If your Indian entity imports goods from its overseas parent, a sister company or any related party, customs does not simply accept the price on your invoice. It asks a fair question: is that price a genuine market price, or has it been set by the relationship between buyer and seller? The unit that answers that question is the Special Valuation Branch (SVB) - and for multinational subsidiaries, getting through it smoothly is one of the most important customs tasks there is.
We handle these matters regularly, and the pattern is clear: the businesses that struggle are the ones that treat SVB as a formality. Here is what it actually involves.
What Is the Special Valuation Branch?
The SVB is a specialist customs unit that examines the valuation of goods imported between related parties. Its job is to check whether the relationship has influenced the price - in other words, whether your import price is at "arm's length" or has been set artificially low (to reduce duty) or high (to move profits).
SVBs operate at five customs locations: Bengaluru, Chennai, Delhi, Kolkata and Mumbai. When a related-party import is flagged, the case is referred to the SVB at the relevant port for investigation.
When Does SVB Apply to You?
SVB scrutiny is triggered when the buyer and seller are "related" under the customs valuation rules - typically where one controls the other, both are controlled by a third party, they are part of the same group, or similar connections exist. It also comes into play where certain payments - such as royalties, licence fees or a share of resale proceeds - flow from the Indian importer to the foreign supplier as a condition of sale.
If you import from your own group, assume SVB applies and plan for it from the first consignment.
How the SVB Process Works
At a high level, the process runs like this: your related-party import is referred to the SVB, you submit a detailed questionnaire and supporting documents on the relationship and pricing, the SVB examines whether the relationship influenced the value, and it issues a finding - either accepting your declared transaction value or loading it. Historically, related-party imports could attract an extra duty deposit while the investigation was pending; the current framework aims to reduce that burden and speed up finalisation, and AEO-certified importers get faster SVB processing.
Importing from your parent or group company? We will prepare your SVB submission so the investigation runs cleanly the first time - and flag any royalty or pricing issue before customs does. Book a free SVB consultation or message us on WhatsApp.
What SVB Looks At
The heart of an SVB review is whether your price would be the same if you and your supplier were unrelated. To test that, the branch typically examines your transfer pricing approach, comparable prices for identical or similar goods, the treatment of royalties and licence fees, any post-import payments to the supplier, and the commercial rationale for your pricing. Consistency across your customs valuation and your transfer-pricing documentation matters enormously - divergence between the two is one of the fastest ways to invite questions.
Documents You Will Need
Expect to compile the SVB questionnaire, your agreements with the related supplier (including any royalty or licence agreements), transfer-pricing documentation, financial statements, price lists, and evidence supporting the declared value. The quality and consistency of this file largely determines how quickly the case is finalised.
A Mistake We See Often
The most common error is answering the SVB questionnaire in isolation from the company's transfer-pricing position. Customs valuation and income-tax transfer pricing pull in opposite directions - one wants a defensible import value, the other a defensible profit allocation - and an inconsistent story between them is a red flag. The businesses that clear SVB fastest are the ones whose customs and tax positions tell one coherent story. A trade compliance audit before you file is the cleanest way to get there.
People Also Ask
What is SVB in customs?
The Special Valuation Branch (SVB) is a specialist customs unit that examines whether the relationship between a related importer and supplier has influenced the declared import price. It operates at Bengaluru, Chennai, Delhi, Kolkata and Mumbai.
Who needs SVB registration?
Importers buying from a related party abroad - such as a parent, sister or group company - and importers making royalty, licence-fee or similar payments to their supplier as a condition of sale.
Does SVB apply to every related-party import?
SVB scrutiny is triggered for related-party transactions and certain payment arrangements. Not every case results in a loaded value, but related-party importers should assume the process applies and prepare for it.
How long does an SVB investigation take?
It varies with the completeness of your submission. A well-prepared file with consistent valuation and transfer-pricing documentation moves fastest; gaps and inconsistencies cause delays.
Does AEO help with SVB?
Yes. AEO-certified importers receive faster completion of SVB proceedings, which is one more reason related-party importers often pursue AEO certification.
What happens if SVB rejects my declared value?
The SVB can load (increase) your assessable value, raising the duty payable on your related-party imports. A strong, consistent submission is your best protection against this.
Final Recommendation
If you import from your own group, treat SVB as a core compliance project, not a form to fill in. Align your customs valuation with your transfer-pricing position, compile a complete and consistent file, and consider AEO to speed future clearances. Get it right once and related-party imports become routine; get it wrong and every consignment carries uncertainty. For related reading, see our guides on customs valuation and AEO certification.
Facing an SVB reference - or expecting one? We will build your submission and represent your valuation so it holds up. Book a free consultation or get started via the enquiry form.
