Based upon an intelligence that M/s Xiaomi Technology India Private Limited (Xiaomi India) was evading customs duty by way of undervaluation, an investigation was initiated by the Directorate of Revenue Intelligence (DRI) against Xiaomi India and its contract manufacturers. During the investigation, searches were conducted by the DRI at the premises of Xiaomi India, which led to the recovery of incriminating documents indicating that Xiaomi India was remitting royalty and licence fee to Qualcomm USA and to Beijing Xiaomi Mobile Software Co. Ltd., under contractual obligation. Statements of key persons of Xiaomi India and its contract manufactures were recorded, during which one of the directors of Xiaomi India confirmed the said payments.

During the investigations, it further emerged that the “royalty and licence fee” paid by Xiaomi India to Qualcomm USA and to Beijing Xiaomi Mobile Software Co. Ltd., China (related party of Xiaomi India) were not being added in the transaction value of the goods imported by Xiaomi India and its contract manufacturers.

The investigations conducted by the DRI further showed that Xiaomi India is engaged in the sale of MI brand mobile phones and these mobile phones are either imported by Xiaomi India or assembled in India by importing parts and components of mobile phones by contract manufacturers of Xiaomi India. The MI brand mobile phones manufactured by the contract manufacturers are sold exclusively to Xiaomi India, in terms of the contract agreement.

Evidence gathered during the investigations by the DRI indicated that neither Xiaomi India nor its contract manufactures were including the amount of royalty paid by Xiaomi India in the assessable value of the goods imported by Xiaomi India and its contract manufacturers, which is in violation of Section 14 of the Customs Act, 1962 and Customs valuation (determination of value of imported goods) Rules 2007. By not adding “royalty and licence fee” into the transaction value, Xiaomi India was evading Customs duty being the beneficial owner of such imported mobile phones, the parts and components thereof.

After completion of the investigation by the DRI, three show cause notices have been issued to M/s Xiaomi Technology India Private Limited for demand and recovery of duty amounting to Rs. 653 crore for the period 01.04.2017 to 30.06.2020, under the provisions of the Customs Act, 1962.

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RM/KMN

[TO BE PUBLISHED IN THE GAZETTE OF INDIA,

EXTRAORDINARY, PART II,

SECTION 3, SUB-SECTION(i)]

GOVERNMENT OF INDIA

MINISTRY OF FINANCE

DEPARTMENT OF REVENUE

(CENTRAL BOARD OF INDIRECT TAXES AND CUSTOMS)

Notification No. 33 /2021-Customs (N.T.)

New Delhi, the29thof March, 2021

G.S.R. (E). -In exercise of the powers conferred by section 154C of the Customs Act, 1962 (52 of 1962),read with clause (7B) ofsection 2 of the said Act, the Central Board of Indirect Taxes and Customs hereby notifiesthe common portalaccessible through uniform resource locator (URL) https://www.icegate.gov.inas the Common Customs Electronic Portal for facilitating registration, filing of bills of entry, shipping bills, other documentsandforms prescribed under the saidAct or under any other law for the time being in force or the rules or regulations made thereunder, payment of duty, functions specifiedto be carried out through common portalthrough the said Act or rules madeunder section 156 of the said Act or regulations made under section 157 of the said Actand for data exchange with other systems within or outside India.

2.This notification shall come into force on the date of its publication in theOfficial Gazette.

[F. No. 450/77/2021-Cus.IV]

(AnanthRathakrishnan)

Deputy Secretary(Customs)

GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(DEPARTMENT OF REVENUE)

Notification No. 35/2019-Customs

New Delhi, the 30th September, 2019

G.S.R. (E).- In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of 1962), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby makes the following amendment in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 19/2019-Customs, dated the 6th July, 2019, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 476(E), dated the 6th July, 2019, namely:-

In the said notification, in the opening paragraph, after the words, “whole of the duty of customs leviable thereon”, the words, figures and brackets “under the said First Schedule, and whole of the integrated tax leviable thereon under sub-section (7) of section 3 of the said Act” shall be inserted.

2. This notification shall come into force on the 1st day of October, 2019.

[F.No.354/131/2019-TRU]

(Ruchi Bisht)
Under Secretary to the Government of India

Exchange Rate of conversion of the Foreign Currencies relating to Imported and Export Goods notified

Posted On: 16 MAY 2019

In exercise of the powers conferred by Section 14 of the Customs Act, 1962 (52 of 1962), and in super-session of the notification of the Central Board of Indirect Taxes and Customs (CBIC) No.35/2019-CUSTOMS (N.T.), dated 2^ndMay, 2019 except as respects things done or omitted to be done before such super-session, the Central Board of Indirect Taxes and Customs (CBIC) hereby determines that the Rate of Exchange of conversion of each of the Foreign Currencies specified in column (2) of each of Schedule I and Schedule II annexed hereto, into Indian currency or vice versa, shall, with effect from 17^th May, 2019, be the rate mentioned against it in the corresponding entry in column (3) thereof, for the purpose of the said Section, relating to Imported and Export Goods.

SCHEDULE–I

SCHEDULE–II

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