The Special Valuation Branch (SVB) is a unit within the customs department in many countries that is responsible for determining the value of goods imported into the country. The SVB was established to ensure that the correct value is assigned to imported goods for customs duty purposes. In this article, we will provide a comprehensive overview of the SVB in customs, including its functions, procedures, and benefits.
Functions of the Special Valuation Branch
The primary function of the Special Valuation Branch is to determine the value of goods imported into the country for customs duty purposes. This valuation is important because it affects the amount of customs duty that is payable on the goods. The SVB also ensures that the correct value is assigned to the goods and that there is no under-valuation or mis-valuation of the imported goods.
The SVB achieves this by conducting an investigation into the transaction value of the goods. The transaction value is the price paid or payable for the goods when sold for export to the country of importation. The SVB may also consider other factors that may affect the value of the goods, such as discounts, commissions, royalties, and other expenses related to the sale of the goods.
Procedures of Special Valuation Branch
The SVB follows a specific procedure when determining the value of imported goods. The process typically involves the following steps:
- Receipt of Information: The SVB first receives information about the imported goods, including the value declared by the importer and any other relevant information.
- Verification of Information: The SVB verifies the information provided by the importer by conducting an investigation into the transaction value of the goods.
- Assessment of Value: The SVB assesses the value of the imported goods based on the information provided and the investigation conducted.
- Notification of Assessment: The SVB notifies the importer of the assessed value of the goods and the customs duty payable.
- Review and Appeal: The importer has the right to review and appeal the assessment made by the SVB if they believe that the value assigned to the goods is incorrect.
Benefits of Special Valuation Branch
The SVB provides several benefits for both the customs department and the importer. Some of these benefits include:
- Accurate Valuation: The SVB ensures that the correct value is assigned to the imported goods, reducing the risk of under-valuation or mis-valuation.
- Fair Competition: Accurate valuation ensures that importers are not unfairly competing with local producers due to undervaluation of imported goods.
- Revenue Collection: Accurate valuation ensures that the customs department collects the correct amount of customs duty, contributing to the revenue of the country.
- Transparency: The SVB operates in a transparent manner, ensuring that importers have access to information about the valuation process and the opportunity to review and appeal decisions made by the SVB.
Conclusion
The Special Valuation Branch is an essential unit within the customs department of many countries. Its primary function is to ensure the correct valuation of goods imported into the country, which has a significant impact on customs duty and revenue collection. The SVB operates in a transparent manner, providing benefits for both the customs department and the importer. Understanding the role and procedures of the SVB is crucial for importers and businesses engaged in international trade. ASC provides the comprehensive services for the Special Valuation Branch of customs. ASC has team of professionals with years of experience on SVB in Customs.