LG Electronics India Limited received a Show Cause Notice from Indian Customs proposing recovery of ₹153.58 crore for alleged non-inclusion of royalty payments in imported goods' assessable value.

The notice, dated September 22, 2026, was issued by the Office of Commissioner of Customs (NS-V) at Jawaharlal Nehru Customs House, Nhava Sheva. It follows an investigation by the Directorate of Revenue Intelligence (DRI). The company stated it is evaluating the matter and will submit its response to the appropriate authority within the prescribed timeline.

Allegations on royalty payments

The customs authority alleges that LG Electronics failed to include royalty payments in the assessable value of certain imported goods. This omission allegedly resulted in short payment of customs duty. The proposed recovery amount is ₹153,57,67,711. No penalty has been imposed at this stage; the financial impact will be determined upon adjudication of the notice.

Broader context of tariff disputes

This development occurs amidst heightened regulatory scrutiny on electronics imports. Earlier reports indicated officials claimed a 15% duty is owed on OLED display parts, asserting that a 5% reduced duty was incorrectly applied. This dispute centers on tariff classification for high-end television components. While the existing probe focused on OLED parts classification, the new notice specifically targets royalty inclusion in assessable value.

Samsung, another major player under scrutiny alongside LG Electronics, stated it is reviewing similar issues and cooperating with authorities to ensure legal compliance. Both companies rely significantly on imported display panels and related components for their premium product lines.

Regulatory and market context

India has progressively tightened customs oversight on electronics imports to encourage domestic manufacturing. Tariff compliance for imported components remains a key area of regulatory focus for multinational electronics companies. LG Electronics believes it has appropriately paid customs duties in full compliance with the Customs Act, 1962, read with relevant Rules.

LG Electronics India today announced the launch of its new range of semi-automatic washing machines. The lineup includes 15 models with capacities ranging from 8 kg to 12 kg, featuring advanced technologies such as Dual Spin Shower and Wind Jet Dry+. Exports of these new models are scheduled to begin in 2027, targeting over 10 countries globally.

The new range addresses common laundry challenges like detergent residue and slow drying. Key features include a Toughened Glass Lid, Roller Jet Pulsator+, Ultra Scrub Wall, and Rat Away Technology. The machines are available in premium colour options including Onyx Black, Middle Black, and Burgundy.

Product Features

The appliances incorporate several technological upgrades aimed at improving wash quality and user convenience:

• Dual Spin Shower: Uses two water inlets to rinse away residual detergent.
• Roller Jet Pulsator+: Creates dynamic water movement to remove dirt.
• Ultra Scrub Wall: Designed with a scrub pattern for cuffs and collars.
• Wind Jet Dry+: Uses powerful airflow to remove excess moisture.
• Smart Filter: Captures lint efficiently during the wash cycle.

Manufacturing and Operations

The new range is manufactured at LG's Greater Noida facility, which operates as an Industry 5.0-centric smart factory. The plant utilizes AI-enabled operations, automation, robotics, and AGVs for production. The company conducts 100% quality checks and AI vision inspections to ensure operational efficiency.