India investigates LG and Samsung over OLED import tariffs

India’s Directorate of Revenue Intelligence is investigating LG Electronics and Samsung for allegedly evading higher import tariffs on OLED TV display parts. The probe centers on whether the companies wrongly claimed a lower duty rate reserved for older LCD and LED technologies, potentially exposing them to significant penalties.

Investigation into tariff evasion

According to Mint (Technology), India’s Directorate of Revenue Intelligence is investigating LG Electronics and Samsung for allegedly evading higher import tariffs on OLED TV display parts. The probe focuses on whether the companies wrongly claimed a concessional 5% duty on OLED glass screens, a rate typically reserved for older LCD and LED technologies.

Indian authorities argue that OLED parts should be subject to a 15% import duty, as they do not qualify for the lower rate. The investigation centers on the classification of these components and whether the companies deliberately misrepresented their nature to reduce costs.

Companies’ responses and potential penalties

Samsung and LG have taken different approaches in their interactions with investigators. According to Mint (Technology), Samsung cooperated with officials during a visit to its Gurugram headquarters, where representatives were questioned about the imports. Meanwhile, LG submitted written responses to authorities and made a voluntary monetary deposit to cover any additional duties that might be levied.

Both companies maintain that OLED technology is an advanced form of LED and should qualify for the same 5% concessional tariff. However, authorities have the power to impose penalties of up to 100% of the duty evaded if they find evidence of wrongdoing.

Market impact and industry lobbying

LG Electronics’ India unit, which listed on Mumbai’s stock exchanges last year, holds a 26% share of the country’s TV market. In value terms, its OLED segment accounts for nearly 59% of the market, reflecting the technology’s growing dominance in the premium segment.

Industry groups, including the Consumer Electronics and Appliances Manufacturers Association and MAIT, have raised concerns about the current tariff structure. According to Mint (Technology), they argue that limiting the 5% duty to LCD and LED display parts creates an "anomalous situation," placing OLED manufacturers at a disadvantage due to higher input costs. This, they say, reduces competitiveness in the market.

The groups are lobbying for OLED display parts to be included in the 5% duty regime, citing the need for parity with older technologies. They also highlight that higher capital costs for OLED manufacturing could hinder investment in India’s display technology sector.

Broader trade trends

India’s imports of displays and TV parts have risen sharply, increasing 15% to $5.6 billion by March 2026, according to Mint (Technology). This growth underscores the country’s reliance on imported components for its consumer electronics sector.

Samsung is separately contesting a $520 million tax demand related to the misclassification of networking gear imports, signaling broader challenges for multinational corporations navigating India’s trade policies.

Context on India’s tariff policies

India’s trade policies often aim to balance domestic manufacturing growth with the need to import advanced technologies. Import tariffs are frequently used to protect local industries or incentivize domestic production, but these policies can create friction when they fail to keep pace with technological advancements.

OLED technology, which offers superior picture quality and energy efficiency compared to LCD and LED, has become a key differentiator in the premium TV market. However, its classification under existing tariff regimes remains a point of contention, as seen in this investigation.

What this means

LazyFounders analysis — our interpretation, not reported fact.

This investigation highlights the growing tension between evolving technology and static trade policies. For founders and operators in the consumer electronics space, it’s a reminder of how quickly regulatory frameworks can become misaligned with innovation.

OLED technology is no longer niche—it’s a dominant force in premium TV markets. If India’s tariff structure doesn’t adapt, manufacturers may face higher costs, which could trickle down to consumers or force price adjustments. For startups in hardware or supply chain-adjacent fields, this case underscores the importance of proactively engaging with regulators to shape policies that reflect technological advancements.

The outcome could also set a precedent for how other emerging markets handle similar disputes, particularly as OLED adoption grows.

Key takeaways

• India is scrutinizing LG Electronics and Samsung for allegedly misclassifying OLED display parts to avoid higher import tariffs.
• Authorities claim OLED parts should incur a 15% duty, while the companies argue they qualify for a 5% concessional tariff.
• Penalties for duty evasion could be severe, including fines up to 100% of the evaded amount.
• Samsung cooperated with investigators, while LG submitted written responses and a voluntary deposit.
• Industry groups are pushing for policy changes to include OLED parts in the lower duty regime, citing competitiveness concerns.

FAQ

Why is India investigating LG and Samsung?

India is investigating whether LG Electronics and Samsung wrongly claimed a 5% concessional import tariff on OLED TV display parts, a rate meant for older LCD and LED technologies. Authorities believe a 15% duty should apply to OLED parts.

What penalties could the companies face?

If found guilty of duty evasion, LG and Samsung could face penalties of up to 100% of the evaded tariff amount, in addition to demands for unpaid duties.

How are LG and Samsung responding to the investigation?

Samsung cooperated with investigators during a visit to its Gurugram headquarters, while LG submitted written responses and made a voluntary monetary deposit to cover potential duties.

What is the industry’s stance on OLED tariffs?

Industry groups are lobbying for OLED display parts to be included in the 5% duty regime, arguing that the current policy disadvantages manufacturers and increases costs.

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