DRI detects customs duty evasion of Rs 2217 crore by Vivo India, show cause notice issued

The Directorate of Revenue and Intelligence (DRI) Wednesday said it has detected a customs duty evasion to the tune of Rs 2,217 crore, during an investigation pertaining to Vivo Mobile India Private Limited (Vivo India). Consequently, a show cause notice has been issued to the smartphone company.

Vivo India is a subsidiary company of Vivo Communication Technology Co. Ltd., Guangdong, China, and is engaged in the business of manufacturing, assembling, wholesale trading as well as distribution of mobile handsets and accessories thereof.

“During the course of investigation, searches were conducted by DRI officers at the factory premises of M/s Vivo India, which led to the recovery of incriminating evidence indicating willful misdeclaration in the description of certain items imported by M/s Vivo India, for use in the manufacture of mobile phones,” the agency said in an official statement.


This misdeclaration resulted in “wrongful availment of ineligible duty exemption benefits by M/s Vivo India, amounting to Rs 2,217 crore”.

“After completion of the investigation, a Show Cause Notice has been issued to M/s Vivo India demanding Customs duty amounting to Rs. 2,217 crore, under the provisions of the Customs Act, 1962,” the agency said.

A sum of Rs 60 crore has been voluntarily deposited by Vivo India, towards discharge of ots differential duty liability.

“Recently, in another set of investigations conducted by DRI, Show Cause Notices demanding duty of Rs. 4,403.88 crore have been issued to M/s Oppo Mobiles India Private Limited,” the statement added.