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LG and Samsung face India tariff investigation over OLED TV parts
India has opened an investigation into LG Electronics and Samsung over the tariffs paid on imported components used in OLED televisions, creating a new regulatory challenge for two of the biggest television manufacturers operating in the country.
The investigation centres on display components known as OLED open cells, which are imported for use in televisions assembled in India. Indian authorities believe the companies may have applied a 5% concessional tariff that was intended for display parts used in older LCD and LED technologies. Officials from the Directorate of Revenue Intelligence, or DRI, are examining whether OLED components should instead have attracted a 15% duty.
The issue is still under investigation, and there has been no final determination that LG or Samsung deliberately evaded customs duties. The companies’ position is that OLED should qualify for the same tariff treatment because the technology represents an advanced form of LED-based display technology. The disagreement therefore comes down in significant part to how India’s customs rules classify the imported components.
The distinction matters because the difference between a 5% and 15% duty can become substantial when applied to large volumes of imported display components. Neither Reuters nor the sources cited in its report provided a figure for the amount of duty that Indian authorities believe may have been underpaid.
The DRI’s investigation has already involved direct contact with both companies. According to people familiar with the matter, Indian officials visited Samsung India’s headquarters in Gurugram in recent weeks to question company officials about the imports. LG received written questions concerning its OLED components and has submitted responses to the authorities. One source said LG also made an unspecified voluntary payment to cover potential additional duty.
Samsung told Reuters that it was reviewing the matter and cooperating fully with the relevant authorities. The company also said it remains committed to complying with applicable laws. LG and India’s revenue authorities did not respond to Reuters’ requests for comment at the time of publication.
The dispute highlights a less visible part of the television business. Consumers generally see the finished OLED television as a single product, but the manufacturing process involves a complex international supply chain. Display panels and their component parts can cross borders before a finished television reaches a retail store.
That supply chain has become particularly important in India, where the government has spent years encouraging electronics manufacturers to increase domestic production. Companies such as Samsung and LG have established large manufacturing operations in the country, but advanced display components remain dependent on international supply networks.
OLED technology is also becoming more important in the premium television market. Unlike conventional LCD televisions, OLED displays use organic light-emitting diodes that can produce their own light. That allows OLED screens to deliver high contrast and deep blacks without relying on a separate backlight.
The technology has traditionally occupied the more expensive end of the television market. Research cited by Reuters estimates that approximately 6.5 million OLED televisions were sold globally last year. In India, OLED televisions represented close to 4% of the country’s television market, which was valued at approximately $4.7 billion last year, according to Counterpoint Research data cited in the report.
That relatively small market share makes the tariff dispute especially relevant to manufacturers attempting to expand premium television sales. A higher import duty on key display components can increase manufacturing costs and potentially affect the final price of televisions.
LG has made OLED a central part of its premium television strategy in India. The company said in August that its television business in the country was experiencing strong growth. It reported an overall television market share of around 26%, while its OLED business accounted for almost 59% of the OLED market by value, according to Reuters.
Samsung is also expanding its OLED television presence in India, including televisions manufactured domestically. Reuters cited a price of $2,415 for one locally made 65-inch Samsung OLED television, illustrating the premium positioning of the technology.
The tariff dispute comes at a sensitive time for Samsung in India. The company is already contesting a separate tax demand of approximately $520 million related to the classification of imported networking equipment. That case concerns a different category of products from the OLED investigation.
For LG, the current investigation comes after its Indian business became publicly listed on the Mumbai stock exchanges last year. The listing placed a much greater spotlight on the performance of LG’s Indian operations and its prospects in one of the world’s largest consumer markets.
The investigation could also have implications beyond the two companies.
Industry groups representing electronics manufacturers have been pressing the Indian government to extend the 5% concessional tariff to OLED display components. In August, the Consumer Electronics and Appliances Manufacturers Association and the Manufacturers’ Association for Information Technology submitted confidential letters to India’s IT ministry arguing that the current tariff structure creates an uneven playing field between manufacturers using older display technologies and those investing in OLED.
The industry groups argue that manufacturers using more advanced OLED technology face higher input costs because the concessional treatment is limited to LCD and LED display components. They have called for OLED parts to receive the same 5% treatment.
Their argument goes beyond the immediate cost of importing a component. Industry representatives say the current rules could make it more expensive for companies to expand advanced display manufacturing in India, potentially working against the government’s broader “Make in India” manufacturing ambitions.
The groups are also seeking changes to the treatment of machinery used to manufacture OLED displays. According to letters reviewed by Reuters, existing duty exemptions cover machinery for older LCD technology but do not provide equivalent treatment for OLED manufacturing equipment. Industry representatives argue that this increases the capital cost of establishing advanced display production in India.
The issue is becoming more significant as India’s imports of displays and related television components continue to grow. Government data cited by Reuters showed that imports of displays, including TV parts, increased 15% over one year to $5.6 billion in the period ending March 2026.
That figure illustrates the scale of India’s dependence on imported display technology even as the country expands domestic electronics manufacturing.
For the government, the investigation presents a difficult balance. Customs authorities are responsible for enforcing existing tariff rules, while policymakers are simultaneously trying to attract investment in higher-value electronics manufacturing.
If OLED components are ultimately found to fall outside the existing 5% concession, manufacturers could face higher costs on imported parts. If the government instead changes the tariff rules to explicitly include OLED components, it could provide the industry with greater clarity and reduce the uncertainty surrounding future imports.
The classification dispute is particularly important because display technology has evolved rapidly. LCD, LED and OLED are often discussed as separate categories by consumers, but customs classification can involve much more specific technical and legal definitions.
The difference between how a technology is marketed and how its components are classified under customs law can therefore create disputes. A manufacturer may view a newer display technology as part of an evolutionary chain, while customs authorities may determine that its components belong to a different tariff category.
That appears to be at the heart of the current disagreement.
Indian authorities’ position, according to the sources cited by Reuters, is that the 5% rate was historically intended for parts associated with LCD and LED televisions. Their view is that OLED open cells do not automatically qualify simply because they are part of the broader television display technology sector.
LG and Samsung take a different position. The companies believe OLED should receive the same tariff treatment, describing it as an advanced form of LED technology for the purposes of the dispute.
The final outcome could determine whether the companies face additional duty demands. Indian authorities can issue tax demand notices after an investigation, and penalties can potentially reach up to 100% of the duty determined to have been evaded, according to Reuters. Companies can challenge such demands through the legal system.
At this stage, however, there is no confirmed final assessment against either LG or Samsung arising from the OLED investigation.
The matter also demonstrates why tariff policy has become increasingly important for India’s consumer electronics sector. The country wants to expand domestic manufacturing, reduce dependence on imported components and attract companies capable of producing increasingly sophisticated electronics.
Televisions sit within that broader transformation. Basic assembly can take place domestically while critical components continue to arrive from overseas suppliers. As manufacturers move toward more advanced technologies, disputes over the tariff treatment of those components are likely to become more consequential.
OLED is a particularly important example because the technology occupies the premium end of the television market and requires components that are different from those used in conventional LCD products.
The investigation could therefore influence more than the accounting treatment of past imports. It could affect how manufacturers calculate future production costs, how industry groups lobby for tariff changes and how companies assess the economics of expanding advanced television production in India.
For consumers, the immediate effect is less certain. A final decision resulting in higher costs for manufacturers could put pressure on the economics of OLED television production, although companies may absorb some costs rather than passing them directly to buyers. Conversely, a change to the tariff structure could lower the cost burden associated with imported OLED components.
The broader industry is watching closely because clarity is valuable for manufacturers planning investments several years ahead. Companies need to know which tariff rates will apply to the components and machinery required for new production lines before committing substantial capital.
The government has not yet publicly settled the dispute. The IT ministry and the industry associations involved in the lobbying effort did not respond to Reuters’ requests for comment.
For now, LG and Samsung remain under scrutiny while Indian authorities examine their treatment of OLED display imports. The companies’ competing interpretations of India’s tariff rules have turned what might otherwise appear to be a technical customs classification question into a much larger discussion about the future of advanced electronics manufacturing in the country.
The eventual decision could determine whether OLED display components continue to receive the lower tariff treatment claimed by the manufacturers or whether companies importing them will face the higher rate sought by Indian authorities.
Either way, the investigation has put a spotlight on one of the most important parts of India’s rapidly developing consumer electronics supply chain. It also shows that as manufacturers move into newer technologies, the rules governing older product categories may increasingly come under pressure to catch up.
