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Samsung and LG are subject to an investigation by Indian authorities into tariffs on imported parts used in the production of OLED televisions. According to Reuters sources, the dispute concerns whether a 5 per cent or 15 per cent rate should apply to the imported components.
Dispute over the customs tariff
India's Directorate of Revenue Intelligence is conducting the investigation. It concerns the so-called 'open cells', the glass elements used in the manufacture of OLED panels. According to several sources cited by Reuters, Indian authorities believe Samsung and LG benefited from a preferential 5% tariff, which is supposed to apply to parts for older LCD and LED technologies. Officials say OLED components should be subject to a 15% tariff. The companies, unsurprisingly, disagree with that interpretation. According to Reuters, the tech giants argue that OLED is an evolution of LED technology, so in their view the same tariff should apply.
Samsung is cooperating with authorities
Indian officials reportedly visited Samsung's headquarters in Gurugram in recent weeks, where they spoke with company representatives. Samsung told Reuters that it is analysing the situation and is cooperating with the relevant authorities. It also committed to complying with applicable regulations.
LG, however, received questions regarding the import of OLED parts and was said to have provided responses to Indian authorities. According to one source, the company also voluntarily paid an unspecified sum towards any possible additional customs duties. LG did not reply to Reuters' questions about the proceedings.
At this stage it is not known whether companies will actually have to pay any customs duty or what that amount would be. The investigation is not concluded. The matter therefore concerns primarily the classification of OLED components and the costs of their import into India. There is currently no basis for linking these proceedings to the prices of those brands' televisions in Poland.
Source: Reuters
