Samsung Electronics has paid a custom duty of Rs 3 billion to the Directorate of Revenue Intelligence (DRI) following an investigation by the agency into alleged duty evasion of import of 4G radio equipment by the company.

DRI has accused the company of wrongly claiming zero-duty status for the equipment and of duty evasion amounting to Rs 5 billion.

The investigations were initially intended to determine whether duty evasion was occurring through the use of free-trade agreements (FTAs) by rerouting network gear imports from Korea and Vietnam, thereby flouting local value addition regulations.

However, it was subsequently found that the company was importing the equipment claiming an exemption notification which did not apply to the equipment, and hence was liable to pay the duty at 20 per cent.