India stalls export of 27,000 Vivo phones worth $15 million amid tax evasion probe

The revenue intelligence arm of India'sfinance ministrystalled the export of 27,000 Vivo phones from India worth $15 million to the neighbouring countries. Guaongzhou-headquartered smartphone major has mis-declared the device models and their market values, according to Directorate of Revenue Intelligence, following which it was stopped from shipping the devices from India to markets in its vicinity such as Thailand and Gulf nations.

A Bloomberg report further quoted an industry lobby group – the India Cellular and Electronics Association (ICEA) – calling the government agency’s actions 'unfortunate'.

“We request your kind and urgent intervention to stop this unfortunate course of action,” ICEA chairman Pankaj Mohindroo wrote to the finance ministry. “Such unwarranted actions by enforcement agencies will diffuse the drive and motivation to encourage electronics manufacturing and exports from India.”

The current export tusslecomes shortly after the government’s increased scrutiny of Chinese companies including SAIC’s MG Motor, Xiaomi, ZTE, Oppo and others.

The Central Board of Indirect Taxes andCustoms (CBIC) has registered cases against 43 mobile and equipment manufacturing companies between 2019 and 2022.

Vivo exported its first batch of India-made smartphones in early November to markets such as Saudi Arabia and Thailand. But reports say that stalling of exportcould hurtVivo’s future in the world’s second-biggest smartphone market, where the company is already under scrutiny.

India, in recent years, has ramped up efforts to boost home-grown supply chains from both domestic and foreign firms alike.India expects toexportelectronics products worth $120 billion by the end of March 2026.

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