An SVB order in customs refers to an order issued by the Special Valuation Branch (SVB) of Indian Customs. The SVB is a specialized unit that investigates and examines transactions involving imports between related parties—such as parent companies and subsidiaries, joint ventures, or affiliates. These transactions often require closer scrutiny to ensure that the declared value of imported goods is not manipulated to evade customs duties.
When a company imports goods from a related party, the declared transaction value may not always reflect the true market value. To address this, the customs authorities direct such cases to the SVB, which assesses whether the declared value is acceptable under Rule 3 of the Customs Valuation (Determination of Value of Imported Goods) Rules, 2007. The importer is required to file detailed documents such as the inter-company agreement, pricing policy, and justification for the declared value.
Once the SVB completes its investigation, it issues an SVB order, determining whether the declared transaction value is acceptable or if an adjustment (known as loading) is necessary. This order helps customs officials assess duties accurately in future consignments involving the same related party transaction.
Until the SVB order is finalized, provisional assessments are carried out for imports, and a bank guarantee or security may be required. Once issued, the SVB order remains valid for a period (usually three years) unless there are changes in the nature of the transaction.
