SVB Custom: Reviewing Import Valuation When Supplier Incentives Change
Introduction For Indian importers, a change in supplier pricing can affect more than the purchase invoice. Volume rebates, year-end incentives, special discounts, revised payment terms, and royalty arrangements may influence the declared value of imported goods and the customs compliance process. When an importer and its overseas supplier are related, these changes can receive additional scrutiny under India's customs valuation framework. SVB Custom refers to matters handled by the Special Valuation Branch, a specialised customs unit that examines certain import transactions involving related parties or other valuation concerns. Businesses importing goods from overseas parent companies, subsidiaries, or associated enterprises should pay particular attention to changes in commercial arrangements. Reviewing supplier incentives promptly helps importers maintain consistent records, explain pricing decisions, and determine whether their declared customs values require further assessmen...