India has launched an investigation into LG Electronics and Samsung Electronics, questioning whether the companies correctly classified imports of advanced OLED display components used in high-end televisions. Authorities allege that the companies applied a 5% concessional tariff rate—intended for older LCD and LED display technologies—that should not have been extended to OLED components, potentially resulting in lower duties than required under Indian customs regulations.
The probe centers on whether LG and Samsung improperly classified certain OLED glass screens and advanced OLED display components as falling under the preferential tariff regime, which applies primarily to mass-market LCD and LED TVs. If confirmed, the misclassification could have led to underpayment of duties, raising concerns about compliance with India’s trade policies.
The investigation follows a pattern of scrutiny in India’s electronics sector, where authorities have previously targeted companies for alleged violations of import tariff rules. The case underscores broader regulatory efforts to ensure accurate classification of high-value components, particularly in sectors like display technologies where global competition is intense.
LG and Samsung have not yet publicly commented on the probe, but the development comes amid ongoing discussions about India’s trade policies and their impact on foreign manufacturers. The outcome of the investigation could set important precedents for how tariffs are applied to advanced display technologies in the country’s burgeoning electronics market.
