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Chinese smartphone maker company Oppo evaded customs duty worth ₹4,389 crore

By Priyanka Verma 
Updated Date

New Delhi: The Directorate of Revenue Intelligence (DRI) has detected custom duty evasion of around Rs 4389 crore on mobile company Oppo India. During the investigation on Wednesday, the DRI carried out searches at the office premises of Oppo India and the residences of its key management staff.

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According to the report, Oppo India is engaged in the business of manufacturing, assembling, wholesale trading, distribution of mobile handsets and accessories in India, and has various brands of mobile phones, including Oppo, OnePlus and Realme.

During the investigation, incriminating material indicating intentional mis-declaration in the details of certain items imported by Oppo India for manufacturing of mobile phones were recovered. According to the information, as a result of this wrong declaration, Oppo India has wrongly availed ineligible duty exemption benefits amounting to ₹ 2,981 crore. Further, in questioning OPPO India’s senior management staff and domestic suppliers, they have admitted to furnishing incorrect details in their voluntary statements.

The investigation also revealed that Oppo India has made provisions for payment of ‘royalty’ and ‘license fee’ to various MNCs based in China in lieu of use of proprietary technology / brand / IPR licenses. Whereas the said ‘royalty’ and ‘license fee’ paid by Oppo India were not being added to the transaction value of the goods imported by them. Which has been described as a violation of Rule 10 of Section 14 of the Customs Act, 1962. On this basis, Oppo India has allegedly evaded charges of ₹1,408 crore.

After the completion of the investigation by the DRI, a show cause notice has been issued to Oppo India, demanding customs duty of Rs 4,389 crore. The said notice also proposes relevant penalties on Oppo India employees and Oppo China under the provisions of the Customs Act, 1962.

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