Not registered with SVB, What are the procedures?


 Update on 06th February, 2016: Click here: svb procedures.pdf


Not registered with SVB, What are the procedures?


We have started export import transaction with another firm which related and falls under Special Valuation Branch registration. But we have imported goods without registration. What are the procedures?


In case a related party is not registered with  Special Valuation Branch they are served a PD Circular (Provisional Duty Circular) along with a questionnaire to clarify their transaction process and the methodology adopted for valuation. At the time of filing of Bill of Entry for imports in the Appraising Group of Customs Import Department, the related importer is required to furnish a declaration about the relationship in the GATT declaration form. This does not include any restriction which may be imposed by law or any public authority, any restriction which limits the geographic area in which the goods may be resold or any restriction by the buyer which does not substantially affect the value of the goods and the valuation mechanisms provided hereunder are in order of hierarchy.


Reference to SVB is done with the prior approval of the Commissioner of Customs. Upon reference by the AG, the SVB investigates valuation of such related importer.  Special Valuation Branch thereafter registers a case and issues a PD Circular for provisional assessment. Copies of the case are issued to the importer and AG. The importer is required to indicate the PD Circular number at the time of provisional assessment of all their imports in the AG and execute PD Bond with 1% Extra Duty Deposit (“EDD”) on the assessable value of the goods. Along with the PD Circular a questionnaire is also issued to be filled up by the importer along with the list of all documents required to be submitted.  The importer is required to furnish complete reply to the questionnaire along with all the documents listed in Annexure thereto and explanations wherever required within 30 days of receipt of the questionnaire failing which the EDD is increased to 5% till the date of receipt of reply by the department.


Special valuation branch

On receipt of replies to questionnaire and other documents, the Special Valuation Branch examines the same and call for any other additional information that may be required. SVB decides within 7 days whether the importer has replied to the questionnaire substantively. Otherwise, immediate further information not furnished is sought before taking step for finalization of investigation. After furnishing all the information, the importer may, if he so desires or asked by the department, appears for personal hearing and explains his case with regard to the acceptance of transaction value or otherwise. An Order-In-Original is issued by the Deputy Commissioner, SVB and the same is intimated to the importer by registered post and copies are also endorsed to all AGs.  If the importer is able to furnish evidence of the transaction value of identical or similar goods in respect of sales to unrelated buyers in India at the same price, then there is no need for any reference to SVB and the BoE will be assessed finally based on those contemporaneous import values. If there are no contemporaneous imports, and there is no way to compare the values at the time of assessment of the BoE, then a reference is made to Special Valuation Branch.  No application or representation to the SVB directly by the importers will be considered. All references shall be made through the AG at the time of filing of the Bill of Entry. Traders who are importing the goods and selling them in the same condition as they are imported are supposed to furnish the invoice value, landed price, and their selling price in the Indian market. The difference between the selling price and landed cost should be properly explained. The order by SVB is passed based on the replies/documents furnished by the importer. If there is any suppression of fact or mis-declaration on the part of importer, necessary penal action will be taken separately in accordance with the provisions of law. provisional assessments pending in the AGs is subsequently finalized and EDD paid at the time of provisional assessment is adjusted in accordance with the SVB order.



In all further cases of loading, it then becomes mandatory for the importer to quote Order-In-Original number of SVB and indicate the percentage of loading at the time of filing of each BoE by the importer. Failure to do so is construed as a mis-declaration on the part of importer and is dealt under Customs Act.  The Order-In-Original issued by the SVB remains in operation for a period of three (3) years. If there is no change in the terms and conditions of the agreement or pattern of invoicing with the related party, the same shall be specifically stated by the importer in the form of an affidavit. Based on the examination of the submissions made, the SVB order issued in the past is renewed for a further period of three (3) years. In all cases where the importer is aggrieved by the order passed by SVB, he may file an appeal to the Commissioner of Customs (Appeals) of the respective jurisdiction. This right of appeal is also indicated in the preamble attached in the Order-In-Original. Conclusion According to the Rules, the valuation of the imported goods shall be considered when they are sold for export to India, after adjustment by valuation factors, subject to:Compliance with valuation conditions and Customs authorities being satisfied with the truth and accuracy of the declared value. It is pertinent for any company that is doing any business in India and is transacting with related party to register themselves withSpecial Valuation Branch. Nonregistration or non-conformity with the Rules or SVB circulars may even lead to higher EDD up to 5%. In effect the purpose of this registration is to establish that the valuation method employed by the related party does not create any discrimination between related and unrelated parties while determining prices


Special Valuation Branch, A simple tutorial

How to register with SVB?   
List of Documents required to be submitted in case of subsidiaries,collaboration agreement etc.
List of documents required to be submitted in case of sole agents, sole distributer etc under SVB.   
Questionnaire under Special Valuation Branch   
Method of customs valuation under Special Valuation Branch SVB   
Transaction value under Special Valuation Branch (SVB)   
Procedure for Renewal of SVB (Special Valuation Branch) order   
Criticism against Special Valuation Branch of Indian Customs   
Special Valuation Branch – Frequently Asked Questions   
Finalization of Special Valuation Branch (SVB) cases   
Customs procedures on Special Valuation Branch (SVB)   
Documents required to be submitted to SVB 
Who should register with SVB (Special Valuation Branch)   
Appeal on the orders of SVB    What is Section 14(1) of Indian Customs Act, 1962?   
Organizational Structure of Special Valuation Branch   
No EDD charges under SVB for EOUs/SEZs  
What is Rule 10 of Customs Valuation (Imports) explained?   
What is Rule 3(2) of the Customs Valuation (Determination of Value of Export Goods) Rules, 2007?   
What are the measuring rods included in Transaction value of imported goods?   
Rule 2(2) of the Customs Valuation (Determination of Value of Imported Goods) Rules, 2007   
Rule 2(1) of the Customs Valuation (Determination of Value of Export Goods) Rules, 2007   
Guidelines to Special Valuation Branch (SVB) as per Circular No. 11/2001-Cus., dated 23-2-2001 Indian Customs   
The format of PD Bond for Special Valuation Branch    
Circular No 50 dt 29th January 2009




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