SVB Certificate India: Eligibility, Process & Benefits (2025)

INTRODUCTION

Importing goods into India poses some sort of regulatory frameworks, to which one will find itself on the precedence of such a task as SVB under customs. The SVB Certificate India, about related-party imports, is prime for business to make sure the valuation of imported goods is kept fair and transparent. Absence of proper SVB clearance may attract events such as delays at customs, increased duties, and legal complications.

In this blog, we will cover SVB procedure customs, eligibility criteria, benefits, and how ASC Group makes getting an SVB Certificate India a smooth and compliant process for imports.

What is SVB Under Customs?

The Special Valuation Branch (SVB) under Customs is a part of the Indian Customs Department, which investigates and determines the fair value of goods imported under related-party transactions. This process ensures that the import value is not under-reported to evade customs duty.

SVB for Import applies when there is a special relationship between the importer and the supplier, which may influence the pricing of the goods.

Who Needs an SVB Certificate India?

The following categories of importers need to obtain an SVB Certificate India:

  • Companies importing goods from their parent, subsidiary, or associated enterprises.
  • Businesses undertaking transactions with exclusive suppliers or distributors.
  • Importers using royalties, license fees, or technical agreements that affect the value of the product.
  • Firms receiving free supplies, post-sale services, or other adjustments that affect the import value.
  • If your business is in any of these categories, you need to adhere to the SVB procedure customs to avoid complications.

Problems Encountered Without an SVB Certificate India

Importers who do not get the SVB Certificate India will face:

1. Delayed Customs Clearance

If the shipments are not certified with the SVB, customs may hold them for valuation reviews.

More paperwork and verification increase the processing time.

2. Higher Duty Payments

Where the transaction is deemed to have been valued improperly, customs authorities may charge higher customs duties.

Importers may experience duty adjustments retrospectively, which can affect financial planning.

3. Legal and Compliance Concerns

Non-compliance with the SVB procedure by customs may result in fines.

There may be scrutiny of the company, and a detailed audit along with explanations.

4. Business Operations Uncertainty

Valuation delays and disputes may stem from problems in the supply chain.

There could be inconsistent pricing for importers, affecting cost estimates and profitability.


SVB Procedure Customs: Step-by-Step Process

Businesses seeking to acquire an SVB Certificate India have to undergo the following process:

Step 1: Identifying the Need for SVB Registration

Check if your import transaction involves a related-party deal

Verify transfer pricing, royalty, or exclusivity clauses in contracts.

Step 2: Filing the SVB Declaration

Submit the questionnaire for SVB with necessary documents to customs

It comprises financial statements, invoice, supplier agreements, and other value particulars.

Step 3: Provisional Appraisal of Merchandise

Until SVB clearance is granted, customs may levy additional duties under a provisional appraisal.

Importers must pay the additional duty deposit (EDD), which is usually 5% of the assessable value, until final approval.

Step 4: SVB Investigation and Hearing

The customs department examines submitted documents to determine the accuracy of the transaction value.

If there are discrepancies, hearings are held to examine the justifications for pricing.

Step 5: Issuance of SVB Certificate

Once the valuation is declared reasonable, the SVB provides a certificate allowing the import value.

The certificate is valid unless there is any alteration in the conditions of the transaction.

Step 6: Refund of Extra Duty Deposit

Once it is approved, the business is eligible to claim back the Extra Duty Deposit made at the time of provisional assessment.

Refund claims must be submitted within the time frame set by the customs authority.

Advantages of SVB Certificate India

Having an SVB Certificate India offers several advantages to importers:

✔ Custom Clearance: Ensures faster processing without valuation holds.

✔ Saving on Duty Cost: Avoidance of excessive customs duties and consequent financial strain.

✔ Law Compliance: Saves businesses from contravention under customs and trade laws.

✔ Supply Chain Integrity: Prevents disruption in imports, thus saving time for advance planning.

✔ Transaction Transparency: Enhances importers' and customs authorities' trust.

How ASC Group Aids with SVB for Import?

The customs procedure of the SVB is often lengthy and involved. In ASC Group, seek professional support to make SVB compliance smooth going.

1. Expert Advisory

Determine if your business requires an SVB Certificate India depending on the transaction.

Dictate which documents need to be prepared and what is the compliance framework needed.

2. Non-Complex Application Submission

Prepare the SVB declaration with data correctly filled

Ensure to submit the paperwork complete to not experience delay.

3. Representation before SVB hearings

ASC Group supports response to customs inquiries and furnishing justification for value of transaction to clear up concerns for customs valuation.

Representation before Custom authorities for settling issues on valuation

4. Support for Refund of Additional Duty Deposits

Assistance in submitting refund claims for the additional deposit duty made post-SVB clearance.

Ensure timely processing and adherence to procedures for refunds

5. Post-SVB Compliance

Provide regular updates on regulatory changes relevant to SVB import.

Support in maintaining compliance if any changes occur in transaction terms.

Frequently Asked Questions (FAQs) About SVB Procedure Customs

Q1: Is the SVB Certificate India mandatory for all importers?

A1: No, the certificate is required only for businesses importing goods from related parties or where special pricing arrangements exist.

Q2: How long does the SVB procedure customs take?

A2: The investigation at SVB normally takes between 3 to 6 months, depending on the type of case and completeness of supporting documents.

Q3: What is an Extra Duty Deposit (EDD), and what is its refundable time?

A3: EDD is a provisional customs duty that is charged during the assessment of the SVB investigation. A claim for refund can be made after the SVB investigation has been concluded.

Q4: Can ASC Group help on an already rejected SVB application?

A4: Yes, ASC Group offers re-filing application support, addressing any discrepancies in applications, and acting as the business's agent when appearing before customs authorities for approval.

Q5: For how long is the SVB Certificate India valid?

A5: The certificate remains valid till a change is noticed in transaction conditions, calling for fresh review.

Conclusion

The SVB Certificate India is a critical requirement for importers dealing with related-party transactions. Ensuring compliance with the SVB procedure customs not only facilitates seamless imports but also protects businesses from legal and financial risks.

With the complications involved, getting into a relationship with ASC Group can save a lot of time, prevent a compliance issue or two, and ensure a seamless import process. Contact ASC Group today for professional advice on the SVB Certificate India and problem-free customs clearance.

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