Special Valuation Branch of the customs deals with cases involving related party transactions and follows a procedure as laid down in the circulars issued by CBEC from time to time. The procedure involves extensive investigation spread over a period of time and requires the importer to reply to a set of questionnaire and also maintain extensive documentation and furnish the information as and when required. After the investigation the customs may accept or reject the value. On rejection the value is re-determined based on the sequential methodology (identical/similar valuation, deductive valuation, computed valuation, residual valuation). At times such a redetermination may involve imposition of fine and penalty depending on the reasons of rejection of the value.
Special Valuation Branch process. on receipt of the reference from Appraising Groups, the case is registered in Special Valuation Branch and a PD Circular for provisional assessment is issued. Copies of the same are issued to the importer and to the appraising groups as well. The importer shall indicate the PD Circular Number at the time of provisional assessment of all their imports in the Appraising Group and execute PD Bond with 1% Extra Duty Deposit on the assessable value of the goods. Along with the PD Circular a questionnaire in “Annexure A” is also issued to be filled up by the importer along with the list of all documents required to be submitted. The amount of extra duty deposit at present kept at 1% will be continued. The Board has however decided that if the importer does not furnish complete reply to the questionnaire within 30 days of receipt of the 'Questionnaire' by the importer, the extra duty deposit will be increased to 5% till the date of receipt of reply by the Department. The importers falling under the related category may keep ready all the documents along with the replies to the questionnaire, etc., at the time of first import itself, so that the case can be finalized as early as possible in the Special Valuation Branch.
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