India Investigates Samsung and LG for OLED Tariff Evasion

The Directorate of Revenue Intelligence is investigating Samsung and LG Electronics for allegedly evading import tariffs on OLED TV display parts. Authorities claim the companies wrongly applied a 5% concessional tariff reserved for older LCD and LED technology, rather than the 15% duty required for OLED components.

Samsung is cooperating with the investigation following questioning at its Gurugram headquarters. LG Electronics has submitted written responses and a voluntary monetary deposit to cover potential additional duties. Simultaneously, Samsung is contesting a separate $520 million tax demand related to the misclassification of networking gear.

Industry groups, including the Consumer Electronics and Appliances Manufacturers Association and MAIT, have lobbied the IT ministry to extend the 5% tariff to OLED parts. These organizations argue that the current tariff disparity increases input costs and contradicts the goals of the Make in India initiative.