Special Valuation Branch

The founder of Inext Group Mr. Amar Khurana is a renowned consultant and expert for matters related to valuations and related party transactions. He is helping many companies in the matters pertaining to SVB branch set up by Customs. He has been associated with SVB since many years. Inext provides complete consultancy regarding SVB.

Inext can assist you in the following for getting SVB Order/Renewal of SVB Order

  • Scrutiny and analysis of documents and information available
  • Determining appropriate Rule of the Customs Valuation (Determination of Value of Imported Goods) Rules, 2007.
  • Drafting and submission of reply to SVB questionnaire and other documents
  • Drafting Support in preparation of documents required
  • Appearance in personal hearing before customs authorities
  • Annual Submission to SVB Branch
  • Guidance related to Record maintenance.
  • EDD refund consultancy

What is special Valuation Branch

Special Valuation Branch is a Branch of the Custom House, specializing in investigating the transactions involving relationship between the supplier and the importer and certain other special features like Technical Collaboration between the parties, etc. Special Valuation Branch examines the influence of relationship on the invoice value of the imported goods in respect of transactions between related parties. In respect of Technical Collaboration Agreements and Joint Venture Agreements, the terms and conditions of these agreements are examined to arrive at the conclusion, whether the existence of such agreement has influenced the invoice value of the imports.

Who should register with SVB

Importers who are related to the supplier in terms of Rule 2(2) of the Customs Valuation Rules, 1988 are required to register with SVB. Rule 2(2) of the Customs Valuation Rules, 1988 is as follows:-

Rule 2(2): For the purpose of these rules, persons shall be deemed to be "related" only if :-

  • They are officers or directors of one another's businesses
  • They are legally recognized partners in business;
  • They are employer and employee;
  • Any person 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;
  • Both of them are directly or indirectly controlled by a third person;
  • Together they directly or indirectly control a third person;
  • They are members of the same family.

Explanation I - The term "person" also includes legal persons

Explanation II- 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.

Apart from the above, those who are having Collaboration Agreement, Technical Assistance Agreement or any other agreement / contract with the foreign supplier are also required to register with SVB.