over a period of time. The differences between the two valuation methods are great and it should never be assumed that a company's transfer price will be accepted as an arm's length customs value.
However, where the values are aligned and related parties effect a transfer pricing adjustment by altering the amount paid for goods, royalties, license fees or research and development, it is likely that the adjustment will also alter the customs value of those goods.
Our Customs and Global Trade lawyers have experience working with transfer pricing teams within large accounting practices. This means we are well positioned to help importers manage the customs impacts of a transfer pricing adjustment.
We can assist you with:
- Obtaining transfer pricing valuation rulings from the Department of Immigration and Border Protection;
- Advising on what adjustments will have a customs impact;
- Developing strategies to divorce transfer pricing from customs valuation;
- Making voluntary disclosure of past adjustment;
- Applying for customs duty refunds; and
- Drafting procedures and providing training to enable clients to manage the impact of future adjustments internally.
Through our participation in the Transfer Pricing Rules and Customs Valuation Working Group our team is well connected with senior Australian Taxation Office, Department of Immigration and Border Protection and Department of Treasury officials who consider transfer pricing issues.
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