New Delhi: Directorate of Revenue Intelligence (DRI) has detected customs duty evasion of around Rs 4,389 crore by Oppo India, which is engaged in the business of manufacturing, assembling, wholesale trading, distribution of mobile handsets and accessories thereof, across India. Oppo India deals in various brands of mobile phones, including Oppo, OnePlus and Realme.
In a statement, the Finance Ministry said that during an investigation pertaining to Oppo Mobiles India Private Limited, a subsidiary company of Guangdong Oppo Mobile Telecommunications Corporation Ltd, DRI detected customs duty evasion of around Rs 4,389 crore.
During the course of investigation, searches were conducted by DRI at the office premises of Oppo India and residences of its key management employees, which led to the recovery of incriminating evidence indicating wilful mis-declaration in the description of certain items imported by Oppo India for use in the manufacture of mobile phones, said the Ministry.
This mis-declaration resulted in wrongful availment of ineligible duty exemption benefits by Oppo India amounting to Rs 2,981 crore. Among others, senior management employees and domestic suppliers of Oppo India were questioned, who in their voluntary statements accepted the submission of wrongful description before the customs authorities at the time of import.
Investigation also revealed that Oppo India had remitted or made provisions for payment of ‘royalty’ and ‘licence fee’ to various multinational companies including those based in China, in lieu of use of proprietary technology, brand and IPR license, etc. A sum of Rs 450 crore has been voluntarily deposited by Oppo India, as partial differential customs duty short paid by them, said the Ministry.
After completion of the investigation, a show cause notice has been issued to Oppo India demanding customs duty amounting to Rs 4,389 crore. The said notice also proposes relevant penalties on Oppo India, its employees and Oppo China, under the provisions of the Customs Act, 1962, said the Ministry. /BI/
