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India Investigates Samsung and LG Over OLED TV Tariffs

India Investigates Samsung and LG Over OLED TV Tariffs
LG, Samsung Face India Tariff Evasion Investigation Over OLED Tv Parts · deccanchronicle.com

India is checking whether Samsung and LG paid the correct tax on parts for OLED televisions.

The parts are glass screens called open cells.

Indian officials say these parts should have a 15% import duty.

The companies reportedly claimed a lower 5% duty used for older LCD and LED technologies.

Samsung and LG argue that OLED is an advanced type of LED technology.

Samsung says it is reviewing the matter and cooperating with authorities.

LG has answered questions and made a voluntary deposit for possible additional duty.

Industry groups want the government to give OLED parts the same lower-duty treatment as older display technologies.

Key facts

Companies investigated
Samsung and LG Electronics
Component involved
Imported OLED glass screens, also called open cells
Tariff claimed by companies
5% concessional duty
Tariff sought by authorities
15% import duty
Possible penalty
Authorities may impose penalties of up to 100% of the allegedly evaded duty
LG India TV share
About 26% overall and nearly 59% of OLED sales by value, according to figures cited in the report
Samsung example
A Made in India 65-inch OLED television was listed at $2,415

Quotes

Consumer Electronics and Appliances Manufacturers Association and MAIT

Industry groups lobbying for concessional tariffs on OLED display parts

“This absence of parity results in higher capital costs for setting up OLED manufacturing. This also hampers growth of manufacture of higher technologies in India and is thus against ‘Make in India'.”
deccanchronicle.com
“Manufacturers of more advanced OLED TVs are denied the same benefit, resulting in higher input costs and reduced competitiveness.”
deccanchronicle.com

Samsung

South Korean electronics company under investigation by Indian authorities

“reviewing the matter and cooperating fully with the relevant authorities, adding it is firmly committed to complying with all laws.”
deccanchronicle.com

Sources

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