1 hr ago
India Investigates Samsung and LG Over OLED TV Tariffs
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.
India is investigating Samsung and LG over allegedly underpaid tariffs on imported OLED display parts.
Authorities say OLED open cells should face a 15% duty, rather than the 5% rate used for LCD and LED parts.
Samsung and LG argue OLED is an advanced form of LED technology and should receive the concessional tariff.
Indian revenue officials questioned Samsung personnel, while LG submitted responses and made an unspecified voluntary deposit.
Industry groups are lobbying for OLED parts and manufacturing equipment to receive broader duty exemptions.
- Who
- India's Directorate of Revenue Intelligence is investigating Samsung and LG Electronics; industry groups are also lobbying over the tariff rules.
- What
- The investigation concerns whether imported OLED glass screens, or open cells, were incorrectly charged a 5% tariff instead of 15%.
- Where
- India, including Samsung's headquarters in Gurugram near New Delhi.
- When
- The investigation was active in recent weeks; industry groups launched their lobbying campaign in August.
- Why
- Authorities believe the 5% concession applies only to LCD and LED parts, while the companies and industry groups argue OLED should receive comparable treatment.
Indian Authorities and Industry Rules
Samsung, LG, and Industry Groups
Correct tariff classification
Indian Authorities and Industry Rules
Indian revenue officials say OLED open cells fall outside the concessional 5% regime reserved for LCD and LED display parts and should face a 15% duty.
Samsung, LG, and Industry Groups
Samsung and LG argue OLED is an advanced form of LED technology and should qualify for the same tariff treatment.
Impact of current rules
Indian Authorities and Industry Rules
Authorities maintain that they are enforcing existing tariff law, which they interpret as distinguishing OLED parts from LCD and LED parts.
Samsung, LG, and Industry Groups
Industry groups say the distinction creates higher input and capital costs, reduces competitiveness, and conflicts with India's effort to expand domestic manufacturing.
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








