Oppo India is ditching the China tier of its local distribution network that the mobile phone maker set up when it opened for business. According to a report in The Economic Times, the company is changing its channel management to sell smartphones directly to local distributors.
Oppo India’s decision to scrap the Chinese layer of its local distribution network comes amid heightened government scrutiny of Chinese smartphone makers such as Oppo and Vivo operating through distribution partners in China. That’s what I mean. India is pressuring Chinese mobile phone brands to use only local distributors, he added in the ET report.
Last July, the Revenue Information Department (DRI) slapped a show cause notice of Rs 438.9 billion against Chinese smartphone maker Oppo India for evading tariffs by abusing exemption benefits. The Chinese company works with mobile brands such as Oppo, OnePlus and Realme.
During an investigation into Oppo Mobiles India Private Limited, a subsidiary of Guangdong Oppo Mobile Telecommunications Corporation Ltd – China (Oppo China), the DRI detected about 438.9 billion rupees in tariff evasion, the finance ministry said Wednesday.
During the investigation, DRI conducted investigations at Oppo India’s office premises and residences of its key management employees and recovered incriminating evidence. Manufacture of mobile phones.
The investigation found that Oppo India sent/arranged payments of ‘royalties’ and ‘licensing fees’ to various multinationals, including those based in China, in exchange for using their own technology/brand/IPR licenses, etc. It was also revealed that
The aforementioned “royalties” and “licensing fees” paid by Oppo India were not added to the transaction value of the goods they imported in violation of the provisions of the Customs Act. His alleged duty evasion by Oppo India on this account is 1,408 kroner.