IS SVB APPLICABLE ON HIGH SEAS SALES SHIPMENT

[Guest]

DEAR SIR/MADAM

IS SVB ORDER APPLICABLE ON HIGH SEAS SALE SHIPMENT ?

FOREIGN SUPPLIER ABC IMPORT IN INDIA TO HIS RELATED IMPORTER ABC . AND ABC HIGH SEAS SALE THIS SHIPMENT TO XYZ BEFORE THE TIME OF ARRIVAL AT SEA PORT.

MY QUESTION IS THAT IN ABOVE CASE SHIPMENT SVB ORDER IS APPLICABLE OR NOT.

REGARDS/SUNIL

[Mahir S]

Importers who are related to the supplier in terms of Rule 2(2) of the Customs Valuation Rules are required to register with SVB.

Hence, please verify the applicability in terms of the above said rule.

[YAGAY andSUN]

In case of related parties where the prices are influenced by the relationship would come under SVB Valuation. If there is any relation between you and the ultimate supplier then it will be applicable otherwise not.

AI Summary

Related party valuation: SVB registration and valuation apply when supplier-importer relationships influence prices for high seas sales shipments. Applicability of the SVB order for high seas sale shipments depends on related party valuation: importers related to the supplier under Rule 2(2) must register with the SVB and are subject to SVB valuation. If the supplier-importer relationship has influenced the price, SVB valuation applies; absent a relationship or price influence, SVB provisions do not apply.