GOI issues ₹653 crore import duty evasion notice to Xiaomi

Xiaomi has been slapped with a notice for alleged evasion of import duty.

Chinese smartphone company, Xiaomi has been struck with a Rs 653 crore import duty evasion notice by the Indian Government on the basis of the documents recovered during searches at its premises. As per the official statement released by government officials, the company is accused of evasion of import duty.

According to the Directorate of Revenue Intelligence (DRI), the amount of royalty was not included in the value of imported goods by Xiaomi India and its other manufacturing companies. Hence, violating the customs law. Furthermore, the ministry said that the company Xiaomi was evading the import duty by not adding ‘royalty and license fee’ to the transaction value.

According to the ministry, “After the completion of the DRI investigation, Xiaomi Technology India Pvt Ltd shall be directed to demand and recover the duty of Rs 653 crore for the period from 1st April 2017 to 30th June 2020 under the provisions of the Customs Act, 1962.”

Further in the investigation, it was found out that, Xiaomi India is also involved in the sales of MI Mobile phones and the components of the mobile phone are imported by the contract manufacturers in India and are further assembled in India for sales.

 

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