Industry seeks Customs SVB scrapping

Ahead of the Union Budget 2026-27, industry has demanded the scrapping of Customs Special Valuation Branch (SVB), a specialised unit that examines whether prices of imports between related parties, such as an Indian subsidiary and its foreign parent, have been influenced by their relationship.

- MONIKA YADAV

Businesses argue that while the SVB was set up to prevent undervaluation and revenue leakage, its functioning has increasingly led to prolonged delays, uncertainty in duty liability, and high compliance costs.

Under the current framework, importers are required to disclose related-party transactions at the time of filing a Bill of Entry. If the port Customs officer believes the relationship may have influenced pricing, the case is referred to the SVB.

Imports are then cleared under provisional assessment against a bond, while the SVB conducts a detailed investigation into pricing, cost structures, and contractual arrangements.