Oppo raided in India for customs duty avoidance

Oppo raided in India for customs duty avoidance

Oppo was found to have evaded in total INR43.8 billion (US$550m) in customs duty by the Indian government, the smartphone maker is the latest Chinese company to face intense scrutiny and raids in India.

In a statement, the Directorate of Revenue Intelligence (DRI) said its investigation included raids on Oppo India premises and residences of key management and employees.

The searches recovered “incriminating evidence” and “wilful mis-declaration” of parts imported to manufacture smartphones, which saved the company INR29.8 billion.

Staff “accepted the submission of wrongful description” to India’s customs authority at the time of importing the gear.

The DRI also found the company made royalty and licence fee payments to various multinational firms, including those based in China. This was a violation of the customs act as the payments were not added to the transaction value of imported goods, resulting in Oppo avoiding paying INR14 billion.

Oppo paid INR4.5 billion “as partial differential Customs duty short paid by them.” The DRI issued a show of cause notice to Oppo’s Indian unit to demand the INR43.8 billion in customs duty and to push further penalties on the company.

Oppo said in a statement to Developing Telecoms: "OPPO India is reviewing the notice from Directorate of Revenue Intelligence (DRI) office, and we are going to reply to the notice and present our side. OPPO is a responsible corporate organisation and believes in prudent corporate governance framework. OPPO India will take appropriate steps as may be needed in this regard including any remedies provided under the law.

Fellow Chinese smartphone maker Vivo was also recently hit with raids in India, with the Chinese government warning its confidence in investing in the country was waning

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