The Directorate of Revenue Intelligence conducted searches at the office premises of Oppo India and residences of its key management employees, leading to the recovery of evidence indicating intended misdeclaration in the description of certain items imported by the company, which were meant for use in the manufacture of mobile phones.
The investigation also revealed that Oppo India had made provisions for payment of ‘Royalty’ and ‘Licence Fee’ to various multinational companies, including those based in China, in lieu of the use of proprietary technology/brand/IPR license, with an of Rs 1,408 crore.
During the questioning, employees in their voluntary statements accepted the submission of wrongful description before the customs authorities at the time of import. Those mis-declarations resulted in wrongful availment of ineligible duty exemption benefits by Oppo India amounting to Rs 2,981 crore.
After completion of the investigation, a show-cause notice has been issued to Oppo India demanding customs duty amounting to Rs 4,389 crore. The notice also proposes relevant penalties on Oppo India, its employees, and Oppo China, under the provisions of the Customs Act, 1962.
Oppo India is engaged in the business of manufacturing, assembling, wholesale trading, and distributing mobile handsets and accessories across India. Oppo India deals in various brands of mobile phones, including Oppo, OnePlus, and Realme.
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