Who should register with SVB (Special Valuation Branch)

Posted on 06 April 2023 Category : SVB

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

Who should register with SVB (Special Valuation Branch)

Parties fall under Special Valuation Branch (SVB)

This post is one of the series of posts explaining in detail about Special Valuation Branch (SVB). I have tried to include maximum information about Special Valuation Branch (SVB) in these articles in simple language. Hope, these articles suffice you to get complete information about Special Valuation Branch of Indian Customs department.

This post explains about the parties required to be registered with SVB (Special Valuation Branch). Who has to register with Special Valuation Branch? Who is the parties fall under special valuation branch SVB?

Let the party be Importer, Exporter, Buyer, Seller, legal person, sole agent or sole distributor or sole concessionaire, if they are:

a. officers or directors of one another's businesses;
b. employer and employee
c. legally recognized partners in business
d. directly or indirectly owns, controls or holds 5 per cent or more of the outstanding
voting stock or shares of both of them
e. one of them directly or indirectly controls the other
f. directly or indirectly controlled by a third person
g. together they directly or indirectly control a third person
h. members of the same family
i. those who have collaboration Agreement
j. those who have technical Agreement.
k. those who have any other contract or agreement with the foreign supplier, such parties fall under Special Valuation Branch (SVB).

Importers who are related to the supplier in terms of 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, and those cases which fall under the purview of Section 14(1) of the Customs Act, 1962, are required to register with SVB. 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, reads as above.

The Special Valuation Branch of that Custom House, which is located proximate to the Head or Corporate Office of the importer (having special relationships etc. with the suppliers), handles the investigation into valuation of such importer. Wherever in the declaration prescribed under the Customs Valuation (Determination of Value of Imported Goods), Rules, 2007 (hereinafter referred to as "Valuation Rules, 2007"), the importer has himself made an averment that the transactions are between related persons in accordance with Rule 2(2) of the Valuation Rules, 2007, and there is a, prima facie, justification for further enquiry, the concerned case of import is referred to the SVB of the concerned Custom House, where a separate case file is opened and a registration number is assigned to the case. Similar reference to SVB to look into valuation on account of special relationship can be ordered by Commissioner concerned where such relationship comes to light on any intelligence or while enquiring into transactions of any importer with a particular supplier.

A prima facie case exists for investigation by the SVB where the importer is not able to provide evidence to the effect that the price has not been influenced by the relationship or where the importer is not able to demonstrate that the price for the said goods closely approximates to one of the following values ascertained at or about the same time –

(i) the transaction value of identical goods, or of similar goods, in respect of sales to unrelated buyers in India;

(ii) the deductive value for identical goods or similar goods; and

(iii) the computed value for identical or similar goods.

All cases to be registered in the SVB for special investigation should be with the specific approval of the concerned Commissioner of Customs.

Where the imports requiring investigation by SVB are noticed in a Custom House or Customs formation other than Chennai, Kolkata, Delhi, Bangalore or Mumbai Custom House, all the relevant records should be forwarded to the SVB of the concerned

Custom House that would take up the investigation of the case after following the provisional assessment procedure.

As per guidelines of Special Valuation Branch (SVB), The term "person" also includes legal persons and Persons who are associated in the business of one another in that one is the sole agent or sole distributor or sole concessionaire, however described, of the other shall be deemed to be related for the purpose of these rules, if they fall within the criteria of this sub-rule”.

This post is one of the series of posts explaining in detail about Special Valuation Branch. I have tried to include maximum information about Special Valuation Branch (SVB) in these articles in simple language. Hope, these articles suffice your needs to get complete information about Special Valuation Branch of Indian Customs department.

Would you like to add more information about parties involved to be registered with Special Valuation Branch (SBV)? Share below your thoughts about Special Valuation Branch of customs (SVB).

Special Valuation Branch, A simple tutorial

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Rakesh More: On 03 February 2020 How to get SVB copy for my Organization

Who should register with SVB (Special Valuation Branch)

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