India has ordered Samsung and its executives to pay US$601 million in back taxes and penalties for tariff violations on telecom equipment imports.

Customs authorities allege that Samsung misclassified “Remote Radio Head” components used in mobile towers to evade duties between 2018 and 2021.

The company reportedly paid no tariffs on US$784 million worth of imports, though officials claim the components are subject to a 10% to 20% tariff.

Seven executives, including vice president Sung Beam Hong and chief financial officer Dong Won Chu, face additional fines totaling US$81 million.

The investigation began in 2021 with raids at Samsung’s offices in Mumbai and Gurugram, where authorities seized documents, emails, and electronic devices. Officials argue that internal correspondence describing the component as a transceiver supports their case.

Samsung denies any wrongdoing, stating the dispute is about customs classification and that it complies with Indian laws.

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