Oppo India May Have Dodged Rs 4389 Crore Worth of Custom Duty

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  • Aug 01,2022
  • 2 min read
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According to a recent probe by India's Directorate of Revenue Intelligence (DRI), Oppo India skipped paying custom duty of Rs 4,389 crore. This follows previous probes into Chinese businesses such as Vivo and Xiaomi. Here are the specifics.

Oppo Wrongfully Avoided Custom Duty?

According to the DRI, Oppo purposefully misrepresented certain imported materials that were intended to be used in the production of Oppo phones. It is also claimed that throughout the investigation, Oppo India personnel and domestic suppliers confirmed that they provided the Customs Authorities with the incorrect description of the imported materials.

Oppo handles the production, assembly, wholesale selling, and distribution of mobile phones and accessories, as do OnePlus and Realme.

"During the course of the investigation, DRI conducted searches at Oppo India's office premises and residences of its key management employees, which led to the recovery of incriminating evidence indicating wilful misdeclaration in the description of certain items imported by Oppo India for use in the manufacture of mobile phones," DRI says in a statement. Oppo India erroneously claimed ineligible duty exemption benefits totaling Rs 2,981 crore as a result of this misstatement."

The probe also revealed that Oppo India paid numerous multinational firms 'Royalty' and 'Licence Fee' totaling Rs 1408 crore. Section 14 of the Customs Act of 1962 was violated since this sum was not included to the transaction value of the imported items.

Oppo told TechCrunch, "We believe it's an industry-wide issue that many corporates are working on." OPPO India is studying the SCN received from DRI, and we will respond to the notice, presenting our case, and will continue to cooperate with the relevant government departments. OPPO India is a responsible corporation that adheres to a strict corporate governance system. OPPO India will take whatever steps are necessary in this regard, including any legal proceedings."

We must wait for a proper resolution to this. We will keep you updated on the situation. So, stay tuned, and please share your ideas in the comments section below.

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