In Indian Customs, a Special Valuation Branch (SVB) is a specialized unit that deals with the valuation of imported and exported goods when the importer or exporter is related to the foreign supplier or buyer.
Here’s a clear breakdown
The Special Valuation Branch (SVB) investigates whether the relationship between the buyer and seller has influenced the price of imported goods — to ensure the declared value is not undervalued or overvalued to evade duty or transfer profits.
Importers are referred to SVB when:
The importer and the foreign supplier are related parties under Rule 2(2) of the Customs Valuation (Determination of Value of Imported Goods) Rules, 2007.
Examples:
Parent–subsidiary companies
Branch offices
Joint ventures
Exclusive distributors or agents
The import involves technical collaboration, royalty payments, license fees, or buy-back arrangements.
Examine whether the transaction value (declared value) is influenced by the relationship.
Scrutinize agreements, invoices, and pricing policies between related entities.
Determine if royalty, commission, or other charges should be added to the assessable value under Rule 10 of Customs Valuation Rules, 2007.
Issue an SVB Order approving or modifying the declared value.
Section 14 of the Customs Act, 1962 – Basis of valuation.
Customs Valuation (Determination of Value of Imported Goods) Rules, 2007 – Governs transaction value.
CBIC Circular No. 5/2016-Cus dated 9th February 2016 – Streamlined the SVB procedure to simplify and expedite valuation cases.
Importer Declaration → Submit Annexure A with relevant agreements.
Reference to SVB → Made by the assessing officer if related party imports are detected.
Preliminary Acceptance → Goods are provisionally assessed with bond + 1% security.
SVB Inquiry → Examination of pricing, agreements, etc.
Final Order → Issued confirming or revising valuation; valid for 3 years unless circumstances change.
Located at major Custom Houses:
Chennai
Mumbai
Delhi
Kolkata
Bengaluru
In Summary
The Special Valuation Branch ensures fair customs valuation in imports involving related parties, preventing manipulation of prices to evade duties or shift profits across borders.
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