LG and Samsung facing tariff evasion probe in India
What's the story
India is investigating South Korean electronics giants LG Electronics and Samsung for allegedly paying lower tariffs on imported display parts for high-end televisions, as per Reuters. The Directorate of Revenue Intelligence (DRI) claims that the companies wrongly claimed a concessional 5% tariff on OLED glass screens, or open cells. This rate is usually reserved for older LCD and LED technologies.
Tariff dispute
Financial details of alleged underpayment
The DRI believes that Samsung and LG should have paid a 15% duty on OLED parts.
However, both companies argue that OLED is an advanced form of LED technology and should be subject to the same tariffs as LEDs.
The financial details of the alleged underpayment remain undisclosed.
After investigations, authorities can issue tax demand notices and impose penalties up to 100% of the evaded duty, which companies can legally contest in court.
Corporate cooperation
Samsung and LG's response to the investigation
Samsung has confirmed that it is "reviewing the matter and cooperating fully with the relevant authorities."
Meanwhile, LG has responded to the Indian authorities with answers to written questions on its OLED imports.
The company has also submitted a voluntary monetary deposit for any additional duties that may be required.
Tariff advocacy
Industry groups are lobbying India's IT ministry
Industry groups are lobbying India's IT ministry to recommend lower tariffs for OLED display parts.
They argue that the current tariff law only benefits LCD and LED display parts, creating an "anomalous situation."
This exclusion results in higher input costs and reduced competitiveness for manufacturers of the advanced OLED TVs.
Import dependence
Imports of displays have risen by 15% in a year
India's imports of displays, including TV parts, have risen 15% in a year to $5.6 billion by March 2026.
This highlights the country's heavy reliance on overseas supplies for such components.
The industry is also seeking more exemptions on OLED display manufacturing overall, arguing that just old LCD technology manufacturing machines enjoy duty exemptions.