India Entry & Business Startup Consultings

Special Valuation Branch

Special Valuation Branch

Special Valuation Branch (‘SVB’) is a unit of the Custom House the function of which is to investigate the transactions involving the association between the suppliers including any technical collaboration between the parties etc.  All those importers importing goods from related parties or having any technical collaboration with their related parties are required to file a declaration about the relationship at the time of filing of a bill of entry before the jurisdictional custom authorities i.e. Appraising Group. The Group based on the circumstances of sale and the invoice value of the identical or similar goods will make a reference to the Special Valuation Branch order for further investigation of the influence of connection on assessable value. If the importer is able to demonstrate with the help of the invoice value of sales to unrelated buyers that the import values are not influenced by the relationship. In that case, there is no requirement for any recommendation to Customs Special Valuation Branch. Also, the bill will be evaluated based on those coexisting import values. Although, if there will be no coexisting imports, and the contrast of values cannot be calculated at the time of evaluation of bill of entry, then a recommendation to Special Valuation Branch needs to be made by the Appraising Group with the prior approval of the Commissioner of Customs. 

The case is registered with the Special Valuation Branch order based on the reference from the Appraising Group and a PD circular for provisional assessment is issued to the importer as well as the Appraising Group. The importer is required to indicate the PD circular no. at the time of provisional assessment of all its imports and execute PD bond with extra duty deposit at the prescribed rate on the assessable value of goods along with other details as required by the questionnaire issued by the Appraising Group. Based on the details submitted by the importer an order in original is passed by the D.C. (SVB) which is intimated to the importer and also to the Appraising Group. The order in original is valid for a period of three years and requires renewal. 

How ASC Help?

ASC has in-house professionals with years of experience in consulting importers to have their bill of entry finalized by the Customs Authorities and also the renewal of order in original. Therefore ASC provides the out-and-out services for Special Valuation Branch under custom & helps thoroughly:

  • Analyzing the influence on the import price due to the relationship between the importer and its suppliers and also any other collaboration agreements;
  • Assisting companies in organizing the information and documents required to be submitted to the Appraising Group
  • Preparation, filing, and representation before the Appraising Group and providing timely support in order to faster disposal of the case
  • Keeping a Follow up with the Appraising Group to decrease the process timeline till the order in original is received.
  • Assisting companies in the renewal of order in original after their expiration for uninterrupted flow 
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