The Directorate of Revenue Intelligence in India discovered that the Chinese smartphone manufacturer Oppo had avoided paying customs duties totaling $451 million.
According to the statement, Indian authorities discovered proof that Oppo had improperly taken advantage of tariff exemptions for goods imported for use in the manufacture of mobile phones.
Additionally, it noted, they claim Oppo paid royalties that were not included to the transaction value of imported items as required by Indian law.
According to the authorities, a notification “has been issued to Oppo India demanding (the) customs duty.”
The business was analyzing the notification, according to a spokeswoman for Oppo, which is controlled by China’s BBK Electronics, and would reply.
The Oppo representative issued a statement that read, “We have a different opinion on the claims. “We think it’s a problem that the whole industry is working on,”
“We are going to reply the notification, giving our side, and will be working further with the associated government ministries,” the spokeswoman said.
The government statement made no more mention of the fines that the Revenue Intelligence wing had also suggested for Oppo India, its staff, and Oppo China.
After political tension increased in the wake of a border incident in 2020, several Chinese businesses have found it difficult to conduct business in India. Since then, India has banned more than 300 Chinese apps and tightened regulations on Chinese investment, citing security concerns.
Action against Oppo comes as Chinese smartphone manufacturers are under increased scrutiny.
According to allegations that sale revenues from Vivo India were transferred outside of India in order to display losses and avoid paying taxes, the federal financial crime agency, the Enforcement Directorate, searched 48 locations of Vivo and its connected organizations last week.
Xiaomi, the market leader in smartphones in India, is also under investigation because, according to the agency, it sent money outside illegally “under the pretense of royalties.”
Each business disputes any wrongdoing.