LG Electronics’ India Unit Ordered to Pay 150 Million Won in Duties and Fines on Commercial Displays

【New Delhi, India—Pragya Awasthi, Correspondent】LG Electronics’ India unit has received an order from Indian customs authorities to pay additional duties and a fine totaling 10.63 million rupees (about 150.41 million won) over the tariff classification of imported commercial display products.
According to local Indian media on the 2nd, LG Electronics’ India unit was notified on the 30th of last month of a final tax assessment order from the Principal Commissioner of Customs (Import) under the Sahar Air Cargo Customs House in Mumbai.
The total amount imposed under the measure was 10,630,064 rupees (about 150.73 million won), including additional duties of 6,130,064 rupees, a recovery of 4 million rupees and a fine of 500,000 rupees.
The case arose from a dispute over the classification (CTH) of commercial signage displays that LG Electronics’ India unit declared for import on February 17, 2024 (declaration number 2178521). The company had received a 0% basic customs duty (BCD) rate under the CTH 85285200 classification it had previously applied, but customs authorities reclassified the goods under CTH 85285900.
The reclassified goods are subject to a 10% basic customs duty and a 28% integrated goods and services tax (IGST), and customs calculated the resulting differential duties, recovery and fine. The measure follows a notice seeking an explanation issued in May.
LG Electronics’ India unit disclosed the matter to the National Stock Exchange of India and the Bombay Stock Exchange. It is reportedly assessing the order’s potential impact and weighing its next steps.
[email protected] Pragya Awasthi, Correspondent Reporter