Samsung imports OLED TV parts to assemble its high-end TVs in India. The country has now launched an investigation against the company for allegedly paying lower import tariffs on these imports.

A similar investigation has also been launched against LG, which also imports OLED TV parts in the country.

The imported parts are utilized for making OLED panels that are then assembled into TVs sold in the local market which is estimated to be worth $4.7 billion.

Officials are of the view that both Samsung and LG have incorrectly claimed the concessional 5% tariff on these parts, as the lower rate is only allowed for older LCD and LEDs that are used in mass-market TVs. They argue that the companies should have paid a 15% tariff on the imported parts instead.

Reuters reports that Samsung and LG are privately opposing this position of the authorities on the basis that OLED is fundamentally an advanced form of LED technology, so the concessional tariff should apply.

Samsung has said in a statement provided to the scribe that it's reviewing the matter, and that “it is firmly committed to complying with all laws.”

It remains to be seen what becomes of this investigation, but typically penalties can be imposed of up to 100% of the duty evaded.