TaxTMI 
TaxTMI 
Customs–New SVB Branch at Bangalore-reg.
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.... by the Additional Commissioner of Customs, Air Cargo Complex, Bangalore. 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 S....
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.... case may be, is presented under section 50". Thus, the fact of "relationship" as defined under Valuation Rules itself would rule out valuation as per transaction 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 ....
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....e price is not influenced because of the relationship, there is no need for any reference to Special Valuation Branch. The Special Valuation Branch at Bangalore, would handle the investigation into valuation of such importers. No application or representation 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 i....
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....nformation that is required. Upon receipt of reply to the questionnaire within the prescribed time limit, the SVB will decide within 7 days whether the importer has replied to the questionnaire substantively. Otherwise, immediate further information not furnished will be sought before taking step for finalization 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 th....
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....oading on the intranet on a monthly basis. Encl: Questionnaire and List of documents to be Submitted Sd/- (B. BHATTACHARYA) COMMISSIONER ANNEXURE - A Questionnaire to be filled by importers/exporters who are related to the foreign supplier/purchaser Sl. No. Particulars 1 Name of the importer/exporter with full address of the Head of 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....
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....family? 14a) Whether the importer is a sole agent, distributor or indentor appointed by the foreign suppliers? b) Give the full particulars of all the suppliers of goods from outside India for whom the importer acts as agents/distributors indentors? 15 Whether the importer is a branch or subsidiary of the supplier of the importer goods? (The word subsidiary has the same meaning as in section 4 of the Companies Act) 16a) Whether the importer is engaged in the local manufacture of any products of the suppliers of the imported goods? b) If yes, whether the imported items are used in such manufacture? c) 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....
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....e imported goods? Furnish the heads of accounts under which other payments, if any, made to the supplier of the imported goods, and details of the payments/transfer of funds in any form. 26 Furnish the total quantity and FOB value of imports made by the importer from the same supplier during the last three years. 27 Amount of royalty/technical know how fee/licence fee any other fee paid or payable by the importer to the supplier of the imported goods. 28 Furnish the full details of amounts, if any, received by the importer in the form of agency commission, overriding commission or any other remuneration received either from other importers in India or from the supplier of the imported goods. 29 Expenses incurred by the importer on behalf of the supplier, by understanding or agreement with, or under instructions from the supplier of the imported goods, eg. advertising, propaganda expenses or any other expenses for the promotion of the imported goods. 30 Whether the supplier of the goods supplies identical, similar or connected items to buyers/branches/collaborators in other countries? If yes, prices at w....