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DRI searches Samsung’s offices over suspected duty evasion
Asked about the amount of duty evasion, period, and countries from where products have been brought in, an official refused to comment as the inquiry is at a very initial stage
The Directorate of Revenue Intelligence (DRI) on Wednesday searched the offices of Samsung in Gurugram and Mumbai in connection with suspected duty evasion on the import of network equipment, people familiar with the matter said on Friday. The agency has sought some clarifications from Samsung officials on the imports and checked the invoices as part of a “formal probe”, they added.
An official aware of the matter said, “Officials sought clarifications from the company as some discrepancies were noticed in import-related paperwork, which is being ascertained.” Asked about the amount of duty evasion, period, and countries from where products have been brought in, the official added: “This inquiry is at a very initial stage so nothing can be said as of now.”
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Samsung declined to comment on the searches. The South Korean electronics major enjoys zero duty on the import of telecom products manufactured in its home base and Vietnam under a Free Trade Agreement (FTA) unlike companies such as Ericsson, Nokia, Huawei, and ZTA, which pay 20% tariffs. India has signed a memorandum of understanding with South Korea to develop, modernise and expand telecom services and next-gen wireless networks. India was South Korea’s 21st biggest source for imports and 7th biggest export market as of 2020. Samsung’s Noida facility is the world’s largest mobile manufacturing unit.
The DRI officials cited above said the agency wants to verify whether the equipment being imported in India is being manufactured in a non-FTA country.
