Importing from your parent company, subsidiary, or joint venture? The **Special Valuation Branch (SVB)** scrutinizes your price to prevent duty evasion. We manage the entire filing process.
Facing a Customs Hold due to SVB?
The Special Valuation Branch (SVB) is a specialized unit of the Customs Department that investigates import cases involving transactions between "related parties" under Rule 2(1) of the Customs Valuation (Determination of Value of Imported Goods) Rules, 2007.
The objective is to determine if the relationship between the importer and the supplier has influenced the transaction price. If the price is deemed artificially low, SVB orders a **Valuation Loading**, meaning the importer pays duty on a higher value, often along with penalties.
Importer declares related party status in the Bill of Entry.
Case is referred by the port to the jurisdictional SVB (Mumbai / Delhi / Chennai).
Submission of 30+ mandatory documents and detailed replies to the SVB Questionnaire.
SVB issues the Final Order accepting the price or imposing loading / penalty.
EDD is released. Pricing is finalized for all future imports.
Even after the initial SVB investigation, compliance does not end. The Final Order remains subject to annual review by Customs authorities.
Full Filing & Resolution
Based on Complexity & EDD Risk
SVB is where 'Accountancy' meets 'Customs Law.' CloudDesk ensures your global transfer pricing stands up to local scrutiny.
The SVB process starts with a massive questionnaire (Annexure A).One wrong answer about "Royalty" or "License Fees" can trigger a 100% investigation.CloudDesk performs a Financial Review of your Inter-Company Agreements to ensure your answers are consistent with your Income Tax (TP) filings and Customs laws.
Historically, SVB cases led to a 1%–5% Extra Duty Deposit (EDD) on every shipment while the case was pending.CloudDesk’s "Early-Resolution" Strategy aims to get a "No-EDD" order by providing a robust data set at the time of registration, keeping your working capital free.
Customs officers often look for contradictions between your Income Tax TP Report and your Customs Valuation.CloudDesk’s experts align these two perspectives, creating a "Unified Valuation Defense" that proves your "Arm’s Length" price is valid for both departments.
SVB orders are no longer valid indefinitely. You must file a Renewal Declaration every year/period. CloudDesk’s Compliance Clock tracks your SVB order expiry and files the necessary "No Change" declarations to ensure your imports continue under "Final Assessment" status.
Any importer who is "Related" to their foreign supplier under Rule 2(2) of the Customs Valuation Rules. This includes: (1) Subsidiaries/Parent companies, (2) Companies with common Directors, (3) Partners in business, or (4) If one company controls the other.
No. You don't need SVB if: (1) The import is a one-time gift, (2) The total value is small (as per local limits), or (3) The goods are duty-free and there's no incentive involved. CloudDesk provides an SVB Applicability Test to see if you can skip the process entirely.
This is the current governing law that simplified the SVB process. It replaced the old, endless investigations with a time-bound registration and a "Risk-Based" approach to investigation.
"• Annexure A: The initial questionnaire you file at the port of entry to register your relationship. • Annexure B: The detailed follow-up questionnaire filed if the SVB decides a full investigation is needed."
Legally, the SVB should finalize the investigation within 4 to 6 months from the date of receiving all documents. However, without proactive follow-up (which CloudDesk provides), these cases can drag on for a year.
Until the SVB issues a final "Order," your Bill of Entry is assessed "Provisionally." This means the duty you pay is not final, and you may be asked to pay an Extra Duty Deposit (EDD). CloudDesk works to minimize or eliminate this EDD.
There is no "Registration Fee" charged by Customs. The costs are purely professional (for experts like CloudDesk) and potential EDD if your case is deemed high-risk.
If you sign a new agreement with your parent company or change your transfer pricing formula, you must inform the SVB immediately. Failure to do so can lead to heavy penalties and a retrospective duty demand