Indian Government Imposes 900 Billion Won Fine on Samsung Electronics for 'Tariff Evasion Allegations'

Samsung Electronics Claims "Duty-Free Item,"
Considers Legal Action

Samsung Electronics has reportedly been ordered by the Indian government to pay approximately 900 billion won in back taxes and fines for alleged tariff evasion.

According to Reuters on the 25th, Indian tax authorities stated that Samsung Electronics misclassified imported goods to evade tariffs of 10% or 20% when importing major telecommunications equipment.

The item in question is a small radio frequency circuit module called a "Remote Radio Head," a key component that transmits signals at 4G mobile communication base stations.

Indian authorities believe that Samsung Electronics did not pay tariffs while importing $784 million (approximately 1.1513 trillion won) worth of these parts from Korea and Vietnam between 2018 and 2021.

Samsung Electronics submitted appraisal results from four experts, stating, "This part does not perform transceiver functions and is therefore a duty-free item."

However, the Indian government argued that in a letter Samsung Electronics submitted to the government in 2020, this part was defined as a "transceiver," making it a "tariff-applicable item."

Indian authorities imposed a total of 44.6 billion rupees (approximately 763.6 billion won) in unpaid tariffs and fines on Samsung Electronics. In connection with this case, fines totaling $81 million (approximately 118.9 billion won) were imposed on executives of Samsung Electronics India.

In response, Samsung Electronics stated, "This matter concerns the customs classification interpretation issue," and added, "We are complying with Indian law and are reviewing legal measures."