DRI detects ₹2,217 crore customs duty evasion by Vivo India

After completion of the investigation, a show cause notice has been issued to Vivo India.

The Directorate of Revenue Intelligence (DRI) has detected customs duty evasion of around ₹2,217 crore by smartphone maker Vivo India, a subsidiary of China-based Vivo Communication Technology, a Finance Ministry statement issued Wednesday said.

During the investigation, searches were conducted by DRI officers at the factory premises of Vivo India, which led to the recovery of incriminating evidence indicating wilful misdeclaration in the description of certain items imported by it for use in the manufacture of mobile phones, it said.

This misdeclaration resulted in wrongful availment of ineligible duty exemption benefits by Vivo India, amounting to ₹2,217 crore, the statement said.

After completion of the investigation, a show cause notice has been issued to Vivo India demanding customs duty amounting to ₹2,217 crore, under the provisions of the Customs Act, 1962, it added.

₹60 crore has been voluntarily deposited by Vivo India, towards discharge of their differential duty liability, the statement said.

Vivo Mobile India Private Limited or Vivo India is a subsidiary company of Vivo Communication Technology Co Ltd, Guangdong, China, and is engaged in the business of manufacturing, assembling, wholesale trading as well as distribution of mobile handsets and accessories.

Recently, in another set of investigations conducted by the DRI, show-cause notices demanding a duty of ₹4,403.88 crore were issued to Oppo Mobiles India Private Limited.