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import from parent company

Aman Jain (Company Secretary in Practice) (165 Points)

16 February 2010

Pls see if you can give any opinion. We have a mother Company in Europe and wants to import the goods from the mother company, whose is holding majority of the shares of the Company and it will be providing the Indian company with some special discount for a year or so. The value of goods in next one year will not exceed E5000.00. The question is that whether we should register our Company with SVB (spl. Valuation Branch) or not. What could be the way forward for Indian company to import goods.

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4 Replies

RAMESH KUMAR VERMA ( CS PURSUING ) (43853 Points)
Replied 17 February 2010

MR JAiN,

THERE IS THE RULE ABOUT THIS MATTER:-

IMPORTERS WHO ARE RELATED TO THE SUPPLIER IN TERMS OF RULE 2(2) OF THE CUSTOMS VALUATION RULES, 1988 ARE REQUIRED TO REGISTER WITH SVB. RULE 2(2) OF THE CUSTOMS VALUATION RULES, 1988 IS AS FOLLOWS:-

RULE 2(2): FOR THE PURPOSE OF THESE RULES, PERSONS SHALL BE DEEMED TO BE "RELATED" ONLY IF:-

I)	THEY ARE OFFICERS OR DIRECTORS OF ONE ANOTHER'S BUSINESSES.
II)	THEY ARE LEGALLY RECOGNISED PARTNERS IN BUSINESS;
III)	THEY ARE EMPLOYER AND EMPLOYEE;
IV)	ANY PERSON DIRECTLY OR INDIRECTLY OWNS, CONTROLS OR HOLDS 5 PER CENT OR MORE OF THE OUTSTANDING VOTING STOCK OR SHARES OF BOTH OF THEM;
V)	ONE OF THEM DIRECTLY OR INDIRECTLY CONTROLS THE OTHER;
VI)	BOTH OF THEM ARE DIRECTLY OR INDIRECTLY CONTROLLED BY A THIRD PERSON;
VII)	TOGETHER THEY DIRECTLY OR INDIRECTLY CONTROL A THIRD PERSON;
VIII)	THEY ARE MEMBERS OF THE SAME FAMILY.

Hope, that point II, conditions occurs on you. I opinion that you must registered in SVB OTHERWISE HIRE A CUSTOM HOUSE AGENT REGARDING THE CAPTION SUBJECT.

Ramesh.arti @ yahoo.co.in

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RAMESH KUMAR VERMA ( CS PURSUING ) (43853 Points)
Replied 17 February 2010

MR JAiN,

THERE IS THE RULE ABOUT THIS MATTER:-

RULE 2(2): FOR THE PURPOSE OF THESE RULES, PERSONS SHALL BE DEEMED TO BE "RELATED" ONLY IF:-

I)	THEY ARE OFFICERS OR DIRECTORS OF ONE ANOTHER'S BUSINESSES.
II)	THEY ARE LEGALLY RECOGNISED PARTNERS IN BUSINESS;
III)	THEY ARE EMPLOYER AND EMPLOYEE;
IV)	ANY PERSON DIRECTLY OR INDIRECTLY OWNS, CONTROLS OR HOLDS 5 PER CENT OR MORE OF THE OUTSTANDING VOTING STOCK OR SHARES OF BOTH OF THEM;
V)	ONE OF THEM DIRECTLY OR INDIRECTLY CONTROLS THE OTHER;
VI)	BOTH OF THEM ARE DIRECTLY OR INDIRECTLY CONTROLLED BY A THIRD PERSON;
VII)	TOGETHER THEY DIRECTLY OR INDIRECTLY CONTROL A THIRD PERSON;
VIII)	THEY ARE MEMBERS OF THE SAME FAMILY.

Hope, that point II, conditions occurs on you. I opinion that you must registered in SVB OTHERWISE HIRE A CUSTOM HOUSE AGENT REGARDING THE CAPTION SUBJECT.

Ramesh.arti @ yahoo.co.in

Aman Jain (Company Secretary in Practice) (165 Points)
Replied 18 February 2010

Dear Ramesh,

Thank you very much!!!

But i find somewhere that direct application from importer for SVB registration will not considered. Registration required when Appraising Board referred.

I am attaching a file. plz check. if you find any contrary thing then plz let us know.

Thanks & Regards

Aman Jain

Attached File : 3 special valuation branch svb .pdf downloaded: 309 times