MeitY criticizes revenue dept's decision to impose customs duties on phone display parts

Government and industry leaders claim that the apparent disparities in perspectives between the two departments are pertinent to the duty evasion notices that the Directorate of Revenue Intelligence (DRI) has issued to Chinese smartphone giants Oppo and Vivo.

A letter from the ministry of electronics and information technology (MeitY) to the department of revenue in March this year, brought attention to potential discrepancies regarding the legality of customs duty assessments on the touch panel or cover glass, a crucial portion of mobile phones.

Government and industry leaders claim that the apparent disparities in perspectives between the two departments are pertinent to the duty evasion notices that the Directorate of Revenue Intelligence (DRI) has issued to Chinese smartphone giants Oppo and Vivo.

On July 13, the DRI send Oppo a notice requesting Rs. 4,389 crore in customs duties, citing incorrect mis-declaration of imported goods. According to a Vivo spokesperson, the company also received a notice of this nature.

The smartphone industry anticipates similar letters for other businesses. It issued a warning that the problem would damage the industry for upto Rs 20,000 crore and harm India's reputation.

An industry group that represents Indian smartphone manufacturers wrote to the revenue department, the Prime Minister's Office, and the IT ministry in June in response to the MeitY letter, calling the duty requirements "preposterous."

The business is examining the warning, will work with law enforcement, and "follow the process of law as required," said the spokesperson for Vivo.

If the problem is not fixed right away, the effect would not be limited to Chinese companies and might hinder India's plans to become a centre for the manufacture of electronics, according to industry leaders. Officials from the revenue department acknowledged receiving the letter and promised to look into the industry's complaints.

In a media statement, Oppo stated that it disagreed with the allegations and that it was a problem being faced by the entire business community. The corporation announced that it would take the necessary actions, including legal recourse.