LG Electronics Investigated by DRI Over Alleged Customs Duty Evasion in India
What happened
LG Electronics India Ltd received a show cause notice from Customs regarding the recovery of Rs 153.58 crore in customs duty. This notice follows an investigation by the Directorate of Revenue Intelligence (DRI) into the alleged non-inclusion of royalty payments in the assessable value of certain imported goods. The company stated it is also facing scrutiny alongside Samsung regarding the appropriate concessional customs duty rate for imported OLED glass screens. LG Electronics has since responded to the written questions and voluntarily deposited the difference in customs duty as estimated by officials.
From prokerala.com
Why it matters
The DRI views that both LG Electronics and Samsung should have paid 15 percent customs duty on OLED parts. The investigation centers on the alleged failure to apply the correct duty rates for OLED components versus the older LCD and LED products.
From prokerala.com
Who's involved
- LG ElectronicsSouth Korean multinational electronics company under investigation
- Directorate of Revenue IntelligencePremier Intelligence Agency of Indian Customs conducting the inquiry
- Government of IndiaLegislative, executive and judiciary authority of India whose regulations are being enforced
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The entities involved
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LG Electronics
South Korean multinational electronics company
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Directorate of Revenue Intelligence
Premier Intelligence Agency of Indian Customs, Government of India
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