On 3rd August 2022, the Directorate of Revenue Intelligence (DRI) informed that it has detected Rs 2217 crores custom duty evasion by Vivo Mobile India Private Limited. The information was shared through a press release by the Press Information Bureau. Vivo Mobile India Private Limited is a subsidiary company of Vivo Communication Technology Co. Ltd., Guangdong, China. Vivo Mobile India is engaged in the business of manufacturing, assembling, wholesale trading as well as distributing of mobile handsets and accessories thereof.
The press release said, during an investigation pertaining to M/s Vivo Mobile India Private Limited, DRI detected Customs duty evasion of around Rs 2,217 crore. During the probe, DRI officials launched raids at Vivo India’s industrial plants, which resulted in the seizure of irrefutable evidence suggesting deliberate mis-declaration in the specifications of certain components sourced by the organization to be utilized in the production of cellphones.
Vivo India misleadingly contended unlawful duty exemption savings of Rs 2,217 crore as a byproduct of this misinformation. With the conclusion of the inquiry, a Show Cause Notice was served to Vivo India, requesting Rs. 2,217 crores in Customs duty under the terms of the Customs Act of 1962. Vivo India has voluntarily made a deposit of Rs 60 crore to cover its differential duty burden. It is notable that, show cause notices demanding duty of Rs. 4,403.88 crores have recently been issued to Oppo Mobiles India Private Limited as part of another series of inquiries by DRI.
Both Vivo and Oppo are owned by Chinese multinational giant BBK Electronics Corporation. Oppo has two other subsidiaries, OnePlus and Realme.
