{"id":489,"date":"2026-07-16T10:49:34","date_gmt":"2026-07-16T10:49:34","guid":{"rendered":"https:\/\/dgftexim.com\/blog\/?p=489"},"modified":"2026-07-16T10:56:19","modified_gmt":"2026-07-16T10:56:19","slug":"who-should-register-with-svb","status":"publish","type":"post","link":"https:\/\/dgftexim.com\/blog\/who-should-register-with-svb\/","title":{"rendered":"Who Should Register with SVB? A Complete Guide for Importers"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">If your company imports goods from a foreign supplier that is connected to your business, you may have heard about <a href=\"https:\/\/advanceauthorisation.in\/\" data-type=\"link\" data-id=\"https:\/\/advanceauthorisation.in\/\"><strong>Special Valuation Branch (SVB)<\/strong>.<\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Many importers think that <strong>SVB registration means higher customs duty<\/strong>. However, this is one of the biggest misconceptions.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">SVB is <strong>not a penalty<\/strong>. It is a Customs valuation mechanism used to determine whether the relationship between the importer and the foreign supplier has influenced the import price.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In this guide, we&#8217;ll explain <strong>who should register with SVB<\/strong>, using simple language and practical business examples.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\">What is Special Valuation Branch (SVB)?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The <strong>Special Valuation Branch (SVB)<\/strong> is a specialized unit of Indian Customs that examines imports where there is a relationship between the importer and the overseas supplier, or where agreements such as royalty, technical collaboration, trademark licensing, or technical assistance may affect the customs value of imported goods.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Its primary objective is to determine whether the declared transaction value can be accepted under the Customs Valuation Rules.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"512\" src=\"https:\/\/dgftexim.com\/blog\/wp-content\/uploads\/2026\/07\/0-7-1024x512.png\" alt=\"Infographic explaining that the Special Valuation Branch (SVB) of Indian Customs examines imports involving related party transactions and payments such as royalty, licence fees, and technical assistance that may influence the customs value of imported goods.\" class=\"wp-image-509\" srcset=\"https:\/\/dgftexim.com\/blog\/wp-content\/uploads\/2026\/07\/0-7-1024x512.png 1024w, https:\/\/dgftexim.com\/blog\/wp-content\/uploads\/2026\/07\/0-7-300x150.png 300w, https:\/\/dgftexim.com\/blog\/wp-content\/uploads\/2026\/07\/0-7-768x384.png 768w, https:\/\/dgftexim.com\/blog\/wp-content\/uploads\/2026\/07\/0-7-1536x768.png 1536w, https:\/\/dgftexim.com\/blog\/wp-content\/uploads\/2026\/07\/0-7.png 1774w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\">Why Does Customs Check Related Party Transactions?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Imagine this situation.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A company in Germany owns a company in India.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The German company exports machinery worth \u20b91 crore.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Instead of invoicing \u20b91 crore, it invoices only \u20b970 lakh.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If Customs accepts the lower invoice value without verification, the importer may pay lower customs duty.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Therefore, Customs examines whether the relationship between the buyer and seller has influenced the price.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This is exactly where <strong>SVB<\/strong> comes into the picture.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\">Who Should Register with SVB?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Under the Customs Valuation Rules, importers may be required to undergo SVB examination if they have a specified relationship with the foreign supplier or if certain agreements exist that may influence the import value.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Below are the most common situations.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\">1. Same Directors<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">If the importer and foreign supplier have the <strong><a href=\"https:\/\/factorystuffing.com\/\" data-type=\"link\" data-id=\"https:\/\/factorystuffing.com\/\">same directors<\/a><\/strong>, or one company&#8217;s director is also a director in the other company, Customs may consider them related parties.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Example<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Mr. Raj is a director of:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>ABC India Pvt. Ltd.<\/li>\n\n\n\n<li>ABC Singapore Pte. Ltd.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">If ABC India imports goods from ABC Singapore, Customs may examine whether the declared price has been influenced by this relationship.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"938\" height=\"528\" src=\"https:\/\/dgftexim.com\/blog\/wp-content\/uploads\/2026\/07\/image-14.png\" alt=\"&quot;Case 1: Same Directors = Related Parties. Infographic explaining that when an Indian importing company and a Singapore foreign supplier have the same director, Customs may treat them as related parties under Special Valuation Branch (SVB) provisions. Includes an example of Mr. Raj serving as director in both companies, illustrating a related party import transaction.\" class=\"wp-image-491\" srcset=\"https:\/\/dgftexim.com\/blog\/wp-content\/uploads\/2026\/07\/image-14.png 938w, https:\/\/dgftexim.com\/blog\/wp-content\/uploads\/2026\/07\/image-14-300x169.png 300w, https:\/\/dgftexim.com\/blog\/wp-content\/uploads\/2026\/07\/image-14-768x432.png 768w\" sizes=\"auto, (max-width: 938px) 100vw, 938px\" \/><\/figure>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\">2. Business Partners<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Legally recognized business partners are also considered related persons under Customs valuation rules.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Example<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Raj and Amit operate:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>A partnership firm in India<\/li>\n\n\n\n<li>Another partnership firm in Singapore<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">If the Indian partnership imports goods from the Singapore partnership, Customs may examine the transaction under SVB.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"938\" height=\"528\" src=\"https:\/\/dgftexim.com\/blog\/wp-content\/uploads\/2026\/07\/image-15.png\" alt=\"Case 2: Business Partners = Related Parties. Infographic explaining that if an Indian importer and a Singapore supplier are legally recognized business partners, Customs may treat them as related parties under Special Valuation Branch (SVB) rules. Includes an example of Raj and Amit operating partnership firms in both India and Singapore and importing goods between them, illustrating a related party transaction.\" class=\"wp-image-492\" srcset=\"https:\/\/dgftexim.com\/blog\/wp-content\/uploads\/2026\/07\/image-15.png 938w, https:\/\/dgftexim.com\/blog\/wp-content\/uploads\/2026\/07\/image-15-300x169.png 300w, https:\/\/dgftexim.com\/blog\/wp-content\/uploads\/2026\/07\/image-15-768x432.png 768w\" sizes=\"auto, (max-width: 938px) 100vw, 938px\" \/><\/figure>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\">3. Employer and Employee Relationship<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Although uncommon in international trade, Customs rules also recognize employer-employee relationships.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If the importer and supplier have such a relationship, Customs may treat them as related persons.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"938\" height=\"528\" src=\"https:\/\/dgftexim.com\/blog\/wp-content\/uploads\/2026\/07\/image-16.png\" alt=\"&quot;Case 3: Employer &amp; Employee = Related Parties. Infographic explaining that when an Indian importer and a foreign supplier have an employer\u2013employee relationship, Customs may treat them as related persons under Special Valuation Branch (SVB) and Customs Valuation Rules. Shows an Indian company (employer), a foreign company (employee), and an import transaction illustrating a related party relationship for customs valuation.\" class=\"wp-image-493\" srcset=\"https:\/\/dgftexim.com\/blog\/wp-content\/uploads\/2026\/07\/image-16.png 938w, https:\/\/dgftexim.com\/blog\/wp-content\/uploads\/2026\/07\/image-16-300x169.png 300w, https:\/\/dgftexim.com\/blog\/wp-content\/uploads\/2026\/07\/image-16-768x432.png 768w\" sizes=\"auto, (max-width: 938px) 100vw, 938px\" \/><\/figure>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\">4. Common Shareholding (5% Voting Rights Rule)<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">This is one of the most important SVB provisions.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If any individual or entity directly or indirectly owns<a href=\"https:\/\/dgftexim.com\/\" data-type=\"link\" data-id=\"https:\/\/dgftexim.com\/\"> <strong>5% or more voting shares<\/strong><\/a> in both the importer and the foreign supplier, the parties may be considered related.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Example<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Mr. Sharma owns:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>10% voting shares in India Company<\/li>\n\n\n\n<li>10% voting shares in Foreign Company<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Since the same person owns more than 5% in both companies, Customs may classify them as related parties.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"938\" height=\"528\" src=\"https:\/\/dgftexim.com\/blog\/wp-content\/uploads\/2026\/07\/image-17.png\" alt=\"&quot;Case 4: Five Percent Shareholding Rule. Infographic explaining that if the same person directly or indirectly holds 5% or more voting shares in both an Indian importing company and a foreign supplier, Customs may treat them as related parties under the Customs Valuation Rules and Special Valuation Branch (SVB). The example shows Mr. Sharma holding 10% voting shares in both the Indian and foreign companies, making them related parties for customs valuation purposes.\" class=\"wp-image-494\" srcset=\"https:\/\/dgftexim.com\/blog\/wp-content\/uploads\/2026\/07\/image-17.png 938w, https:\/\/dgftexim.com\/blog\/wp-content\/uploads\/2026\/07\/image-17-300x169.png 300w, https:\/\/dgftexim.com\/blog\/wp-content\/uploads\/2026\/07\/image-17-768x432.png 768w\" sizes=\"auto, (max-width: 938px) 100vw, 938px\" \/><\/figure>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\">5. Parent Company and Subsidiary<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">This is the most common type of related-party import.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Examples<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Apple Inc. USA \u2192 Apple India<\/li>\n\n\n\n<li>Toyota Japan \u2192 Toyota India<\/li>\n\n\n\n<li>Siemens Germany \u2192 Siemens India<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Whenever a parent company supplies goods to its subsidiary, Customs may examine whether the declared import price is influenced by the corporate relationship.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"938\" height=\"528\" src=\"https:\/\/dgftexim.com\/blog\/wp-content\/uploads\/2026\/07\/image-18.png\" alt=\"&quot;Case 5: Parent Company and Subsidiary = Related Parties. Infographic explaining that transactions between a foreign parent company and its Indian subsidiary are naturally considered related party transactions under Customs Valuation Rules and may be examined by the Special Valuation Branch (SVB). The example shows Apple Inc. (USA) supplying goods to Apple India Pvt. Ltd. (India), with similar examples of Toyota Japan and Toyota India. Highlights that Customs may review whether the relationship has influenced the import price and emphasizes the need for proper valuation documentation and justification\" class=\"wp-image-495\" srcset=\"https:\/\/dgftexim.com\/blog\/wp-content\/uploads\/2026\/07\/image-18.png 938w, https:\/\/dgftexim.com\/blog\/wp-content\/uploads\/2026\/07\/image-18-300x169.png 300w, https:\/\/dgftexim.com\/blog\/wp-content\/uploads\/2026\/07\/image-18-768x432.png 768w\" sizes=\"auto, (max-width: 938px) 100vw, 938px\" \/><\/figure>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\">6. Common Control<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Two companies may also be considered related if they are controlled by the same holding company.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Example<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Holding Company (Germany)<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">India Company<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Thailand Company<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If India Company imports goods from Thailand Company, and both companies are controlled by the same German holding company, Customs may classify them as related parties.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"938\" height=\"528\" src=\"https:\/\/dgftexim.com\/blog\/wp-content\/uploads\/2026\/07\/image-19.png\" alt=\"&quot;Case 6: Common Control = Related Parties. Infographic explaining that when an Indian importing company and a foreign supplier are controlled by the same holding company, Customs may consider them related parties under the Customs Valuation Rules and Special Valuation Branch (SVB). The example shows a holding company in Germany controlling both an Indian importer and a Thailand supplier, illustrating a common control relationship that may require Customs to examine the declared transaction value.\" class=\"wp-image-496\" srcset=\"https:\/\/dgftexim.com\/blog\/wp-content\/uploads\/2026\/07\/image-19.png 938w, https:\/\/dgftexim.com\/blog\/wp-content\/uploads\/2026\/07\/image-19-300x169.png 300w, https:\/\/dgftexim.com\/blog\/wp-content\/uploads\/2026\/07\/image-19-768x432.png 768w\" sizes=\"auto, (max-width: 938px) 100vw, 938px\" \/><\/figure>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\">7. Joint Control<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Sometimes two or more companies jointly control another company.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In such situations, Customs may also treat the parties as related depending upon the ownership and control structure.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\">8. Family Members<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Family relationships can also create related-party transactions.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Examples include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Father<\/li>\n\n\n\n<li>Mother<\/li>\n\n\n\n<li>Son<\/li>\n\n\n\n<li>Daughter<\/li>\n\n\n\n<li>Brother<\/li>\n\n\n\n<li>Sister<\/li>\n\n\n\n<li>Husband<\/li>\n\n\n\n<li>Wife<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">If the importer and foreign supplier belong to the same family, Customs may examine whether the relationship has affected the transaction value.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"938\" height=\"528\" src=\"https:\/\/dgftexim.com\/blog\/wp-content\/uploads\/2026\/07\/image-20.png\" alt=\"**&quot;Cases 7 &amp; 8: Joint Control and Family Members = Related Parties. Infographic explaining two situations where Customs may treat an Indian importer and a foreign supplier as related parties under the Customs Valuation Rules and Special Valuation Branch (SVB). Case 7 illustrates joint control, where two companies jointly control a third company involved in an import transaction. Case 8 explains that if the importer and supplier are connected through close family relationships, such as father, mother, brother, sister, spouse, son, or daughter, Customs may examine whether the relationship has influenced the transaction value.\" class=\"wp-image-497\" srcset=\"https:\/\/dgftexim.com\/blog\/wp-content\/uploads\/2026\/07\/image-20.png 938w, https:\/\/dgftexim.com\/blog\/wp-content\/uploads\/2026\/07\/image-20-300x169.png 300w, https:\/\/dgftexim.com\/blog\/wp-content\/uploads\/2026\/07\/image-20-768x432.png 768w\" sizes=\"auto, (max-width: 938px) 100vw, 938px\" \/><\/figure>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\">9. Sole Distributor, Sole Agent or Exclusive Distributor<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">If a foreign supplier appoints only one company to distribute or sell its products in India, Customs may examine such arrangements.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Example<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">A global manufacturer appoints one Indian company as its exclusive distributor.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If the conditions under the Customs Valuation Rules are satisfied, the transaction may require SVB examination.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\">10. Technical Collaboration Agreements<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Many companies receive technology, technical know-how, or engineering support from overseas suppliers.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">These agreements are also<a href=\"https:\/\/dgftexim.com\/\" data-type=\"link\" data-id=\"https:\/\/dgftexim.com\/\"> <strong>reviewed under SVB.<\/strong><\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Examples include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Technical Collaboration Agreement<\/li>\n\n\n\n<li>Technical Assistance Agreement<\/li>\n\n\n\n<li>Technology Transfer Agreement<\/li>\n\n\n\n<li>Know-how Agreement<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"938\" height=\"528\" src=\"https:\/\/dgftexim.com\/blog\/wp-content\/uploads\/2026\/07\/image-21.png\" alt=\"**&quot;Infographic explaining two situations that may require review by the Special Valuation Branch (SVB) under Customs Valuation Rules. The left panel explains Sole\/Exclusive Distributor arrangements, where a foreign supplier grants exclusive distribution rights to an Indian company, and Customs may examine whether the relationship has influenced the import price. The right panel explains Technical Collaboration, where a foreign company supplies technology, machinery, or technical know-how and receives royalty, technical assistance fees, trademark licence fees, or similar payments. Customs may examine whether these payments should be included in the assessable value of imported goods.\" class=\"wp-image-498\" srcset=\"https:\/\/dgftexim.com\/blog\/wp-content\/uploads\/2026\/07\/image-21.png 938w, https:\/\/dgftexim.com\/blog\/wp-content\/uploads\/2026\/07\/image-21-300x169.png 300w, https:\/\/dgftexim.com\/blog\/wp-content\/uploads\/2026\/07\/image-21-768x432.png 768w\" sizes=\"auto, (max-width: 938px) 100vw, 938px\" \/><\/figure>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\">11. Royalty and Licence Fee Agreements<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Suppose a Japanese company:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Supplies machinery<\/li>\n\n\n\n<li>Provides technology<\/li>\n\n\n\n<li>Receives royalty every year<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Customs may examine whether these royalty payments are related to the imported goods and whether they should form part of the assessable value.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Similarly, Customs may also examine:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Trademark Licence Fees<\/li>\n\n\n\n<li>Brand Usage Fees<\/li>\n\n\n\n<li>Technical Assistance Fees<\/li>\n\n\n\n<li>Engineering Fees<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"940\" height=\"470\" src=\"https:\/\/dgftexim.com\/blog\/wp-content\/uploads\/2026\/07\/image-22.png\" alt=\"&quot;Royalty &amp; Licence Fee Agreements infographic explaining how Customs may examine royalty, licence fees, and related payments under the Customs Valuation Rules and Special Valuation Branch (SVB). The example shows a Japanese company supplying machinery, providing technology, and receiving annual royalty payments. It highlights that Customs may determine whether royalty payments are related to the imported goods and should be included in the assessable value. The infographic also covers trademark licence fees, brand usage fees, technical assistance fees, and engineering fees that may be examined during customs valuation.\" class=\"wp-image-499\" srcset=\"https:\/\/dgftexim.com\/blog\/wp-content\/uploads\/2026\/07\/image-22.png 940w, https:\/\/dgftexim.com\/blog\/wp-content\/uploads\/2026\/07\/image-22-300x150.png 300w, https:\/\/dgftexim.com\/blog\/wp-content\/uploads\/2026\/07\/image-22-768x384.png 768w\" sizes=\"auto, (max-width: 940px) 100vw, 940px\" \/><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">Frequently Asked Questions (FAQs)<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\">Is SVB registration mandatory for every importer?<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">No. SVB generally applies where the importer and supplier are related under the Customs Valuation Rules or where certain agreements may influence the import value.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Does every related-party transaction result in higher customs duty?<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">No. Customs only verifies whether the relationship has influenced the declared price.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Does royalty always become part of customs value?<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Not always. Whether royalty is includible depends on the terms of the agreement and the applicable Customs Valuation Rules.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Can imports continue during SVB proceedings?<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Yes. Imports generally continue while Customs examines the valuation, subject to applicable procedures.<\/p>\n\n\n\n<h1 class=\"wp-block-heading\"><strong>&nbsp;<\/strong><\/h1>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>If your company imports goods from a foreign supplier that is connected to your business, you may have heard about Special Valuation Branch (SVB). Many importers think that SVB registration means higher customs duty. However, this is one of the biggest misconceptions. SVB is not a penalty. It is a Customs valuation mechanism used to&hellip;<\/p>\n","protected":false},"author":1,"featured_media":503,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1,57],"tags":[],"class_list":["post-489","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-daily-dgft-updates","category-daily-update"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.0 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Who Should Register with SVB? Explained with Examples<\/title>\n<meta name=\"description\" content=\"Learn who should register with SVB, when SVB registration is required, related party import transactions, and how Indian Customs determines transaction value.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/dgftexim.com\/blog\/who-should-register-with-svb\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Who Should Register with SVB? 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