Samsung Electronics has appealed against a decision by the Indian authorities to impose tariffs and penalties amounting to approximately 800 billion KRW.
According to Reuters and other foreign media outlets on May 4 (local time), Samsung Electronics recently submitted documents to the Customs, Excise and Service Tax Appellate Tribunal in Mumbai, India, arguing that "the items in question were originally exempt from tariffs when imported by large companies in India," and objected to the tax authorities' decision.
The core issue revolves around a small wireless frequency circuit module known as a Remote Radio Head (RRH). This device, a key component of 5G base stations, performs some signal transmission and reception functions.
The Indian Customs Department classified this device as a transceiver, making it subject to tariffs, and imposed 44.6 billion rupees (approximately 740 billion KRW) in unpaid tariffs and penalties on products worth 784 million USD (about 1.1 trillion KRW) that Samsung Electronics imported from Korea and Vietnam between 2018 and 2021. In addition, seven executives of Samsung Electronics' Indian subsidiary were separately fined 81 million USD (114 billion KRW).
Samsung Electronics countered that the component in question does not qualify as a transceiver and should be classified as a tariff-exempt item. The company particularly emphasized the precedent set by Indian telecom operator Reliance Jio, which imported the same component tariff-free until 2017, arguing that this was a recognized "practice" by the authorities at the time. Samsung Electronics claimed that it subsequently took over the importation of the component, but the authorities abruptly changed their stance and decided to impose additional charges.
Samsung Electronics also raised concerns about procedural fairness, stating that "the customs authorities rushed to make a decision without providing sufficient opportunity for explanation."
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