TaxTMI 
TaxTMI 
Customs–New SVB Branch at Bangalore-reg.
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.... The functions of the SVB, its organizational structure, etc., are detailed hereunder for information of the trade and industry. 3. What is Special Valuation Branch? Special Valuation Branch is a Unit of the Customs Commissionerate/formation, specializing in investigating the transactions involving relationship between the supplier and the importer and certain other special features like Technical Collaboration between the parties, etc. Special Valuation Branch examines the influence of relationship on the invoice value of the imported goods in respect of transactions between related parties. In respect of Technical Collaboration Agreements and Joint Venture Agreements, the terms and conditions of these agreements are examined to arrive at the conclusion, whether the existence of such agreement has influenced the invoice value of the imports. 4. Organizational Structure Special Valuation Branch will be headed by an Additional Commissioner of Customs and assisted by a Deputy/Assistant Commissioner of Customs, Appraising Officers, Executive Officers and necessary Ministerial Staff. 5. Who should register with SVB? At present, Rule 3(3)(a) of the Customs Valuation (Determi....
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.... value. Hence, Importers who are related to the supplier in terms of Rule 2(2) of the Customs Valuation (Determination of Value of Imported Goods) Rules, 2007, Rule 2(1) of the Customs Valuation (Determination of Value of Export Goods) Rules, 2007, and those cases which fall under the purview of Section 14(1) of the Customs Act, 1962, are required to register with SVB. Rule 2(2) of the Customs Valuation (Determination of Value of Imported Goods) Rules, 2007/Rule 2(1) of the Customs Valuation (Determination of Value of Export Goods) Rules, 2007, reads as follows:- "For the purpose of these rules, persons shall be deemed to be "related" only if:- i) they are officers or directors of one another's businesses; ii) they are legally recognized partners in business; iii) they are employer and employee; iv) any person directly or indirectly owns, controls or holds 5 per cent or more of the outstanding voting stock or shares of both of them; v) one of them directly or indirectly controls the other; vi) both of them are directly or indirectly controlled by a third person; vii) together they directly or indirectly control a third person; viii) they are members ....
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....ation to the Special Valuation Branch directly by the importers will be considered. All references shall be made through the Appraising Groups at the time of filing of the Bill of Entry. On receipt of the reference from Appraising Groups, the case is registered in Special Valuation Branch and a PD Circular for provisional assessment is issued. Copies of the same are issued to the importer and to the Appraising Groups as well. The importer shall indicate the PD Circular Number at the time of provisional assessment of all their imports in the Appraising Group and execute PD Bond with 1% Extra Duty Deposit on the assessable value of the goods. Along with the PD Circular a questionnaire in "Annexure A" is also issued to be filled up by the importer along with the list of all documents required to be submitted. The amount of extra duty deposit at present kept at 1% will be continued. The Board has however decided that if the importer does not furnish complete reply to the questionnaire within 30 days of receipt of the 'Questionnaire' by the importer, the extra duty deposit will be increased to 5% till the date of receipt of reply by the Department. The importers falling under ....
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....alization of investigation. After furnishing of all the information, the importer may, if they so desire, appear for personal hearing and explain their case with regard to the acceptance of transaction value or otherwise. Thereafter, an Order-In-Original will be issued by the D.C(SVB) and the same will be intimated to the importer by registered post and copies will be endorsed to all the Appraising Groups. Where provisional assessment is being resorted to the investigation and finalization of the assessment must be completed within four months from the date of reply. If no decision is taken within 4 months, the extra duty deposit should be discontinued and the concerned DC/AC will be held responsible for inexplicable delay in finalization. Once the case is finalized by the Special Valuation Branch, the provisional assessments pending in the Appraising Groups will be finalized and the extra duty deposit paid at the time of provisional assessment will be adjusted in accordance with the SVB order. In all cases of loading, it is mandatory for the importer to quote Order in Original No. of SVB and indicate the percentage of loading at the time of filing of each Bill of Entry by them. If....
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....Corporate office, registered office, administrative office/factory and PAN No. 2 Whether the importer/exporter is a proprietorship/partnership/private limited company/public limited company/branch office of company incorporated outside India. 3 a) Name of the foreign supplier/purchaser from whom the goods are imported/to whom the goods are exported. b) Nature of the business relationship of the importer/exporter with the supplier/purchaser (eg. subsidiary company branch office/distributor/agent c) Nature of the transaction- eg. consignment sales, branch transfer or any other 4 Whether any officer or director in the company/firm of the importer holds any office in any company incorporated outside India? If so, whether such a company is related to/associated in any way with the supplier of the imported goods? Also give details of converse situation, if applicable. 5 Whether the importer/exporter and the supplier/purchaser of the goods are partners in business? 6 Whether there is an employer-employee relationship between the importer/exporter and the supplier/purchaser of the imported/exported goods and vice versa? 7 Whether the foreign supplier/purchaser or any of the....
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.... If yes, whether the imported items are manufactured or exclusively supplied by the suppliers? d) Whether the product manufactured by the importer/exporter using the imported goods is sold under a trade mark, design or patent owned or controlled by the supplier/purchaser of the goods or any person related to them? 17 Whether the imported goods are component parts in the SKD/CKD condition for local assembly into finished goods? If yes, furnish a complete list of items imported in CKD/SKD condition. 18 In the case of (16) and (17) above, are the same components imported by any person to India as spares for stock and sale? If so, please furnish the prices at which such imports are made. 19 Whether the importer has imported any capital goods, plants, machinery, equipment etc., from the foreign supplier of the imported goods or its related or associated concerns or persons? Please furnish details. 20a) Is any amount paid or payable, directly or indirectly, to or on behalf of the supplier of the imported goods for engineering, development, art work, design work and plans and sketches undertaken elsewhere than in India and connected with the production of imported goods? b) A....
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....0 Whether the supplier of the goods supplies identical, similar or connected items to buyers/branches/collaborators in other countries? If yes, prices at which such transaction have taken place, for the last one year. ANNEXURE - B LIST OF DOCUMENTS REQUIRED TO BE SUBMITTED IN CASE OF SOLE AGENTS/SOLE DISTRIBUTION/SOLE CONCESSIONAIRE Sl.No. Document to be submitted 1 Agency agreements of the importer with any person 2 Specimen copies of the import invoices and Bills of Entry 3 Specimen copy of invoices for import of identical, similar or connected goods by this part through the present importer 4 Specimen copy of invoices for import of identical, similar or connected goods by a company associated with the importer 5 Commission note and credit notes in case of amounts received from outside India 6 Annual report of the importer's business concern for last three years 7 Pricelists for import and sale of the imported goods. 8 Statement regarding percentage of shareholding of/in any Indian company along with common directors 9 Statement regarding equity participation of/in foreign company 10 Indent/invoices wise statement of commission received in last three ....