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Oppo India Says Reviewing Rs. 4,389 Crore Notice, Will Take Appropriate Steps

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By Press Trust of India | Updated: 13 July 2022

Chinese phone maker Oppo’s India unit has been slapped with a notice for alleged Rs. 4,389 crore import duty evasion, the Finance Ministry said on Wednesday.

A show-cause notice (SCN) has been slapped on Oppo India on July 8 after the recovery of documents during searches on its premises that indicated wilful misdeclaration in the description of some imports and remittance of royalty and license fees to various MNCs, including those based in China.

During an investigation of Oppo Mobiles India, a subsidiary of Guangdong Oppo Mobile Telecommunications Corporation, the Directorate of Revenue Intelligence (DRI) has detected Customs duty evasion of around Rs. 4,389 crore, the ministry said in a statement.

Reacting to the development, Oppo India said it has a “different view” on the charges mentioned in the SCN and will take appropriate steps, including legal remedies.

“We have a different view on the charges mentioned in the SCN. We believe it’s an industry-wide issue many corporates are working on. Oppo India is reviewing the SCN received from DRI, and we are going to reply to the notice, presenting our side, and will be working further with the related government departments.

“Oppo India is a responsible corporate and believes in the prudent corporate governance framework. Oppo India will take appropriate steps as may be needed in this regard including any remedies provided under the law,” Oppo said in an email response.

Oppo India is engaged in the business of manufacturing, assembling, wholesale trading, distribution of mobile handsets and accessories thereof across India. It deals in various brands of mobile phones, including Oppo, OnePlus, and Realme.

During the investigation, searches were conducted by the DRI at the office premises of Oppo India and residences of its key management employees, which led to the recovery of “incriminating evidence, indicating wilful misdeclaration in the description of certain items imported for use in the manufacture of mobile phones”. This misdeclaration resulted in wrongful availment of ineligible duty exemption benefits by Oppo India, amounting to Rs. 2,981 crore.

Senior management employees and domestic suppliers of Oppo India questioned by the DRI officers accepted the submission of wrongful description before the customs authorities at the time of import, the ministry said.

The investigation also revealed that Oppo India had remitted/made provisions for payment of ‘royalty’ and ‘licence fee’ to various multinational companies, including those based in China, in lieu of the use of proprietary technology/brand/IPR license etc.

The said ‘royalty’ and ‘licence fees’ paid by Oppo India were not being added to the transaction value of the goods imported by them, in violation of provisions of the Customs Act. The alleged duty evasion by Oppo India on this account is Rs 1,408 crore.

The ministry further said that Oppo India has voluntarily deposited Rs. 450 crore as partial differential customs duty short paid by them.

“After completion of the investigation, a show-cause notice has been issued to Oppo India demanding Customs duty amounting to Rs. 4,389 crore. The notice also proposes relevant penalties on Oppo India, its employees and Oppo China, under the provisions of the Customs Act, 1962,” the Ministry said.

In December last year, the Income Tax department too had conducted searches against Chinese handset manufacturing companies, including Oppo, and their linked persons and claimed to have detected alleged unaccounted income due to violation of the Indian tax law and regulations.

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NavIC Rollout: No Timeline Fixed For Implementing Indigenous GPS Alternative, MeitY Says

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By ANI | Updated: 27 September 2022

The central government has said that it has held a meeting with mobile manufacturers to discuss the compatibility of the home-grown global positioning system — NavIC — in smartphones, but no timeline was fixed for its implementation.

This clarification by the government came on Monday after media reports suggested India was looking to mandate its indigenous navigation system “within months”.

The Ministry of Electronics and Information Technology (MeitY) said the meeting was “consultative”.

“A media report has claimed citing a meeting that mobile cos were asked to make smartphones compatible with NavIC within months. This is to clarify: (1) No timeline has been fixed. (2) The cited meeting was consultative; and (3) the issue is under discussion with all stakeholders,” the Ministry of Electronics and IT said in a tweet late on Monday night.

What is NavIC? How is it different from its previous version IRNSS?

NavIC (Navigation with Indian Constellation) is the name of the independent stand-alone navigation satellite system of India.

This system was earlier known as IRNSS (Indian Regional Navigation Satellite System).

The name NavIC was coined by the Prime Minister of India on the occasion of the completion of the constellation in April 2016.

Which are the navigation satellite systems operational currently in the world?

Presently, there are four global systems, GPS from the US, GLONASS from Russia, Galileo from European Union and BeiDou from China.

In addition, there are two regional systems, NavIC from India and QZSS from Japan.

What is the need for NavIC when already GPS, GLONASS, Galileo and BeiDou are operating?

GPS and GLONASS are operated by defence agencies of the respective nations. It is possible that the civilian service can be degraded or denied.

NavIC is an independent regional system over the Indian region and does not depend on other systems for providing position service within the service region.

It is fully under the control of the Government of India.

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Apple to hike App Store prices in several countries from Oct

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By: Reuters, Updated September 20, 2022

Apple Inc said on Monday prices of apps and in-app purchases on its App Store will increase in several countries including Japan, Malaysia and all territories that use the euro currency, from next month.

The new prices, excluding auto-renewable subscriptions, will be effective as early as Oct. 5, Apple said in a blog post.

These changes will also reflect new regulations for Apple in Vietnam to collect and remit applicable taxes, being value added tax (VAT) and corporate income tax (CIT) at 5% rates respectively, the company added.

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Apple plans to use latest chip tech by Taiwan’s TSMC in iPhones, Macs – Nikkei

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By: Reuters, September 14, 2022

Sept 14 (Reuters) – Apple Inc is planning to use an updated version of Taiwanese chipmaker TSMC’s (2330.TW) latest chip producing technology in iPhones and Macbooks next year, the Nikkei Asia newspaper reported on Wednesday.

The A17 mobile processor, which is currently under development, will be mass-produced using TSMC’s N3E chipmaking tech, expected to be available in the second half of next year, the report said, citing people familiar with the matter.

The A17 will be used in the premium entry in the iPhone lineup slated for release in 2023, it added.

Apple declined to comment, while TSMC did not immediately respond to Reuters request for a comment.

The current iPhone model has an A15 processor chip and in the recent Apple launch event, the company said iPhone 14 Pro models will also have the same.

The chipmaker controls about 54% of the global market for contractually produced chips, supplying firms including Apple and Qualcomm Inc.

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New Apple iPhone will be available in Russia, trade minister says

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By: Reuters, September 8, 2022

Sept 8 (Reuters) – Russians will have the chance to buy the new Apple iPhone 14 despite the U.S. tech company having left the country thanks to Moscow’s parallel import scheme, a senior government official told the RIA Novosti news agency on Thursday.

Russia announced the scheme in March when it authorised retailers to import products from abroad without the trademark owner’s permission. read more

Asked whether the new iPhone, unveiled by Apple on Wednesday, would be imported under the scheme, Trade and Industry Minister Denis Manturov said: “Why not? If consumers want to buy these phones, yes. There will be the opportunity.”

Apple halted new product sales in Russia in March, a week after Russia invaded Ukraine, though the iPhone, MacBook and other Apple goods have remained available in Russian stores as retailers sell down their remaining stock of old models and get hold of newly released devices through the import scheme.

Russian mobile network MTS on Thursday morning was already selling the new iPhone 14 models on pre-order. Prices start from 84,990 roubles ($1,398) for the 128GB version.

MTS said delivery could take up to 120 days and it retained the right to cancel orders if it faced difficulties importing the products.

Apple did not immediately respond to a request to comment.

Manturov, who is also a deputy prime minister, said last month that the scheme, which covers Western products ranging from luxury clothes to cars, could reach $16 billion in value this year, equivalent to around 4% of Russia’s 2021 imports.

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Apple to appeal Brazil sales ban of iPhone without charger

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By: Reuters, September 7, 2022

SAO PAULO, Sept 6 (Reuters) – Apple Inc said on Tuesday it will appeal a Brazilian order banning it from selling iPhones without a battery charger, pushing back on claims that the company provides an incomplete product to consumers.

The Justice Ministry fined Apple 12.275 million reais ($2.38 million) and ordered the company to cancel sales of the iPhone 12 and newer models, in addition to suspending the sale of any iPhone model that does not come with a charger.

In the order, published on Tuesday in the country’s official gazette, the ministry argued that the iPhone was lacking a essential component in a “deliberate discriminatory practice against consumers.”

The authorities rejected Apple’s argument that the practice had the purpose of reducing carbon emissions, saying there is no evidence that selling the smartphone without a charger offers environmental protections.

Apple said it would continue to work with Brazilian consumer protection agency Senacon in order to “resolve their concerns,” while saying it would appeal the decision.

“We have already won several court rulings in Brazil on this matter and we are confident that our customers are aware of the various options for charging and connecting their devices,” Apple said.

The order comes a day before Apple is expected to announce its new iPhone model.

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India considers restricting sale of sub-$150 phones by Chinese firms, Bloomberg reports

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By reuters | Updated: 29 August 2022

NEW DELHI, Aug 8 (Reuters) – India is seeking to restrict Chinese companies from its sub-$150 phone market in a bid to revive the prospects of domestic players, Bloomberg News reported on Monday, citing unidentified sources.

The move would be a blow to Chinese companies such as Xiaomi , according to the report. The plans coincide with rising concerns in India about Chinese brands undercutting local smartphone makers, it added.

It is unclear if the Indian government will announce policies or use informal channels to execute the block on Chinese smartphone makers, Bloomberg said, citing people familiar with the matter.

Chinese firms account for a major chunk of entry-level smartphones that are popular among users shifting away from traditional devices in India, which is the second largest mobile market in the world.

Indian firms such as Lava and MicroMax rapidly gained popularity after their launch over a decade ago, but have since lost market share to stiff competition from Chinese players.

Many Chinese companies have struggled to do business in India due to political tensions following a border clash in 2020. India cited security concerns in banning more than 300 Chinese apps, and has also tightened rules for Chinese companies investing in India.

Xiaomi and rival Vivo are being investigated by India’s financial crime fighting agency for alleged illegal remittances and money laundering. Both deny any wrongdoing.

The companies and the Indian government did not immediately respond to requests for comment on the report.

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