The Directorate of Revenue Intelligence (DRI) has discovered approximately Rs 4,389 crores in customs duty evasion while conducting an investigation into M/s Oppo Mobiles India Private Limited, a subsidiary of “Guangdong Oppo Mobile Telecommunications Corporation Ltd,” China (hereinafter referred to as “Oppo China”).
In India, Oppo India manufactures, assembles, wholesale trades, and distributes mobile devices and their related accessories. Oppo India offers a variety of mobile phone brands, such as Oppo, OnePlus, and Realme.

In the course of the investigation, DRI searched Oppo India’s office space and the homes of some of its key management personnel. This resulted in the discovery of evidence that showed willful misrepresentation in the description of some items imported by Oppo India for use in the production of mobile phones. Oppo India erroneously claimed ineligible duty exemption benefits totalling Rs 2,981 crores as a result of this misdeclaration.

Senior management staff and domestic suppliers of Oppo India were among those questioned; in their own responses, they acknowledged having submitted a false description to the Customs Authorities at the time of import.

Investigations further showed that Oppo India had made arrangements for the payment of “Royalty” and “Licence Fee” to a number of international corporations, including those with offices in China, in lieu of using their exclusive technology, brand, or intellectual property, among other things.

In breach of Section 14 of the Customs Act of 1962 read with Rule 10 of the Customs Valuation (Determination of Value of Imported Goods) Rules 2007, the aforementioned “Royalty” and “Licence Fees” paid by Oppo India were not included in the transaction value of the goods they imported. M/s Oppo India is accused of evading taxes on this account to the tune of Rs. 1,408 crores.

Oppo India has voluntarily contributed Rs. 450 crores as partial differential Customs duty short paid by them.

Following the investigation, Oppo India was served with a Show Cause Notice requesting payment of Rs. 4,389 crores in customs duty. The aforementioned Notice also suggests appropriate penalties for Oppo China, its employees, and Oppo India.

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