Special Valuation Branch (SVB Customs) is a unit of the Custom House the function of which is to investigate the transactions involving the association between the suppliers including any technical collaboration between the parties etc. All those importers importing goods from related parties or having any technical collaboration with their related parties are required to file a declaration about the relationship at the time of filing a bill of entry before the jurisdictional customs authorities i.e. Appraising Group.

The Group based on the circumstances of sale and the invoice value of the identical or similar goods will make a reference to the SVB order (Special Valuation Branch) for further investigation of the influence of connection on assessable value. If the importer is able to demonstrate with the help of the invoice value of sales to unrelated buyers that the import values are not influenced by the relationship. In that case, there is no requirement for any recommendation to SVB in customs.

Also, the bill will be evaluated based on those coexisting import values. Although, if there will be no coexisting imports, and the contrast of values cannot be calculated at the time of SVB in customs evaluation of bill of entry, then a recommendation to Special Valuation Branch needs to be made by the Appraising Group with the prior approval of the Commissioner of Customs.

The case is registered with the Special Valuation Branch order based on the reference from the Appraising Group and a PD circular for provisional assessment is issued to the importer as well as the Appraising Group. The importer is required to indicate the PD circular no. at the time of provisional assessment of all its imports and execute PD bond with extra duty deposit at the prescribed rate on the assessable value of goods along with other details as required by the questionnaire issued by the Appraising Group.

Based on the details submitted by the importer an order in original is passed by the D.C. (Special Valuation Branch) which is intimated to the importer and also to the Appraising Group. The SVB order in original is valid for a period of three years and requires renewal.