The Directorate of Revenue Intelligence (DRI) and the Customs are currently in dispute with telecom companies regarding the alleged act of “mis-classification” of imported routers and modems in order to avoid paying the required Customs duty.

Several telecom companies, including some that were recently served with show cause notices, have been accused by the DRI or the Customs of evading Basic Customs Duty (BCD). It is worth noting that one prominent telecom company had received a show cause notice from the DRI nearly two years ago, suggesting that this matter has been pending for quite some time.

On September 15, Bharti Airtel Ltd was issued a show cause notice by the Principal Commissioner of Customs in New Delhi, who stated that the company had deliberately categorized other equipment as modems and routers in order to evade paying 10% or 20% BCD.