Special Valuation Branch; Frequently Asked Questions

Posted on 06 April 2023 Category : SVB

Special Valuation Branch – Frequently Asked Questions

What is SVB (Special Valuation Branch)?

The Special Valuation Branch is a unit of Customs department formation, who specialized in investigating the transactions between the importer and supplier including special features like Technical collaboration between parties, joint ventures etc. Click here to read Special Valuation Branch, A simple tutorial

What is the main function of SVB Special Valuation Branch?

The Special Valuation Branch makes sure that the relationship between the parties involved in the transaction has not influenced the invoice value of imported goods.

We have Collaboration Agreement, Technical Assistance Agreement or any other agreement/ contract with the foreign supplier. Should we need to be registered with Special Valuation Branch?

Yes, if you have Collaboration Agreement, Technical Assistance Agreement or any other agreement/contract with the foreign supplier, you need to be registered with Special Valuation Branch . Also read List of Documents required to be submitted in case of subsidiaries,collaboration agreement etc. Also read : List of Documents required to be submitted in case of subsidiaries,collaboration agreement etc.

What are the ports handling Special Valuation Branch (SVB) in India?

Mumbai, New Delhi, Chennai, Kolkata and Bangalore are the ports handling Special Valuation Branch. Also read :Organizational Structure of Special Valuation Branch

How many special valuation braches are available for SVB?

At present, SVB branches operated functioning from 5 ports, Mumbai, New Delhi, Chennai, Kolkata and Bangalore. Special Valuation Branch is also functioned under the administrative control of the respective commissioner of customs. Also read Organizational Structure of Special Valuation Branch

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, what is the procedure?

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.

Who are the team of Customs under Special Valuation Branch?

Additional Commissioner of Customs heads Special Valuation Branch. A team consists of Deputy/Assistant Commissioner of Customs, Appraising Officers, Executive Officers and necessary Ministerial Staff assist Additional Commissioner of Customs. Organizational Structure of Special Valuation Branch

Who has to register with Special Valuation Branch?

If the parties of import export transaction are officers or directors of one another's businesses; employer and employee; legally recognized partners in business; directly or indirectly owns, controls or holds 5 per cent or more of the outstanding voting stock or shares of both of them;. one of them directly or indirectly controls the other; directly or indirectly controlled by a third person; together they directly or indirectly control a third person;members of the same family; those who have collaboration Agreement; those who have technical Agreement; those who have any other contract or agreement with the foreign supplier, such parties fall under Special Valuation Branch (SVB). Click here to read in detail about parties to be registered with Special Valuation Branch -Who should register with Special Valuation Branch

What are the questions asked under questionnaire list of Special Valuation Branch (SVB)?

The details of questions are prescribed under Annexure A of Special Valuation Branch. Questions under Special Valuation Branch in Annexure A is here Questionnaire under Special Valuation Branch Annexure A

I am a Sole Agent/ Sole Distributor/ Sole Concessionaire. What are the documents required to be submitted with Special Valuation Branch of Indian Customs?

The documents to be submitted with Special Valuation Branch by Sole Agent/ Sole Distributor/ Sole Concessionaire are prescribed as per Annexure B of Special Valuation Branch. Click here to read the contents of Annexure B under Special Valuation Branch -List of documents required to be submitted in case of sole agents, sole distributer etc under SVB.

We are Subsidiary company / Holding Company. Please explain on documentation required to be submitted with SVB – Special Valuation Branch?

The details of documents required to be submitted for Subsidiary company / Holding Company is given under Annexure C of Special Valuation Branch. The details of documents required to be submitted with Special Valuation Branch as per Annexure C is given here - List of Documents required to be submitted in case of subsidiaries,collaboration agreement etc.

Is specific approval of concerned Commissioner of customs required in all cases registered in the special valuation branch for investigation?

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

What is the rate of extra duty deposit fixed by customs under Special Valuation Branch?

The rate of extra duty deposit fixed by customs under Special Valuation Branch is 1%

What happens, if the importer does not furnish complete reply to the questionnaire within 30 days of receipt of the 'Questionnaire' by the importer under SVB?

If the importer does not furnish complete reply to the questionnaire within 30 days of receipt of the 'Questionnaire' by the importer under Special Valuation Branch, the extra duty deposit will be increased to 5% till the date of receipt of reply by the Department.

The Special Valuation Branch order is valid for how many months?

Normally the SVB order is valid for a period of 3 years.

In all cases of loading, is it mandatory for the importer to quote Order in Original No. of SVB and indicate the percentage of loading at the time of filing of each Bill of Entry?

Yes, in it is mandatory for the importer to quote Order in Original No. of SVB and indicate the percentage of loading at the time of filing of each Bill of Entry.

Under SVB, if importers do not quote the Order No. and the loading factor, what happens?

If importers do not quote the Order No. and the loading factor under Special Valuation Branch, it will be construed as misdeclaration on the part of importer and dealt with in accordance with the provisions of Customs Act.

What are the critical documents required for Special Valuation Branch of Customs?

The critical documents required for Special Valuation Branch is IEC Certificate, PAN card, Brief about relationship between buyer and seller, Articles of Memorandum, GATT declaration, SVB Bond (in case of other Custom House, copy of the same), B/E, Invoice etc.

Can related parties themselves register with Special Valuation Branch?

Yes, related parties themselves can register with Special Valuation Branch.

How does Special Valuation Branch assess the value?

The Special Valuation Branch (SVB) assess the transaction value of identical goods, or of similar goods, in respect of sales to unrelated buyers in India, the deductive value for identical goods or similar goods or the computed value for identical or similar goods. Rules related to Special Valuation Branch : 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

We just started import export transaction with another firm which is related. Can we register with Special Valuation Branch (SVB) at the first transaction itself?

Yes, the registration with Special Valuation Branch (SVB) can be done with the first transaction itself by a new company dealing with any related party or an existing company that is to initiate imports with related party.

Who approves reference to Special valuation Branch?

The reference to Special Valuation Branch (SVB) is done with the prior approval of Commissioner of Customs.

What is the time period to reply by importers to Special Valuation Branch after receiving questionnaire?

Reply to questionnaire has to be effected within 30 days of its arrival.

We are traders importing goods and selling the same condition in local market. What are the documents to be submitted than regular one?

The traders importing goods and selling the same condition in local market are supposed to furnish the invoice value, landed price, and their selling price in the Indian market.

What is the validity period of order issued by Special Valuation Branch?

The Order- In-Original issued by the SVB remains in operation for a period of three (3) years.

When should the Order of Special Valuation Branch be renewed after its expiry of three years?

The order of Special Valuation Branch can be renewed further period of 3 years.

Is it mandatory for the importer to quote Special Valuation Branch Order-in-Original number in Bill of Entry documents at the time of each import?

Yes, 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.

There is no change in the terms and conditions of the agreement or pattern of invoicing with the related party. What are the procedures under SVB?

If 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.

Who is the authority to appeal against Special Valuation Branch Order?

In all cases where the importer is aggrieved by the order passed by Special Valuation Branch , he may file an appeal to the Commissioner of Customs (Appeals) of the respective jurisdiction.

What is the impact of non registration or non conformity with the rules of Special Valuation Branch (SVB)?

Non registration or non-conformity with the Rules or Special Valuation Branch circulars may even lead to higher EDD up to 5%.

Special Valuation Branch, A simple tutorial

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Comments

VIKAS VERMA: On 01 December 2015 Let me know what's the benefit thru SVB, or if we will not opearte thru SVB than any issue by authority in future.

Dhiraj Malusare: On 04 December 2015 The importer & supplier are not related in terms of Rule 2(2) and there is an SVB contract in between Importer & supplier? Please explain me about above query, Please revert soon.

Shaikh Ibrahim: On 29 December 2015 in case of SVB, importer will be issued with BOE for home consumption- provisional. Will again customs issue BOE for home consumption once final assessment is done by them. Pl answer in line with RBI circular

JATIN DAVE: On 05 March 2016 one of our importer svb order is expired on 27/02/2016 but we are filing boe on 10/02/2016 but some reason file is panding till date so please advice me can we don provisional assesment for the same shipment import goods is landed in india on 06/02/2016 so please advice

krishna patidar : On 12 August 2016 I AM KRISHNA PATIDAR FROM INDORE, WE ARE STARTING NEW FIRM IN INDIA AND WE WANT TO IMPORT SKD(MCPCB), WE WANT MORE INFOR ABOUT IEC, DOES WE HAVE TO REGISTER FOR GETTING IEC AND PORT REGISTRATION, AND THE AM CODE BY BANK WHICH IS REQUIRE FOR IMPORT OUR PRODUCT IS NOT MENSIONED IN NEGATIVE LIST.

O P PANDEY: On 27 September 2016 Dear Sir, our client imported the material and shipment ready for B/E filing but SVB order is expired , in this situation pls advice us what can i do.

raja: On 02 February 2017 dear sir i am importer having a valid svb order upto 2015, as per the new notification i have to go for renewal or my sunset period is not applicable i need your help

Ram Prasad: On 13 February 2017 is it differ supplier name like associated.

Bhausaheb Wagh: On 31 July 2019 we had taken One Time Services from our foreign Company ie, TTA Cost, Testing Cost & Consultant Cost for Our Imported Shpment please Confirm this Services can be Adding in Transation Value

Paras Shah: On 21 November 2019 Needed Clarification : 1) M/s A and M/s B , both are Private Limited company registered in India. 2. M/s A acquire major stake in M/s B. (now M/s B become subsidiary of M/s A ) w.e.f.2019 3. M/s A buy the material from foreign supplier who is not related parties of any ( M/s A & M/s B) . 4. If M/s A sells material on High sea Sales to M/s B Question Than Should M/s B is required to take SVB registration when they are buying material from M/s A on HSS who in turn is buying from a 3rd party foreign supplier (Not related ) to either M/s A & M/s B ?

Mohamedali Boxwala: On 02 December 2019 What are the benefits of taking SVB.

mayur bhatt: On 24 June 2021 Sir, my SVB order is expired on 27.08.2020 , if the method of transaction is unchanged than need to renew svb order or not ?

Special Valuation Branch; Frequently Asked Questions

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