New Delhi: Revenue intelligence officials have detected duty evasion of Rs 4,389 crore by Chinese smartphone maker Oppo by falsely declaring imports, the Finance Ministry said on Wednesday. The Chinese company deals in mobile brands – Oppo, OnePlus and Reality.
During the investigation of Oppo Mobiles India Private Limited, a subsidiary of Guangdong Oppo Mobile Telecommunications Corporation Limited – China (Oppo China), Directorate of Revenue Intelligence (DRI) has detected customs evasion of around Rs 4,389 crore. Oppo India is engaged in the business of manufacturing, assembling, wholesale trading, distribution of mobile handsets and accessories across India. It works on mobile phones from various brands including Oppo, OnePlus and Realme.
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During the investigation, searches were conducted at the office premises of Oppo India and the residences of its key management staff by DRI, which led to the recovery of incriminating evidence which purports to deliberately mis-declaration in the details of certain items imported for use by Oppo India. indicates. Mobile phone manufacturing. “This incorrect declaration resulted in wrongful availing of ineligible duty exemption benefit of Rs 2,981 crore by Oppo India.
Among others, OPPO India’s senior management staff 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 ministry said. The investigation also revealed that Oppo India had made provisions for payment of ‘royalty’ and ‘license fee’ to various MNCs based in China in return for use of proprietary technology/brand/IPR licenses etc.
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The said ‘royalty’ and ‘license fee’ paid by Oppo India were not being added to the transaction value of goods imported by them, in violation of the provisions of the Customs Act. The alleged duty evasion by Oppo India on this account is Rs 1,408 crore. An amount of Rs 450 crore has been voluntarily deposited by Oppo India as part of differential customs duty paid by them.
“After the completion of the investigation, a show cause notice has been issued to Oppo India seeking customs duty of Rs 4,389 crore. The notice seeks to impose relevant penalties on Oppo India, its employees and Oppo China under the provisions of the Customs Act. also proposed, 1962,” the ministry said. The show cause notice was issued on 8 July.
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