{"id":102615,"date":"2024-01-17T09:26:46","date_gmt":"2024-01-17T09:26:46","guid":{"rendered":"https:\/\/octagona.com\/?p=102615"},"modified":"2024-01-23T18:26:26","modified_gmt":"2024-01-23T18:26:26","slug":"special-valuation-branch-india","status":"publish","type":"post","link":"https:\/\/octagona.com\/en\/special-valuation-branch-india\/","title":{"rendered":"Special Valuation Branch, what you need to know if you are selling in India"},"content":{"rendered":"

Le <\/span>Indian companies<\/b> who choose to <\/span>import <\/b>assets from companies located outside India must undergo the procedure called <\/span>Special Valuation Branch <\/b>(SVB), considered extremely long and complex.\u00a0<\/span><\/p>\n

But what is meant by Special Valuation Branch? How does it work in practice? Let's find out together and see why it is necessary to know what it is if the goal is to sell in India.\u00a0<\/span><\/p>\n

Cosa s\u2019intende per Special Valuation Branch<\/h2>\n

The Special Valuation Branch in India is nothing more than a\u2019<\/span>specialized institution<\/b> in the\u2019<\/span>investigation <\/b>of transactions involving companies with special relationships and some special characteristics that could have an impact on the value of imported goods.<\/span><\/p>\n

Going into detail, the Indian Customs Department houses this specialized unit that plays a key role in examining transactions involving Indian importers and foreign suppliers with <\/span>close ties of affiliation<\/b>. We refer to joint ventures, partnerships, or relationships between holding companies and subsidiaries.<\/span><\/p>\n

In altre parole, l\u2019SVB ha l\u2019autorit\u00e0 di esaminare le transazioni tra un importatore indiano e un fornitore estero collegato. Questo controllo viene avviato quando le parti coinvolte sono considerate \u201c<\/span>related<\/b>\u201d secondo la definizione della regola 2(2) delle <\/span>Customs Valuation<\/b><\/a> (Determination of Value of Imported Goods). <\/span>Rules<\/b>, 2007.<\/span><\/p>\n

Qual \u00e8 l\u2019obiettivo principale dell\u2019SVB?<\/h2>\n

Lo <\/span>purpose <\/b>is to ensure that these relationships <\/span>do not influence<\/b> unduly the terms of transactions and prices, in compliance with the Customs Valuation Rules. In addition, the Special Valuation Branch also deals with complex situations that require adjustments to the transaction value declared by importers.\u00a0<\/span><\/p>\n

But why does this happen? One must keep in mind that customs duties are calculated on the \u201c<\/span>assessable value<\/b>\u201d of goods, which is the value of the transaction <\/span>concordat <\/b>between the supplier and the importer, and is subject to some inclusions (such as transportation, insurance, etc.) as long as the buyer and seller are not related.<\/span><\/p>\n

Therefore, in cases where the buyer and seller of the goods are <\/span>connected<\/b>, the value must be determined according to the Customs Valuation developed in this regard. Here is where precisely the SVB comes into play.<\/span><\/p>\n

\"Special<\/h2>\n

Cosa s\u2019intende col termine \u201cCollegato\u201d?<\/h2>\n

In order to understand the effective application of this procedure, it is necessary to be clear about the concept of the term \u201crelated\u201d under the customs regulations.\u00a0<\/span><\/p>\n

We see that <\/span>the buyer <\/b>and the <\/span>seller <\/b>will be considered \u201c<\/span>connected<\/b>\u201d if:<\/span><\/p>\n