Customs has recently published draft rules which it proposes inserting under sections 40 and 41.  The draft rules provide guidance on how to adjust a bill of entry when transfer pricing impacts the customs value declared.

The draft rules define a ‘transfer pricing adjustment’ to be “… an adjustment to the price at which goods were imported into the Republic by a multinational enterprise from a related party.”

In terms of the draft amendments, where an exporter has made a transfer pricing adjustment to an invoice through either the issuance of an amended invoice or a debit or credit note, the importer must give written notice (“notice”) to SARS of the adjustment.  However, before notifying SARS, the importer must “obtain the latest data in relation to all bills of entry affected by the transfer pricing adjustment” from SARS’s Department of Trade Statistics.  The draft rules go on to list the information and various documents which must be submitted to SARS in support of the notice.

Where the transfer pricing adjustment results in duty and VAT becoming payable to SARS, such payment must be made to SARS against a Customs and Excise Billing Declaration form, which will be generated for the importer by SARS.  Where the transfer pricing adjustment results in a refund due to the importer, a voucher of correction, reflecting a refund amount and a refund indicator, must be submitted to SARS by the importer.

Comments on the above draft rules must be submitted to SARS on or before 3 October 2025.  For more details on the above, please visit our website www.wylie.co.za.