Under Rule 2(2) of the Customs Valuation (Determination of Price of Imported Goods) Rules, 2007 (‘CVR, 2007’) every importer of goods, while filing a bill of entry, makes a declaration about whether the seller of imported goods is a related party or not. In cases, where any import transaction is between ‘related persons’, as defined under Rule 2 (2) of CVR 2007, such transactions are necessarily to be examined whether or not the relationship amongst the parties and circumstances surrounding the sale of the imported goods have influenced the import price. Accordingly, such transactions are required to be examined under SVB investigation.
The SVBs functioning at the Customs Houses are at Bengaluru, Chennai, Kolkata, Delhi and Mumbai, under supervisory control of jurisdictional Chief Commissioner, Principal Commissioner, Commissioner of Customs and Central Excise. The importer is free to select SVB of the Customs House of import or the Customs House most proximate to the corporate office.
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