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Samsung and LG are under investigation by Indian authorities over tariffs on imported parts used in the manufacture of OLED TVs. According to Reuters sources, the dispute concerns whether a 5% or 15% rate should apply to the imported components.
Dispute over the tariff rate
The proceedings are being conducted by India's Directorate of Revenue Intelligence. It's about so-called open cells, glass components used in the manufacture of OLED panels. According to several sources cited by Reuters, Indian authorities believe that Samsung and LG used a preferential 5% rate, which is supposed to apply to parts for older LCD and LED technologies. Officials say OLED components should be subject to a 15% duty. The companies, of course, disagree with that interpretation. According to Reuters, the tech giants say OLED is an evolution of LED technology, so in their view the same tariff rate should apply.
Samsung cooperates with authorities
Indian officials reportedly visited Samsung's headquarters in Gurugram in recent weeks, where they spoke with company representatives. Samsung told Reuters it is analysing the situation and is cooperating with the relevant authorities. It also pledged to comply with applicable regulations.
LG, however, received questions regarding the import of OLED parts and was to provide answers to the Indian authorities. According to one source, the company also voluntarily paid an unspecified amount towards any potential additional customs duties. LG did not respond to Reuters' questions about the proceedings.
At this stage it is not known whether companies will actually have to pay customs duty or how much that would be. The investigation is not yet concluded. The matter therefore primarily concerns the classification of OLED components and the costs of importing them into India. There is currently no basis to link this proceeding to the prices of those brands' televisions in Poland.
Source: Reuters
