Category Archives: SVB Refund

What is the meaning of SVB/EDD refund?

It is not right to say that EDD is a custom duty. Even it is not levied due to Customs (Provisional Duty Assessment) Regulation, 1963. We may call it a security deposit charged as per Para 9 of the Board`s Circular No. 11/2001-Cus., dated 23-2-2001. Currently it is charged at 1% on assessable value. But 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. 

It is levied mainly if custom department thinks that assessable value shown by importer is not right and there may be some revenue loss to government. It is not imposed on every importer. For e.g. in case where subsidiary company imports from its Holding Company, custom may think that assessable value shown by subsidiary is less than actual value, they may levied EDD on import by subsidiary.

It is refunded if importer prove assessable value is genuine. He has to take SVB order and claim refund from customs.