Refund Solutions & SVB Order Finalisation

Refund solutions

We offer review and examination of previous transactions with respects to over payment of duties where goods have been accounted for incorrectly to Customs within a specific time frame. Refunds and Drawbacks amounts can be significant and make a meaningful contribution to a company’s cash flow.

Our refund services include:

  • Refund of Extra Duty Deposit ( EDD ) after SVB Order Finalization.
  • Special Additional Duty ( SAD ) Refund.
  • Drawback Refund.
  • Any type of Duty Refund.

SVB Order Finalization

We are skilled in handling all kinds of Special Valuation Branch ( SVB ) matters and getting SVB Orders as per Custom Circular nos. 4/2016-Customs and 5/2016-Customs, both dated 9 February, 2016 whereby revamping the old way of conducting Customs Special Valuation Branch (SVB) proceedings, which were previously prescribed under circular no. 11/2001-Customs Dated 23 February, 2001.

  • Board has also taken cognizance of the WCO’s Guide to Customs Valuation and Transfer Pricing (June 2015) and the fact that the circulars 1/98 and 11/2001 were based upon the Customs Valuation (Determination of Price of imported goods), Rules, 1998, which have since been suspended by the Customs Valuations (Determination of Value of Imported Goods Rules, 2007..
  • The Special Valuation Branches shall function under the supervisory control of the jurisdictional Chief Commissioner/Principal Commissioner/Commissioner. DGOV shall continue to support the SVBs by issuing advisories on legal issues and guidance notes.

Our refund services include:

  • Checking of the documents received to ensure conformity with requirement.
  • Preparations of relevant documents to file in SVB.
  • Processing of documents in SVB.
  • Obtaining SVB order for nil – loading.
  • Co-ordination with SVB Dept.
  • Final assessment of provisionally assessed Bill of Entry.
  • Co-ordination with any other concerned Department.

PDS undertakes the new process of SVB Order Finalization with utmost professionalism and efficiency :
For cases pending renewal of the SVB order, where there are changes in the facts, we request the importer to submit a declaration accordingly as per Customs Circular no 5/2016

On receipt of such declaration, the Customs Authorities would continue the SVB proceedings as if it were a new case. The collection of EDD in such cases would be reassessed in terms of the procedures.

For ongoing proceedings not involving renewal of any past SVB order, collection of EDD would Be reassessed in terms of the procedures described hereafter:

Collection of EDD would be discontinued if the importer has already submitted the required documents

In case the EDD is already being collected at a higher rate of 5% due to non-submission of the documents, the Commissioner can take recourse under other provisions of law to obtain the relevant documents

Previously, the jurisdiction of the Customs authorities for SVB proceedings was determined on the basis of the location of the importer’s corporate office. Now if the imports are taking place through the Customs Houses at Mumbai/ Delhi/ Chennai/Kolkata/ Bangalore, the importer can select the SVB of the Customs House at the location of import or on the basis of proximity to its corporate office.

In cases where the import transaction can be the subject matter of SVB investigation, the importer may file a bill of entry in advance and give the specified details, at the time of importing the first shipment. Within 3 days of filing such bill of entry, the proper officer has to assess whether the case needs to be Referred to the SVB, and submit the findings to the Commissioner of Customs.

Once the case is referred to the SVB, the importer would need to provide further information as per the specified questionnaire within 60 days.

During the investigation, no EDD will be recovered, If the importer does not submit the required information and documents for SVB proceedings within 60 days of its requisition, security deposit @ 5% of the declared assessable value of the shipment has to be imposed, for a period not exceeding the

Next three months. The security deposit can be given by way of a cash deposit or a bank guarantee.

If the importer has not provided the required documents within 60 days of its requisition, he would be given an additional period of 60 days; if even after this additional period, the documents are not Submitted, the Commissioner can take recourse under other provisions of law to obtain the relevant Documents.

The SVB proceedings have to be completed within a period of 2 months from the submission by the Importer of information asked for when making the reference to the SVB. The jurisdictional Commissioner can grant an extension of a further 2 months for completion of proceedings. Thereafter, the matter has to be referred to the jurisdictional Chief Commissioner, who can extend the time as he deems fit.

On completion of proceedings, the SVB, would submit its findings to the Principal Commissioner/ Commissioner. After his approval, the SVB would prepare an investigation report and communicate It to all locations where the imports are provisionally assessed.

If the investigation report accepts the transaction value, the provisional assessments would be finalized Accordingly. However, if the investigation findings indicate that the price is influenced by the relationship, then a show-cause notice would be issued within 15 days of receipt of investigation report. In cases of imports from multiple customs locations, multiple notices would be issued, and a common adjudicator would be appointed.

The adjudicating authority would issue an order after following the principles of natural justice. This order would be appealable.

In case of any change in circumstances of sale, terms and conditions of sale, etc., the importer has to declare the same to the customs authorities, who would examine the transactions. The jurisdictional Commissioner may refer the matter to the SVB where required. Accordingly, the system of renewal of the SVB orders has been discontinued.

The terms of reference of the SVB are now amended to provide that no SVB proceedings would be carried out in the following cases:
Import of samples and prototypes from related sellers

Imports from related sellers, where the entire customs duty is unconditionally exempted or has a ‘nil’ rate

Transactions involving imported goods having value less than INR 0.1 million, and where, cumulatively, these transactions do not exceed INR 2.5 million in any financial year.