Xiaomi India Import Duty Evasion: A notice of Rs 653 crore has been issued to the Indian unit of Chinese phone maker Xiaomi for alleged evasion of import duty. This information was given in an official statement.
The Union Finance Ministry on Wednesday said that a show-cause notice has been issued to Xiaomi India on the basis of documents recovered during searches at its premises. The Directorate of Revenue Intelligence (DRI) during the investigation had found that the amount of royalty was not included in the fixed value of the goods imported by Xiaomi India and its contract manufacturing companies, which is in violation of the customs law.
The ministry said that Xiaomi India was avoiding customs duty by not adding ‘royalty and license fee’ to the transaction value. According to the ministry, after the completion of the DRI investigation, Xiaomi Technology India Pvt Ltd has been charged under the provisions of the Customs Act, 1962 for demand and recovery of duty of Rs 653 crore for the period from April 1, 2017 to June 30, 2020. Three show cause notices have been issued.
Responding to an email sent in this regard, Xiaomi said, “At Xiaomi India, we attach utmost importance to ensuring that all Indian laws are complied with. The company said, at present, we are reviewing the notice in detail. As a responsible company, we will support the authorities with all the required documents.

EW Corresponent/Delhi