A statement by Indian Finance Ministry on Wednesday said an investigation by India’s Directorate of Revenue Intelligence (DRI) has found that Chinese smartphone maker Oppo evaded customs duty worth 43.9 billion rupees ($551 million).
The statement by the Indian government claimed that investigators found evidence Oppo wrongfully used duty exemptions for items imported for use in mobile phone production.
The Chinese phone maker also made royalty payments which were not added to the transaction value of imported goods, as required by Indian law, the statement added.
The government further said that a notice “has been issued to Oppo India demanding (the) customs duty”.
The statement, without going into much details, also said the Revenue Intelligence wing has also proposed penalties on Oppo India, its employees and Oppo China.
After political tensions between India and China rose because of border clash in 2020, many Chinese firms have struggled to do business in India. The Indian government, citing security reasons, has more than 300 Chinese apps since, and toughened rules on Chinese investment.
The action against Oppo comes amid stringent scrutiny of of Chinese phone makers operating in India.
Earlier last week, the Enforcement Directorate (ED) carried out raids at multiple locations across the country linked directly and indirectly to Chinese mobile company Vivo. The ED had also raided Xiaomi under FEMA. It had seized Rs 5,551.27 crore of smartphone giant Xiaomi India under the provisions of the Foreign Exchange Management Act (FEMA), 1999.
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