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, thereby upholding the principles of fair valuation under the Customs Valuation (Determination of Value of Imported Goods) Rules, 2007.

For import-export compliance, SVB plays a crucial role in mitigating the risk of under-valuation, which could lead to customs duty evasion or litigation. Importers engaged in transactions with related foreign suppliers are required to register with SVB and provide detailed documentation, including agreements, invoices, transfer pricing reports, and royalty arrangements. SVB evaluates whether price adjustments—such as for royalties, license fees, or technical services—are required for accurate duty assessment.

By ensuring compliance with WTO valuation guidelines and protecting government revenue, SVB is essential for maintaining transparency and integrity in cross-border trade. For import-export firms, proactive SVB compliance reduces delays, avoids penalties, and ensures smooth clearance of goods, making it a vital aspect of international trade operations in India.