Earlier searches by DRI yielded ‘incriminating’ evidence, indicating an alleged intentional mis-declaration in the details of certain items imported by Oppo India for use in manufacturing mobile phones.
Earlier searches by DRI yielded ‘incriminating’ evidence, indicating an alleged intentional mis-declaration in the details of certain items imported by Oppo India for use in manufacturing mobile phones.
The Directorate of Revenue Intelligence (DRI) has issued a show-cause notice on Oppo India seeking customs duty of Rs 4,389 crore. The notice also proposes to penalize the company, its employees and Oppo China under the provisions of the Customs Act.
Oppo Mobiles India Private Limited is a subsidiary of China-based Guangdong Oppo Mobile Telecommunications Corporation Limited. It is engaged in the business of manufacturing, assembling, wholesaling, distribution of Mobile Handsets and Accessories across the country. The company deals in mobile phones from various brands including Oppo, OnePlus and Realme.
DRI had earlier conducted searches at OPPO India’s office premises and residences of its key management staff, which led to the seizure of “defamatory” evidence indicating an alleged willful mis-declaration in the description of certain items imported for use by the company. Had gone. Mobile phone manufacturing.
“This incorrect declaration resulted in incorrect availing of ineligible duty exemption benefits amounting to ₹ 2,981 crore by Oppo India. Among others, the senior management staff of Oppo India and domestic suppliers were questioned, who in their voluntary statements admitted to furnishing false details before the customs authorities at the time of import,” the agency said.
The DRI investigation revealed that Oppo India had allegedly made provisions for payment of “royalty” and “license fee” to various multinational companies based in China in exchange for the use of proprietary technology, brands, intellectual property licenses. e.t.c.
“The said ‘royalty’ and ‘license fee’ paid by Oppo India were not being added to the transaction value of the goods imported by them, in contravention of section 14 of the Customs Act, under Customs Assessment (Assessment). Read with Rule 10. of Value of Imported Goods) Rules 2007. The alleged duty evasion by Oppo India on this account is ₹1,408 crore,” the agency said.
Oppo India has voluntarily deposited an amount of ₹450 crore as part differential customs duty short paid by them.