Quick Summary
Based upon an intelligence that M/s Xiaomi Technology India Private Limited (Xiaomi India) was evading customs duty by way of undervaluation, an investigation was initiated by the Directorate of Revenue Intelligence (DRI) against Xiaomi India and its contract manufacturers. During the investigation, searches were conducted by the DRI at the premises of Xiaomi India, which led to the recovery of incriminating documents indicating that Xiaomi India was remitting royalty and licence fee to Qualcomm
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FAQ :
The Directorate of Revenue Intelligence (DRI) alleges that Xiaomi India has evaded customs duty worth Rs 653 crore.
Xiaomi India allegedly evaded customs duty by not adding royalty and licence fees paid to Qualcomm USA and Beijing Xiaomi Mobile Software Co. Ltd. to the transaction value of imported goods.
The total amount of customs duty allegedly evaded by Xiaomi India is Rs 653 crore.
The investigation covers the period from 01.04.2017 to 30.06.2020.
The DRI has issued three show cause notices to Xiaomi India for the demand and recovery of the alleged evaded duty.
The DRI's action is based on the alleged violation of Section 14 of the Customs Act, 1962 and Customs valuation (determination of value of imported goods) Rules 2007.
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