Special Valuation Branch Registration (SVB)

https://www.mbgcorp.com/in/corporate-secretarial-services/Have you ever applied for Special Valuation Branch registration in India? Understanding the importance of SVB import registration India is crucial for importers dealing with related foreign suppliers.

Overview of Special Valuation Branch (SVB)

The Special Valuation Branch (SVB) is a dedicated unit of the Indian Customs Department specializing in investigating transactions between an Indian importer and a foreign supplier who share a special relationship, such as joint ventures, partnerships, holding-subsidiary links, or other affiliations. Such relationships may influence the customs valuation for related parties, potentially leading to undervaluation of imports.

SVB monitors these transactions to ensure that imported goods are assessed at a fair price. The unit evaluates whether imports between related parties comply with arms-length price customs India requirements, preventing underpayment of customs duties.

SVB Registration: Process and Eligibility

SVB registration is mandatory for importers having affiliations with foreign suppliers beyond a normal buyer-seller relationship. This includes joint ventures, partnerships, or holding-subsidiary structures.

The SVB application process involves:

• Collating all necessary documentation and information for filing the SVB registration with customs authorities.
• Preparation and submission of the application and any amendments along with supporting documents.
• Obtaining the Provisional Duty Circular (PD Circular) from customs authorities to facilitate provisional clearance of imported goods until the SVB order is issued.
• Preparation and execution of the provisional duty bond (PD Bond).
• Representation and attending hearings before customs authorities during SVB registration proceedings, following up to secure the final SVB order.

Purpose of Special Valuation Branch Registration

• Ensure fair import duty assessment: SVB ensures that import prices reflect a fair market value, preventing manipulation in related-party transactions.
• Protect government revenue: Accurate customs valuation safeguards government revenue by ensuring proper duties are collected on imports.

MBG’s SVB Registration Services

• Liaise with the organization or it’s SPOC to collate information/documentation relevant to apply for SVB registration or for subsequent follow up with custom authorities
• Preparation and filing of application including amendment application along with relevant documents for SVB registration with custom authorities
• Obtaining provisional duty circular (PD Circular) from custom authorities to facilitate clearance of imported goods on provisional assessment basis till the time SVB order is passed
• Preparation and filing of documents for execution of provisional duty bond (PD Bond)
• Representation and attending hearing before custom authorities during the course of SVB registration proceedings and follow up with the custom authorities on a best effort basis and obtaining SVB order from custom authorities