The Special Valuation Branch (SVB) is a specialist branch within Customs that is responsible for the valuation of imported products. Its principal duty is to precisely identify the true and fair value of products so that duties and taxes can be assessed. SVBs handle issues involving related-party transactions, in which the buyer and seller's connection influences the claimed value of the items.
1] Determining Value: They examine the transaction value, considering factors such as discounts, royalties, and other payments that may affect the value of the goods.
2] Investigation and Verification: This may involve gathering information from various sources, including the importer, exporter, and other relevant parties, to ascertain the true value of the imported goods.
3] Risk Assessment: They use risk assessment methods to rank cases for examination according to variables such the type of goods, parties involved, and previous compliance history.
Interlink Capital's expertise in customs compliance and valuation matters proves to be invaluable for businesses dealing with the Special Valuation Branch under customs, helping them navigate complex regulations and ensure compliance with the law.
1] We have expertise in dealing in customs regulations and compliance requirements, including those related to special valuation rules. They can help businesses understand and adhere to the specific procedures and documentation required by the SVB.
2] We conduct valuation analysis to ensure compliance with SVB regulations and to determine the appropriate value of imported goods.
3] We assist in preparing and submitting the necessary documentation required by the SVB, such as applications, declarations, and supporting documents. We represent businesses before the SVB in case of inquiries, audits, or disputes regarding valuation matters.
Currently, there are 5 special valuation branches in India i.e., Mumbai, Chennai, Kolkata, Delhi, and Bengaluru.
Under the Customs Act, 1962 (the "Customs Act") read in conjunction with the First Schedule
to the Customs Tariff Act, 1975, imports of goods into India are subject to Basic Customs
Duty (or "BCD") at the applicable rates. In addition to BCD, there are extra customs charges
that are equal to the GST Compensation Cess and the Goods and Services Tax, also referred to
as "IGST" or "Import VAT." Nevertheless, the GST Compensation Cess is only levied on a select
few goods.
Apart from the above mentioned customs duties, specified goods also attract additional
Customs Duties such as anti-dumping duty, safeguard duties etc.
In accordance with Section 14 of the Customs Act, custom duties are computed based on the "assessable value" of the goods, which is the "transaction value" agreed upon by the importer and the supplier, subject to specific inclusions (such as freight, insurance, etc.) in the transaction value if they haven't already been included and subject to the requirement that the buyer and seller are unrelated. The Customs Valuation (Determination of value of Imported Goods) Rules, 2007 (the "CVR"), which are framed in this regard, must be followed in determining the value of the goods in the event that the buyer and seller are related.
Within the Indian Customs department, the SVB is a specialized unit that looks into the valuation of transactions involving "related persons," as that term is defined in Rule 2 (2) of the CVR. In order to determine whether or not the relationship between the parties affects the intercompany prices of goods and lower the obligation for customs duties, specific customs officials are assigned to this department of customs, they conduct the investigation.