A retroactive change in the related party transfer price (TP) of imported goods necessitates a corresponding adjustment to the customs value declared to the Australian Border Force (ABF).
Australian businesses engaged in the import of goods from related party suppliers have an obligation to disclose any retroactive TP adjustments to the ABF if the adjustments impact the cost of goods sold (COGS) i.e., the customs value of the goods originally declared at the time of import.
The first step is to apply for a valuation advice (VA) ruling from the ABF and/or submit a voluntary disclosure to the ABF. A VA ruling is the more valuable option (and the one the ABF recommends) as it will not only cover past TP adjustments but also TP adjustments made over the next five years, thus making the annual disclosure process more streamlined.
Importantly, the disclosure requirements apply regardless of whether the TP adjustment increases or decreases the TP of the goods and regardless of whether the goods are subject to customs duty.
Source Deloitte
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