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 lower, the importer becomes eligible to claim a refund of the excess customs duty paid.

To initiate the refund, the importer must file a refund application under Section 27 of the Customs Act, 1962 within one year from the date of final assessment. The application must be submitted to the jurisdictional customs authority along with necessary documents, including the final SVB order, re-assessed Bills of Entry, evidence of excess duty paid, and a declaration stating that the burden of the duty has not been passed on to another party (to avoid unjust enrichment). A Chartered Accountant’s certificate may also be required in certain cases.

The customs department verifies the claim and documents before processing the refund. If satisfied, the amount is sanctioned and credited to the importer. The refund process ensures that genuine importers are not penalized due to the time taken for SVB inquiries and helps maintain trade facilitation and procedural fairness under Indian customs law.