Govt aims to clear SVB backlog in two years with bulk entry processing

The revamped framework aims to reduce paperwork and resolve valuation issues without lengthy disputes

The government is planning to clear the backlog of Special Valuation Branch (SVB) cases within two years and upgrade customs systems to allow bulk finalisation of Bills of Entry- the documents filed to clear imported goods, a senior government official said.

 

This would provide a significant relief to companies whose imports from related group entities are scrutinised by the SVB to ensure fair valuation and prevent revenue loss, the official said.

 

According to sources, thousands of such cases are pending nationwide involving companies, such as Adani Enterprises, Ambuja Cements, GE Power Services India, and Asian Paints, among others. Emails sent to these companies and the finance ministry seeking comment on the matter remained unanswered till press time.

 

The official said the Centre plans to issue a detailed circular on the SVB overhaul by July. The revamped framework will adopt a more consultative approach, with customs engaging importers earlier in the process. It also aims to reduce paperwork and resolve valuation issues without lengthy disputes.

 

“While consultations are part of the current SVB process, they often take considerable time due to repeated document checks and prolonged correspondence. The reforms aim to simplify this by streamlining paperwork, introducing time limits, and using digital platforms for faster resolution,” he said. 

 

The changes align with the Union Budget 2025 proposal to complete provisional assessments within two years, a timeline that would apply to both pending and future SVB matters. As part of ongoing reforms, customs is upgrading its systems to help officers finalise many import shipments at once, instead of handling each shipment individually.

 

“Previously, customs officers had to finalise each Bill of Entry one by one because each shipment has separate records, values, and duty calculations. The new system upgrade will allow customs to process multiple Bills of Entry in bulk. Officers will be able to upload data for several shipments and finalise proceedings together. This will significantly reduce delays and save time for both customs and importers,” the official added.

 

Another senior official said the reforms will also tackle longstanding issues that persist despite the 2016 guidelines. These include the non-issuance of investigative reports to importers, lack of a mechanism to adjust Extra Duty Deposits (EDD) — security deposits collected during valuation investigations — against the final customs duty payable, and delays in procedural steps, such as issuing show cause notices, adjudication by the Common Adjudicating Authority, and closure of assessments.

 

Vimal Pruthi, partner, Customs and Indirect Tax at EY, said there is a strong need to modernise SVB procedures, given the significant backlog. He noted that in recent discussions with customs officials, industry stakeholders were informed about ongoing efforts to clear pending matters through simplified documentation and faster processes.

 

“Industry hopes that for future imports, a more trust-based system will be adopted, where importers can submit concise declarations and, unless the declared price is marked as provisional, transactions may move directly to final assessment without lengthy delays,” Pruthi added.