SIIB Matters (Special Investigation and Intelligence Branch)

SIIB is a specialized branch within Indian Customs whose primary purpose is to investigate all types of violations of the Customs Act, 1962. Violations include duty evasion, misdeclaration and failure to comply with the Customs Act, 1962.

When an importer/exporter receives a notice from the SIIB, it could jeopardize their business operation, cause a delay in shipment and result in potential monetary penalties. Generally, investigations conducted by the SIIB will be time-consuming, require thorough documentation and an accurate response to Customs Authorities.

Since Afleo has experience in both Customs and DGFT, we can assist you in navigating through SIIB investigations. Whether it is providing you with sample responses for replies, assisting in gathering documentation, or coordinating with Customs officials on your behalf, Afleo will provide you with professional representation and help resolve your issue as quickly as possible.

What is SIIB and Why It Matters

As an intelligence and enforcement unit of customs, the Special Investigation and Intelligence Branch (SIIB), is responsible for conducting investigations into customs cases, including those involving, undervalued, overvalued, misdeclared merchandise or violations regarding the abuse of the use of government incentive programs for exports, such as Export Promotion Capital Goods (EPCG) Scheme, Advance Authorization Scheme and Duty Free Import Authorization (DFIA).

In addition, the SIIB seeks to ensure that both importers and exporters comply with the rules and regulations of international trade and do not improperly take advantage of government incentives.

Two key divisions of SIIB are:

• The SIIB (Import Division) focuses primarily on investigating cases of undervalued imports, misdeclared merchandise, and irregularities in the documentation and licensing of imports.
• The SIIB (Export Division) investigates cases of overvalued exports, misdeclared product information or abuses of the use of export incentives.

Many industries have been investigated by the SIIB for their high-value transactions (i.e., pharmaceuticals, chemicals, engineering, textiles and electronics).

Common Triggers for SIIB Investigation

The SIIB investigation is typically based on an intelligence alert, discrepancy from data collected during the filing process (i.e., discrepancies with declared vs. actual values/quantities/descriptions), or the SIIB system flags a “red flag” as a result of its automated review of information provided by the importer/exporter. Some of the most common SIIB investigation initiation factors include:

• Discrepancies between the values/quantities/descriptions of goods declared and those actually shipped.
• Excess valuation of goods being exported in order to claim additional export incentive benefits such as RoDTEP, MEIS or Advance Authorization.
• Misuse of an EPCG license to make duty-free imports using a DFIA license.
• Incorrect or inconsistent Harmonized System (HS) Code classification(s).
• Unusual patterns of trade (or multiple changes made to the documents related to shipping) that trigger an alert.
• Prior investigation findings by Customs/DGFT, either against the same party or against parties connected to the subject of this investigation.

Note: Even legitimate exporters may have to respond to an SIIB inquiry due to an automatically generated alert or simply because there was some clerical error when the exporter filed their Customs declaration. Thus, it is critical that exporters employ experienced counsel who promptly address the inquiry so as to mitigate potential negative consequences.