Brussels: The World Customs Organization (WCO) has ruled in favor of South Korea in a tariff classification dispute with India over radio units (RUs) used in mobile base stations, the Seoul government announced Friday. The ruling addresses an estimated 800 billion won (US$573 million) in tariffs and related charges for RUs exported by South Korean tech giant Samsung Electronics Co. to India.

According to Yonhap News Agency, the Brussels-based intergovernmental body determined that the RUs should be classified as "parts," which are exempt from tariffs. This decision stands in contrast to India's previous classification of the RUs as "telecommunication equipment," which are subject to a 20 percent tariff.

While WCO decisions are not legally binding on individual member states, the South Korean Ministry of Economy and Finance emphasized that this ruling is significant, reflecting international consensus in support of South Korea's stance. A ministry official stated that the decision is expected to benefit South Korean companies as they continue discussions with Indian tax authorities.