Special Valuation Branch In Chhattisgarh (SVB) – Complete Guide for Businesses

 

International trade often involves transactions between related parties, such as subsidiaries, joint ventures, or associated enterprises. In such cases, Customs authorities pay special attention to ensure that the imported goods are valued fairly and that there is no undervaluation or overvaluation that could impact duties and taxes.

This is where the Special Valuation Branch (SVB) of Indian Customs comes into the picture. The SVB deals with the valuation of goods imported from related parties, ensuring transparency, compliance, and accuracy in international trade transactions.

For businesses engaged in imports, SVB registration and clearance are essential for smooth operations and avoiding unnecessary delays, investigations, or penalties.

What is Special Valuation Branch (SVB)?

The Special Valuation Branch is a wing of Indian Customs that investigates and verifies the correctness of the declared value of goods imported from related parties.

When an Indian company imports goods from its foreign parent company, subsidiary, associate, or joint venture, Customs may suspect that the declared value is influenced by the relationship. The SVB examines whether:

• The declared import price reflects fair market value.

• There are hidden royalties, license fees, or technical charges linked to the import.

• Any part of the value is understated or overstated to evade or manipulate customs duties.

When is SVB Investigation Required?

SVB proceedings are triggered when:

• Imports are made from related parties (parent, subsidiary, affiliate, or joint venture).

• Payments involve royalty, license fees, or technical know-how fees.

• Import pricing may be influenced by the relationship between buyer and seller.

• Customs authorities need clarity on the true transactional value.

Benefits of SVB  Clearance In Chhattisgarh

• Hassle-free Imports: Once SVB clearance is obtained, imports from related parties move smoothly without repeated scrutiny.

• Avoid Delays: Prevents unnecessary detentions or investigations at ports.

• Compliance Assurance: Demonstrates transparency and compliance with Customs laws.

• Reduced Financial Risks: Avoids fines, penalties, and litigation due to undervaluation issues.

• Business Credibility: Builds trust with authorities and international partners.

SVB Registration & Process In Chhattisgarh

The SVB process involves multiple stages:

• Filing of SVB Application:

  • Importers dealing with related parties must submit an application to Customs along with supporting documents.

• Provisional Assessment:

  • Until SVB clearance is granted, Customs may allow clearance of goods on a provisional basis, against a bond and security.

• Examination by SVB:

  • SVB reviews the relationship between importer and supplier, terms of sale, payment structure, and royalty/licensing agreements.

• Final Order:

  • Customs issues a final SVB order confirming whether the declared value is acceptable.

• Validity of SVB Order:

  • Generally valid for 3 years, unless there are changes in business terms or contracts.

Documents Required for SVB Registration In Chhattisgarh

Businesses need to submit comprehensive documents, such as:

• Application form (Annexure A) for SVB

• Copy of Import Export Code (IEC)

• PAN & GST Registration

• Copy of Bill of Entry (recent imports)

• Invoice & Packing List from related supplier

• Agreement/Contract with related party

• Transfer Pricing study or related-party pricing documents

• Annual Report & Audited Financial Statements

• Royalty, technical know-how, or license agreements (if any)

• Details of shareholding pattern & relationship with foreign entity

Challenges Without SVB Clearance In Delhi

• Delays in Customs Clearance due to repeated queries.

• Provisional Assessments that block working capital.

• Additional Duties & Penalties if undervaluation is found later.

• Increased Compliance Costs due to prolonged scrutiny.

Why SVB Matters for Import-Export Businesses

For companies engaged in global trade, especially multinationals, SVB is not just a legal formality—it is critical for:

• Ensuring smooth import operations.

• Maintaining global compliance standards.

• Reducing litigation risks with Customs.

• Establishing long-term trust with regulators.

How YKG Global Helps with SVB Registration In Chhattisgarh

At YKG Global, we simplify the Special Valuation Branch process for businesses:

• Expert Advisory: Assessing whether your imports require SVB registration.

• Documentation Support: Preparing and filing SVB applications with Customs.

• Liaison with Authorities: Coordinating with Customs and SVB officials for quick clearance.

• Compliance Assistance: Ensuring royalty/license agreements are aligned with valuation norms.

• End-to-End Support: From application to final SVB order, we handle the process seamlessly.

With decades of experience in international trade, customs compliance, and regulatory services, YKG Global is your trusted partner for navigating the complexities of SVB.

The Special Valuation Branch (SVB) plays a critical role in ensuring fair and transparent valuation of imports from related parties. While the process can seem complex, it is a necessary compliance step for businesses engaged in international trade.

By obtaining SVB clearance, companies not only ensure smooth customs clearance but also strengthen their reputation as compliant and trustworthy global trade partners.

With YKG Global as your consultant, you can simplify the SVB process, avoid delays, and focus on growing your business while we handle the compliance.

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