SVB cases are investigations conducted by the Special Valuation Branch of Indian Customs into whether a relationship between an importer and a related foreign supplier influenced the declared value of imported goods. A case is opened when the importer declares a related-party transaction under Rule 2(2) of the Customs Valuation Rules, 2007, and the jurisdictional Commissioner decides the transaction merits examination. The procedure is governed by Circular No. 05/2016-Customs dated 9 February 2016, which replaced the older regime and set defined timelines.
Importantly, an SVB case does not stop your goods. They are cleared on provisional assessment while the investigation runs.
SVB cases arise in two situations. The first is a related-party import, where the buyer and seller fall within the definition in Rule 2(2) of the CVR, 2007, covering parent and subsidiary companies, joint ventures, common control, and other listed relationships. The second is where certain payments may need to be added to the transaction value even between unrelated parties:
Not every related-party import becomes a case. The Commissioner examines the transaction and decides whether a reference is warranted, and only cases with significant revenue implications are taken up.
The procedure under Circular 05/2016 runs to a defined sequence:
This is where most guidance is out of date. Since Circular 05/2016, the SVB no longer passes an appealable order. It conveys its findings by way of an Investigation Report to the referring customs formation, which then finalises the provisional assessment. Where the declared value is found to conform to Rule 3 of the CVR, the provisional assessments are finalised without a speaking order. Where the value is found to have been influenced, the proper officer at the customs station issues a show cause notice. This single-report design was introduced specifically to avoid multiple streams of appeal for the trade.
No. Circular 05/2016 removed the Extra Duty Deposit. No security in the form of EDD is taken from importers while an SVB case is pending. There is one exception. If the importer fails to furnish the required documents and information within 60 days of requisition, a security deposit of 5 per cent of the declared assessable value may be imposed for a period not exceeding three months, and the importer is granted a further 60 days to comply. The importer may choose whether to provide that security as a cash deposit or a bank guarantee.
SVBs function at five Custom Houses: Mumbai, Delhi, Chennai, Kolkata, and Bengaluru, under the supervisory control of the jurisdictional Chief Commissioner or Principal Commissioner appointed by CBIC. Where the import takes place through one of these five Custom Houses, the importer may select either the SVB of the Customs House of import or the one most proximate to the corporate office, whichever is convenient. Once registered, the case is entered in the Central Registry Database maintained by the Directorate General of Valuation.
Certain transactions are never taken up for SVB inquiry: imports of samples and prototypes from related sellers, imports where the duty chargeable is unconditionally fully exempt or nil, and low-value transactions below the prescribed per-transaction threshold where the cumulative annual value stays within the specified limit. No reference is required where the addition to value arises under Rules 10(1)(a) or 10(1)(b) of the CVR, 2007.
At JPARKS INDIA, we manage SVB cases end to end for related-party importers. We prepare the Annexure A questionnaire filed with the Bill of Entry, advise on filing a prior Bill of Entry roughly 15 days before arrival so customs has time to decide on the reference, assemble the Annexure B submission within the 60-day window, and build the arm’s length pricing evidence that keeps a case moving to a clean Investigation Report. Having served 500+ importers and exporters since 2018, we keep SVB predictable and cost-free. Learn more about our SVB registration services or book a free consultation.
SVB cases are investigations by the Special Valuation Branch into whether the relationship between an importer and a related foreign supplier influenced the declared import value. They are governed by Circular 05/2016-Customs.
The importer has 60 days to file the Annexure B response. The SVB is expected to complete its investigation within two months of receiving the information, extendable with the jurisdictional Commissioner’s approval.
No. If a case is referred, the goods are promptly cleared on provisional assessment under Section 18 of the Customs Act, 1962, so that no delay occurs in the release of the consignment.
No. Since Circular 05/2016, the SVB issues an Investigation Report to the referring customs formation rather than an appealable order. The customs station then finalises the provisional assessment.
SVBs operate at five Custom Houses: Mumbai, Delhi, Chennai, Kolkata, and Bengaluru. Importers clearing through these may choose the SVB of the port of import or the one nearest their corporate office.
