What are the 6 methods of Customs valuation?
The WTO Customs Valuation Agreement prescribes six methods of customs valuation to determine the value of imported goods for duty assessment. These methods must be applied in sequential order unless the importer requests to reverse Methods 4 and 5.
What is EDD in customs?
In customs, EDD stands for Extra Duty Deposit. It is a provisional amount collected by customs authorities when there is doubt about the declared value of imported goods. EDD acts as a temporary safeguard to protect government revenue until the correct valuation is determined. It is imposed under Rule 12 of the Customs Valuation (Determination […]
What is the validity of an SVB order?
The validity of an SVB order typically extends to 3 years from the date of its issuance. During this period, the customs authorities will apply the determined transaction value to all subsequent imports of the same goods from the same supplier under similar conditions. This means that until the order expires, there is a presumption […]
What is an SVB Bond?
An SVB bond is a financial guarantee furnished by an importer to Indian Customs authorities when the transaction under scrutiny involves related parties — such as a parent and a subsidiary — and the Customs Special Valuation Branch (SVB) is investigating whether the declared price of the goods is influenced by their relationship. This bond […]
What is SVB Delivery?
SVB Delivery refers to the final outcome issued by the Special Valuation Branch (SVB) of Indian Customs after completing its investigation into import transactions between related parties, such as subsidiaries and parent companies. When goods are imported from related suppliers, customs authorities assess whether the declared transaction value is influenced by the relationship, as per […]
What is the SVB Refund process?
The SVB (Special Valuation Branch) refund process applies when an importer has paid provisional customs duty pending investigation into related party transactions or royalty/license fee payments. After SVB finalizes its valuation and issues an order, the Bills of Entry initially assessed provisionally are re-assessed based on the finalized value. If the finalized assessable value is […]
What is the Rule 5 of Customs valuation rules?
Rule 5 of the Customs Valuation (Determination of Value of Imported Goods) Rules, 2007 provides that when the transaction value of imported goods cannot be determined under Rule 4, the value shall be based on the transaction value of identical goods. Identical goods are those that are the same in all respects, including physical characteristics, […]
What are SVB cases?
SVB cases refer to the valuation assessments conducted by the Special Valuation Branch (SVB) of Indian Customs when goods are imported from related parties. These cases are initiated to determine whether the declared transaction value has been influenced by the relationship between the importer and the supplier, and whether it reflects a true arm’s length […]
What is the purpose of SVB?
The Special Valuation Branch (SVB) is a specialized unit under the Indian Customs Department responsible for scrutinizing the valuation of goods imported between related parties, such as parent-subsidiary firms or joint ventures. Its primary purpose is to ensure that the declared transaction value is not influenced by the relationship between the buyer and the seller, […]
What are the benefits of SVB?
The Special Valuation Branch (SVB) offers several important benefits for importers engaged in transactions with related foreign suppliers. One of the primary advantages is expedited customs clearance. Once the SVB process is completed, future consignments from the same related supplier are cleared without repeated valuation checks, reducing delays and improving supply chain efficiency. Another major […]
