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 price under the Customs Valuation (Determination of Value of Imported Goods) Rules, 2007.

An SVB case is triggered when the importer and exporter are related as per Rule 2(2) of the Valuation Rules—such as parent-subsidiary companies, joint ventures, or associates—and there is a likelihood that such a relationship may impact the declared value. Typical scenarios include the presence of royalty payments, technical collaboration, license fees, buy-back arrangements, or transfer pricing implications.

Once an SVB case is initiated, the importer must submit a detailed set of documents, including inter-company agreements, royalty contracts, pricing justifications, and financial disclosures. During the pendency of the SVB review, the goods are provisionally assessed. After a detailed examination, SVB either confirms the declared value or suggests loading (upward revision of value) for customs duty calculation.

SVB cases are essential to maintain transparency and prevent revenue loss due to undervaluation in related-party imports, ensuring compliance with global trade valuation norms.