Special Valuation Branch

When an importer buys goods from an overseas related party, such as a parent company, subsidiary, or other associated enterprise, customs authorities require confirmation that the relationship between buyer and seller has not influenced the declared transaction value. This scrutiny is carried out through the Special Valuation Branch, a specialised unit that examines related-party import transactions to determine whether the price charged is comparable to what would have been charged in an arm's length transaction between unrelated parties.

Why This Matters

Until an SVB proceeding is concluded and an order is issued, importers are typically required to clear goods on a provisional basis, often against an extra duty deposit, which ties up working capital and adds uncertainty to landed cost calculations. An unfavourable SVB order can result in the transaction value being loaded upward for duty purposes, with a corresponding demand for differential duty on past imports, making it important to present the relationship and pricing basis clearly and correctly from the outset.

How We Help

SVB Registration and Initial Filing

We assist importers in identifying when a transaction falls within SVB's scope and in preparing the initial registration and questionnaire response, including details of the corporate relationship, pricing policy, and any technical or licence agreements linked to the imported goods.

Transaction Value Justification

We help build the economic and documentary case that the declared transaction value has not been influenced by the relationship, drawing on comparable pricing data, transfer pricing documentation, and the commercial rationale for the pricing arrangement.

Query Response and Proceedings Management

We coordinate the response to queries raised by the Special Valuation Branch during the course of the proceedings, ensuring that submissions are consistent, well-supported, and address the specific concerns raised by the branch.

Order Review and Renewal

Once an SVB order is issued, we review its terms and validity period, advise on any further action required, and assist with renewal filings as and when the order comes up for periodic review.

Who Needs This

• Indian subsidiaries and group companies importing from an overseas parent or affiliate
• Multinational businesses with intra-group supply arrangements into India
• Importers with associated technical collaboration or licence agreements
• Companies facing extra duty deposit requirements pending SVB finalisation

Our Approach

We coordinate closely with the client's transfer pricing and finance teams to ensure that the position presented to the Special Valuation Branch is consistent with the group's broader pricing and documentation policies. Our focus is on building a well-substantiated case at the outset, since a well-prepared initial filing significantly reduces the scope for prolonged proceedings.

Get in Touch

To discuss how we can support you with Special Valuation Branch matters, write to us at info@agarwalurs.com.