Major reforms expected in customs procedures

AS FINANCE MINISTER Nirmala Sitharaman is set to present the Union Budget for FY27 in Parliament on February 1, industry stakeholders and tax experts are expecting significant reforms in the customs procedures, particularly the simplification of the special valuation branch (SVB) process.

- KULDEEP SINGH

The SVB, a specialised unit under the Central Board of Indirect Taxes and Customs (CBIC), handles valuation of imported goods in transactions involving related parties, such as multinational companies importing from overseas group entities. This ensures that declared values reflect fair market prices, preventing undervaluation and revenue leakage. However, the current process is often not appreciated for being resource-intensive, time-consuming, and prone to delays, leading to prolonged assessments and disputes.