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 Home / SVB
SVB
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Our Expertise, Your Advantage
Kelular Consulting is a team of experienced
professionals with in-depth knowledge of
Special Valuation Branch (SVB) procedures,
Customs valuation requirements, and related-party import
transactions. We provide end-to-end assistance to importers
in managing the SVB process, from documentation and
questionnaire responses to coordination and representation
before Customs authorities.
Our objective is to help businesses navigate SVB
requirements efficiently, minimize valuation-related risks,
and ensure smoother customs clearance for
related-party imports.
Why Choose Kelular Consulting?
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Expert SVB Guidance:
Practical assistance throughout the SVB investigation
and valuation process.
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End-to-End Support:
Assistance with documentation, annexures, questionnaires,
submissions, and follow-up.
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Customs Valuation Expertise:
Support in understanding and complying with applicable
Customs valuation requirements.
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Accurate Documentation:
Careful review and preparation of supporting documents
to reduce the risk of deficiencies and queries.
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Professional Representation:
Assistance in coordinating and representing the importer
before the concerned Customs authorities.
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Risk Mitigation:
Helps identify potential valuation and additional-duty
concerns at an early stage.
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Timely Follow-Up:
Continuous coordination to help keep the SVB process
organized and progressing efficiently.
With Kelular Consulting, businesses can
manage SVB compliance with greater confidence while focusing
on their core import operations.
The Special Valuation Branch (SVB)
is a specialized unit of Indian Customs
that examines the valuation of selected imports
involving related parties or
specified additions to the price paid or payable.
Its primary objective is to determine whether the
declared transaction value can be accepted in
accordance with the Customs Valuation
(Determination of Value of Imported Goods)
Rules, 2007.
The governing procedure is principally outlined
in CBEC Circular No. 5/2016-Customs,
dated February 9, 2016. The circular
aims to make SVB referrals more selective,
streamline and standardize the investigation
process, and minimize unnecessary delays in
the clearance of imported goods.
No. Not every related-party import
requires an SVB investigation. As per
Circular No. 5/2016-Customs,
certain categories are generally kept outside
the scope of routine SVB investigation,
including:
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Samples and prototypes
imported from related sellers.
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Goods fully exempt from customs duty
when imported from related sellers.
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Low-value transactions where
the value of an individual import does not
exceed INR 100,000, and the
aggregate value of such imports does not exceed
INR 2.5 million during a
financial year.
However, the proper officer may still
examine the declared transaction value
to determine its acceptability under the applicable
Customs Valuation Rules. Therefore, importers
should maintain adequate supporting
documents and valuation records, even
when an SVB referral is not anticipated.
The Special Valuation Branch (SVB)
investigation process generally
involves the following five stages:
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Initial Declaration and Annexure A:
The importer declares the related-party
relationship in the Bill of Entry
and submits Annexure A
along with the relevant supporting documents.
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Preliminary Examination:
The proper officer reviews the nature of
the relationship, details of any additional
payments, and the information provided to
determine whether an SVB investigation is
warranted.
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Referral and Provisional Assessment:
If the matter is referred to the jurisdictional
SVB, the affected imports
may be assessed provisionally while the
investigation is in progress.
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Annexure B and Supporting Evidence:
The SVB issues a detailed questionnaire,
generally requiring the importer to provide
comprehensive responses and supporting records
within the prescribed 60-day period.
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Investigation Report and Final Assessment:
After examining the submissions and supporting
evidence, the SVB records its findings in an
Investigation Report (IR) and
forwards it to the Customs formation handling
the imports. The proper officer then proceeds
with the final assessment or further
action, as applicable.
The Special Valuation Branch (SVB)
is a dedicated Customs unit that examines the
valuation of imports involving
related parties. It assesses
whether the declared transaction value represents
the true arm’s-length value in
accordance with the Customs Valuation
Rules (CVR) and determines whether any
adjustments to the declared import value are
required.
Imports are generally referred to the
Special Valuation Branch (SVB)
when they involve transactions between an
Indian importer and a related foreign
supplier, such as a parent company,
subsidiary, group entity, or other affiliated
concern.
The SVB examines such transactions to determine
whether the declared import value reflects an
arm’s-length price in accordance
with applicable Customs valuation rules.
If the SVB accepts the declared import
value, the valuation is accepted for
the relevant transactions, subject to applicable
Customs procedures and any subsequent review.
If the declared value is not accepted,
Customs may issue a show-cause notice
and reassess the import value and applicable
duties.
This may result in additional duty
liability, along with the option for
the importer to respond, contest the findings,
or pursue an appeal in accordance with the
applicable Customs procedures.
At Kelular Consulting, we provide
end-to-end support for SVB investigations,
covering the preparation and filing of required
annexures, documentation, responses to SVB queries,
and representation before Customs authorities.
Our experienced professionals help ensure compliance
with applicable Customs valuation regulations,
mitigate potential duty risks, and facilitate the
smooth and efficient clearance of
related-party imports.
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