Chinese mobile phone maker Xiaomi evaded Rs 653 crore in customs duty: DRI

Three show-cause notices have been issued to the mobile maker for demand and recovery of duty for April 2017-June 2020

Chinese mobile phone maker Xiaomi’s India unit evaded customs duty worth Rs 653 crore by suppressing and undervaluing royalty and licence fee paid to overseas affiliates and partners, the Directorate of Revenue Intelligence (DRI) said on Wednesday.

Based on intelligence that Xiaomi India was evading customs duty by way of undervaluation, the DRI had initiated an investigation against the company and its contract manufacturers. “During the investigation, searches were conducted by the DRI, which led to the recovery of incriminating documents indicating that Xiaomi India was remitting royalty and licence fee to Qualcomm USA and to Beijing Xiaomi Mobile Software Co,