Revenue intelligence authorities allege non-inclusion of royalty payments in assessable import valuations.
LG Electronics India has received a show-cause notice from Indian customs authorities seeking the recovery of $18.3 million in unpaid customs duties, according to a regulatory disclosure released on Friday.
The notice follows an investigation by the Directorate of Revenue Intelligence (DRI), which alleges that the consumer electronics major failed to include royalty payments in the assessable valuation of certain imported components, leading to a consequential short-payment of customs duties. Issued on 22 September 2026 by the Office of the Commissioner of Customs, Jawaharlal Nehru Customs House at the Nhava Sheva port near Mumbai, the notice formally proposes full recovery of the disputed sum.
LG Electronics India, which manufactures home appliances and consumer electronics including televisions, washing machines, and refrigerators, stated that it is reviewing the legal notice and intends to submit a formal response within the mandated timeframe. The firm reiterated that it believes all customs duties were paid appropriately in full compliance with the relevant provisions of India’s Customs Act.
