Int'l customs body sides with Korea in dispute with India over Samsung equipment

Samsung Electronics' retail store in India / Courtesy of Samsung Electronics

The World Customs Organization (WCO) has ruled in favor of Korea in a tariff classification dispute with India over radio units (RUs) used in mobile base stations, the Seoul government said Friday.

The dispute involves an estimated 800 billion won ($573 million) in tariffs and related charges for RUs exported by local tech giant Samsung Electronics to India, according to the Ministry of Economy and Finance.

The Brussels-based intergovernmental body determined that the RUs should be classified as "parts," which are exempt from tariffs.

The ruling contradicts India's previous classification of the RUs as "telecommunication equipment," subject to a 20 percent tariff.

Although WCO decisions are not legally binding on individual member states, the ministry emphasized that the ruling is meaningful as it reflects international consensus in support of Korea's position.

A ministry official said the decision is expected to work in favor of Korean companies as they continue discussions with Indian tax authorities.