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Samsung and LG are under investigation by Indian authorities over duties on imported parts used in the production of OLED TVs. According to Reuters sources, the dispute is whether a 5% or 15% rate should apply to the imported components.
Dispute over the customs duty rate
The case is being handled by India's Directorate of Revenue Intelligence. It's about so-called open cells, i.e., glass components used in the production of OLED panels. According to several sources cited by Reuters, Indian authorities believe Samsung and LG benefited from 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% customs duty. The companies, of course, 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 customs duty rate should apply.
Samsung cooperates with authorities
Indian officials reportedly visited Samsung's headquarters in Gurugram in recent weeks, where they met with company representatives. Samsung told Reuters it is reviewing the situation and cooperating with the relevant authorities. It also pledged to comply with applicable regulations.
LG, meanwhile, received questions regarding the import of OLED components and was to provide answers to Indian authorities. According to one source, the company also voluntarily paid an unspecified amount toward 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 additional customs duties or what that amount would be. The investigation is not concluded. The matter therefore mainly 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' TVs in Poland.
Source: Reuters
