BMW Might Face Indian Import Duty Probe and Fine

BMW logo 1 photo
Photo: BMW
According to German publication WirtschatsWoche and, BMW might be soon facing a fine of around $100 million, due to alleged violations of import rules.
At the moment, the Munich-based manufacturer is assembling various BMW and MINI products in India, using Completely Knocked Down kits, to avoid the huge import taxes for luxury vehicles, enforced by the Indian government.

According to India's customs, the German company declared the imported parts as part of larger assemblies rather than as separates, therefore further reducing the taxes that had to be payed.

At first, the Indian custom authorities imposed a fine of $100 million but the sum might soon be raised, according to the same source for WirtschaftsWoche. However, BMW appealed the decision, waiting for an official verdict at the moment.

For now, BMW officials in India refused to comment on the subject but announced that they are cooperating with Indian authorities that, in turn, decided to keep their silence until further development.

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