India claims Chinese company Oppo evaded $551 mln in import tax

National

According to a government announcement on Wednesday, the Directorate of Revenue Intelligence in India discovered that the Chinese smartphone manufacturer Oppo had avoided paying customs duties totaling $451 million.

According to the statement, Indian authorities discovered proof that Oppo had improperly taken advantage of tariff exemptions for goods imported for use in the manufacture of mobile phones.

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.

An 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 government statement made no more mention of the fines that the Revenue Intelligence branch had also suggested for Oppo India, its staff, and Oppo China.

After political tension increased in the wake of a border incident in 2020, several Chinese companies have found it difficult to conduct business in India. Since then, India has banned more than 300 Chinese applications and tightened regulations on Chinese investment, citing security concerns, Reuters reported.

Oppo is being targeted as Chinese smartphone manufacturers have recently come under increased scrutiny.