An investigation by India’s Directorate of Revenue Intelligence has found that Chinese smartphone maker Oppo evaded customs duty worth 43.9 billion rupees ($551 million), a government statement said on Wednesday. Also Read - OPPO, OnePlus stop smartphone sales in Germany: Here's why
Indian investigators found evidence that Oppo wrongfully used duty exemptions for items imported for use in mobile phone production, the statement said. Also Read - Oppo Reno 8 Pro review: Feast for the eyes but has strong competition
They also allege Oppo made royalty payments which were not added to the transaction value of imported goods, as required by Indian law, it added. Also Read - Oppo Reno 8Z launched with Snapdragon 695 SoC and 33W fast charging
A spokesperson for Oppo, which is owned by China’s BBK Electronics, did not immediately respond to a request for comment.
A notice “has been issued to Oppo India demanding (the) customs duty”, the government said.
The Revenue Intelligence wing has also proposed penalties on Oppo India, its employees and Oppo China, the government statement said, without elaborating.
Many Chinese firms have struggled to do business in India after political tension ramped up following a border clash in 2020. India has cited security concerns in banning more than 300 Chinese apps since, and toughened rules on Chinese investment.
Action against Oppo comes amid growing scrutiny of Chinese smartphone markers in recent weeks.
The federal financial crime agency, the Enforcement Directorate, last week raided 48 locations of Vivo and its related entities, alleging that sale proceeds of Vivo India were transferred out of India to show losses and avoid paying taxes. read more
India smartphone market leader Xiaomi too has been under investigation, with the agency alleging it made illegal remittances abroad “in the guise of royalty” payments.