#SVB Registration Process

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SVB Registration Process: Meaning, Steps & ASC Group Support

Navigating import compliance in India can be complex, especially when transactions involve related party imports. In such cases, SVB Registration becomes mandatory to avoid customs valuation disputes and delays. If you're importing goods from overseas subsidiaries or parent companies, understanding the SVB customs procedure is essential. This blog explains what SVB registration is, why it's required, the challenges involved, and how the ASC Group can assist you throughout the Special Valuation Branch process.

What is SVB Registration?

SVB stands for Special Valuation Branch, a unit under Indian Customs that evaluates the relationship between importers and foreign suppliers to ensure fair transaction values. SVB registration is mandatory for businesses that import goods from related parties under Customs Notification No. 23/98-Cus (NT) dated 01.06.1998.

Common examples where SVB registration is required:

Import from parent or subsidiary companies

Import under technical collaboration agreements

Transfer pricing arrangements affecting customs duty

The SVB customs process prevents under-invoicing and ensures compliance with Customs Valuation (Determination of Value of Imported Goods) Rules, 2007.

Why SVB Registration is Important

Problems that arise without SVB registration:

Delays in Customs Clearance: Shipments may be held up until valuation queries are resolved.

Higher Duty Payments: Without proper documentation, customs may impose higher duties.

Non-compliance Penalties: Importers may face legal notices or fines.

Loss of Business Time: Procedural delays can disrupt supply chains.

Solution:

Timely and accurate SVB registration ensures faster clearances, legal compliance, and optimal valuation. It minimizes risks associated with related-party transactions.

Who Needs SVB Registration?

You need SVB registration if your business:

Imports from a related foreign supplier

Has financial arrangements or profit-sharing with exporters

Imports goods with technical know-how fees, royalty payments, or license agreements

Has a relationship with the supplier that may affect the invoice price

Step-by-Step SVB Registration Process

Understanding the steps involved in the SVB customs process helps in timely compliance:

Step 1: Filing of Initial Declaration

Submit Form SVB-I along with the Bill of Entry at the port of import

Declare your relationship with the foreign supplier

Step 2: Submission of Detailed Documentation

Company profile (both importer and supplier)

Agreements (technical, royalty, licensing, collaboration)

Invoices and pricing structure

Transfer pricing reports (if applicable)

Board resolutions and proof of payments

Step 3: Review by Customs Authorities

Provisional assessment may be initiated

Additional duties may be imposed until SVB clearance is obtained

Step 4: Transfer to Special Valuation Branch

The file is transferred to the jurisdictional SVB (Mumbai, Chennai, Kolkata, Delhi, Bangalore)

Customs may issue questionnaires and seek clarifications

Step 5: Final Order Issued by SVB

After review, SVB issues an order determining whether the relationship affects the transaction value

Once cleared, customs assessment is finalized

Note: The validity of SVB registration is generally 3 years. It needs to be renewed if any changes occur in the relationship or transaction structure.

How ASC Group Supports Your SVB Registration

ASC Group is a trusted consultancy with over 25 years of experience in customs, taxation, and regulatory advisory. SVB registration is a technical process that requires legal expertise and attention to detail. Here's how ASC Group can assist:

Problem Businesses Face:

Lack of clarity on documentation and procedure

Delays due to incomplete filing

Miscommunication with customs authorities

Inconsistent interpretation of related party rules

ASC Group’s Solution:

Expert Consultation: Assess whether SVB registration is needed for your business

Documentation Support: Prepare, review, and file the necessary documents

Liaison with Authorities: Represent your case before the Special Valuation Branch

Compliance Assurance: Ensure adherence to customs laws and valuation rules

Ongoing Monitoring: Track changes that may impact SVB validity

Key Benefits of ASC Group’s SVB Customs Support:

Zero-delay document submission

Tailored advice from seasoned customs professionals

Representation across India’s five SVB offices

Dedicated client servicing and post-filing assistance

Frequently Asked Questions

What is the timeline for SVB registration?

Typically, it takes 2 to 4 months depending on the complexity of transactions and the responsiveness of documentation.

Is SVB registration a one-time process?

No, it must be renewed if there is any change in relationship, agreement, or pricing mechanism.

Can ASC Group help with SVB registration in any city?

Yes, ASC Group operates pan-India and handles SVB filings in Delhi, Mumbai, Kolkata, Chennai, and Bangalore.

Conclusion

If your business deals with related-party imports, SVB registration is not optional—it is a legal requirement. Delaying or mismanaging it can lead to heavy losses and compliance risks. With the right guidance, the SVB customs process can be straightforward and stress-free. ASC Group simplifies this journey with end-to-end support, ensuring accurate filings, smooth communication with customs, and peace of mind.

Original Source

[legalbusinessconsultant]

EXIM Advisory offers specialized support in SVB Registration with hassle-free customs valuation processes for party-related imports supported by documentation and compliance services.

[eximadvisory1]

Exim Advisory provides professional SVB Registration facilities with hassle-free customs compliance and valuation processes for Indian import-export businesses. Rely on us for hassle-free documentation and clearance.

[asc-group01]

ASC Group is your trusted partner for SVB registration. We assist with preparing transfer pricing data, handling queries from customs, and completing the registration process so your imports remain fully compliant with Indian laws.

[nikhil16068]

In India, when multinational companies or importers engage in transactions with related parties abroad, Special Valuation Branch (SVB) Registration becomes a mandatory compliance requirement under the Customs Act, 1962. This registration is essential to ensure the fair and transparent valuation of imported goods and to prevent abusive practices like under-invoicing or over-invoicing, which can erode government revenue. According to Rule 2 of the Customs Valuation (Determination of Value of Imported Goods) Rules, 2007, related parties include those with direct or indirect control, ownership ties, or other defined relationships. Because such relationships can potentially influence the declared transaction value, Indian Customs requires importers in these cases to register with the SVB. The Special Valuation Branch is a specialized unit with in the Customs Department that evaluates whether the relationship between the buyer and seller has affected the transaction value and ensures that the value declared aligns with Rule 3 and Rule 4 of the valuation rules. SVB Registration promotes transparency, protects government revenue, ensures compliance, and reduces the risk of future disputes. For importers, completing this process ensures smoother customs clearance and fosters trust in international trade operations.

[ascgroupindia]

For businesses involved in international trade, particularly those engaged in imports of goods from related parties or at special prices, SVB Registration is a crucial requirement under Indian customs procedures. Special Valuation Branch (SVB) is a unit of the Indian Customs Department that handles cases involving special relationships between buyers and sellers that may affect the declared value of imported goods. This article by ASC Group helps you decode the process of SVB registration, the role of SVB in customs, and the importance of svb valuation.

[legalservicebusiness]

Exim Advisory offers expert SVB Registration services, helping businesses streamline trade processes and ensure regulatory compliance quickly and efficiently.

[eximconsultants]

Special Valuation Branch Registration Cost in Delhi

Exim Consultants provides expert services for Special Valuation Branch (SVB) registration in Delhi at competitive costs. We specialize in handling SVB matters, ensuring smooth compliance with customs valuation rules for import transactions involving related parties. Our experienced team streamlines the registration process, minimizes delays, and offers personalized guidance to help businesses meet their trade requirements efficiently.

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Union Budget 2024: Streamlining Indirect Tax Compliances - Expectations and Challenges

With the Union Budget 2024 set to be presented on July 23, taxpayers and industry experts alike are keenly anticipating changes aimed at streamlining indirect tax compliances, particularly concerning the Goods and Services Tax (GST) and Customs procedures. Saloni Roy, Partner at Deloitte India, sheds light on the current challenges and expected amendments that could significantly impact the tax landscape.

Simplifying GST Compliance

The GST was introduced to simplify India’s tax regime, but taxpayers still face several hurdles. Here are some of the key challenges and expected changes:

Registration Complications

GST registration requires a set of prescribed documents. However, during the application scrutiny, authorities often demand additional documents not listed under the law, such as notarised copies of No Objection Certificates (NOC) or original lease deeds. This leads to delays and additional burdens on taxpayers. A more streamlined and consistent approach to documentation could alleviate these issues.

Biometric Aadhaar Authentication

Currently, key managerial personnel (KMPs) must visit facilitation centres for biometric Aadhaar authentication, which is both time-consuming and cumbersome. A potential solution is allowing KMPs to complete this process at any facilitation centre nationwide, reducing the travel burden and expediting the registration process.

Tax Payments by Overseas Taxpayers

The rise of e-services has expanded the taxpayer base under GST, particularly for online information database access and retrieval (OIDAR) services. However, the process for overseas taxpayers to remit GST payments via Indian intermediary banks is slow and prone to delays. Establishing a more efficient payment system through overseas banks could streamline this process and ensure timely tax remittance.

Addressing IGST Payment Delays

When importing goods, the payment of Integrated Goods and Services Tax (IGST) is made on the ICEGATE portal. However, delays in reflecting these payments on the GSTN portal result in discrepancies in Form GSTR-2B, causing automated notices to be sent to taxpayers. Enhancing the data transmission process between ICEGATE and the GST portal would mitigate these issues.

Challenges in Claiming Input Tax Credit (ITC)

One major challenge under GST is ensuring that vendors have remitted the GST to the government. Currently, there is no online mechanism for buyers to verify this, making it difficult to comply with ITC conditions. Developing a system to track vendor payments would reduce the risk of unwarranted litigation and ease the compliance burden on genuine taxpayers.

Additionally, ITC is often denied when a vendor’s GST registration is cancelled retrospectively. Implementing a real-time tracking system for vendor registration status could prevent such issues and ensure fair treatment of buyers.

Improving Customs Procedures

Customs procedures also face several challenges, and the Budget 2024 is expected to address these:

SVB Investigation Timelines

The Special Valuations Branch (SVB) of Customs often takes years to conclude investigations on imports from related parties, leading to provisional imports and the need for continuous bond submissions. Establishing a clear timeline for SVB investigations and adhering to it would expedite the process and reduce the burden on importers.

Digitisation of Customs

Despite advancements in the clearance of goods, some Customs processes remain manual, such as filing refund applications and replies to notices. Moving these processes online, similar to GST compliances, would save time and align with the ‘Digital Bharat’ mission.

Parting Thoughts

The Union Budget 2024 is poised to set the course for India’s economic trajectory over the next five years. By addressing the aforementioned challenges and streamlining tax compliances, the government can further its goal of making India the fastest-growing economy in the world. Stakeholders are hopeful that the upcoming budget will introduce measures that simplify procedures, reduce litigation, and promote ease of doing business.

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Special Valuation Branch (SVB) in Customs

ASC has a professionals of Special Valuation Branch (SVB), who bring years of expertise to guide importers through the intricacies of Special Valuation Branch (SVB) processes within Customs. Our dedicated experts ensure the streamlined finalization of bill of entry by Customs Authorities and facilitate the seamless renewal of orders in their original form. With ASC's comprehensive services, you can rely on us for a complete range of assistance related to Customs' Special Valuation Branch, ensuring a thorough and efficient process.

[asclegal]

ASC has a professionals of Special Valuation Branch (SVB), who bring years of expertise to guide importers through the intricacies of Special Valuation Branch (SVB) processes within Customs. Our dedicated experts ensure the streamlined finalization of bill of entry by Customs Authorities and facilitate the seamless renewal of orders in their original form. With ASC's comprehensive services, you can rely on us for a complete range of assistance related to Customs' Special Valuation Branch, ensuring a thorough and efficient process.

[consultantlegaal]

The Special Valuation Branch registration is a process under customs administration that aims to determine the correct value of imported goods for the purpose of assessing customs duty and other charges. The SVB registration is typically required when there are doubts about the declared value of goods and the customs authorities need to conduct a more detailed investigation. By doing so, they can foster transparency, fair trade practices, and strengthen their position in the global marketplace. ASC Group has assisted 1000+ companies in custom clearance and assisted in obtaining SVB Registration. Please feel free to contact ASC Group for any further clarification related to SVB or Custom.

[rinkisharma101]

The Special Valuation Branch (“SVB”) has been established to investigate the valuation of goods imported by an Indian party from its related foreign supplier.

[eximadvisory1]

Exim Advisory offers professional SVB Registration services to simplify your import-export compliance process, ensuring timely clearance and hassle-free customs coordination for global trade.

[asc-group01]

ASC Group provides expert SVB registration support for importers transacting with group companies or related parties. We prepare all necessary customs documentation, ensuring smooth processing under Special Valuation Branch requirements.

[ascgroupindia]

ASC Group offers expert assistance for seamless SVB Registration, ensuring smooth customs valuation processes for importers while maintaining full regulatory compliance with precision and efficiency.