India probes Samsung, LG over alleged OLED TV-parts duty underpayment
India’s Directorate of Revenue Intelligence is investigating Samsung and LG over whether OLED open-cell imports qualified for a 5% concessional duty rather than a 15% rate. A ruling against the companies could increase premium TV input costs in a market valued at $4.7 billion last year.
What happened
India’s DRI is investigating Samsung and LG over alleged underpayment of import duty on OLED open cells. The dispute could raise TV input costs as industry
Key facts
- 5% concessional import duty claimed
- 15% duty sought by authorities for OLED components
- India TV market valued at $4.7 billion last year
- OLED accounted for nearly 4% of TV sales
- display and TV-parts imports rose 15% year-on-year to $5.6 billion by March 2026
Why this matters
The probe raises the strategic value of India-based TV-component assembly, compliant supply-chain partnerships and localized OLED sourcing.
What to watch
- Formal DRI show-cause notices, assessed duty amounts, and whether investigations cover prior import periods.
- Customs clarification or tribunal ruling on whether OLED open cells qualify for the concessional 5% rate.
- Evidence that customs begins collecting 15% duty on new shipments pending adjudication.
- Samsung or LG disclosures of contingent liabilities, provisions, changed sourcing, or premium-TV price adjustments in India.
- Competitor pricing and promotions from Sony, Xiaomi, TCL, Hisense, and domestic assemblers in the premium-TV segment.
- Indian policy moves expanding incentives or tariff differentiation for locally manufactured TV panels and components.
- Audit OLED open-cell import classifications, country-of-origin records, and concessional-duty documentation across historical shipments.
- Model landed-cost exposure under 5%, 10%, and 15% duty outcomes, including interest and penalties, and ring-fence potential provisions.
- Increase near-term inventory coverage for affected premium models before any customs-practice change, while avoiding excess stock vulnerable to discounting.
- Prepare a segmented pricing response: preserve headline price points where possible, reduce retailer-funded promotions first, and selectively raise OLED/MSRP pricing if costs persist.
- Accelerate local assembly and evaluate whether domestic value-add, alternative panel configurations, or supplier contracts can reduce future duty exposure.
- Engage retailers early on allocation, promotional calendars, and substitution toward QLED, Mini-LED, and locally assembled models if OLED supply economics worsen.