Key Points
Samsung contests $601 million tax demand for telecom equipment imports
Company exploring legal recourse against customs classification
Smartphone exports from Samsung and Apple dominate Indian market
Government's PLI scheme drives manufacturing investments
The tax demand amounts to a significant portion of Samsung's net profit in India, which was $955 million last year.
Samsung's network division, which imports telecom equipment, had allegedly been under scrutiny for "misclassifying critical transmission components used in mobile towers".
The company reportedly imported and sold these telecom components to Reliance Jio.
Reliance Jio, however, was yet to comment on reports.
In a statement to IANS, a Samsung India spokesperson said that "Samsung is a responsible corporation and fully complies with the laws in India".
"The issue involves the interpretation of classification of goods by Customs. We are assessing legal options to ensure that our rights are fully protected," the spokesperson added.
Samsung argued that the parts did not attract any import duties and that officials had been aware of its classification method for years.
However, Customs authorities have not issued any statements regarding the case.
Meanwhile, 'Made in India' smartphone shipments grew 6 per cent (year-on-year) last year, driven by increasing exports from Apple and Samsung.
Apple and Samsung alone accounted for around 94 per cent of India's smartphone exports in 2024, according to Counterpoint Research's 'Make in India' Service report.
In 2024, Samsung continued to solidify its position as a dominant player in India's electronics manufacturing, registering a growth of 7 per cent YoY driven by increasing exports.
The government's PLI (production-linked incentive) scheme has encouraged global manufacturers to set up or expand their production facilities in the country.
