LG, Samsung face India OLED tariff evasion probe

India is probing LG Electronics and Samsung for allegedly paying lower tariffs on imported OLED display components for high-end televisions, according to five sources cited by Reuters. This investigation, which targets the premium electronics produced by the South Korean companies, highlights the contentious issue of tariff evasion by foreign investors in India.

The Directorate of Revenue Intelligence (DRI) suspects that both LG and Samsung should have paid a 15% duty on OLED glass screens, rather than the 5% concession currently granted to LCD and LED parts. The companies deny these allegations, arguing that OLED technology is simply an advanced form of LED technology and should be subject to the same Indian tariffs.

Indian officials have not commented on the potential financial impact of the alleged underpayment, but legal challenges and court battles could ensue if the companies contest the DRI's findings. The government has been criticized for its handling of the situation, with industry groups lobbying for more exemptions on OLED display manufacturing, claiming that the current system creates an unfair advantage for older LCD technology manufacturers.