Centre puts laptops, PCs and tablets import curbs on hold till October 31

The Directorate General of Foreign Trade (DGFT) on Friday said that it would delay the implementation of the licensing requirement for imports of laptops, tablets, and personal computers further till October 31, 2023.  

The DGFT, however, noted that a valid licence for restricted imports will be required "with effect from November 1". 

"Import consignments can be cleared till October 31, 2023 without a licence for restricted imports," the Directorate General of Foreign Trade (DGFT) stated in the notification issued on Friday. 

Liberal transitional arrangements are notified for the import of laptops, tablets, all-in-one personal computers, servers, etc, till October 31, it added. 

On Thursday,

the Centre imposed restricted on imports of laptops, tablets, and personal computers with immediate effect. The government said in a notification that the imports would be allowed against a valid licence for restricted imports.  

The Ministry of Commerce and Industry said in the notification: “Import of laptops, tablets, all-in-one personal computers, and ultra-small form factor computers and servers falling under HSN 8741 shall be ‘restricted’ and their import would be allowed against a valid licence for restricted imports.” 

Earlier on Friday it was reported that the government had pushed the order by at least a month. 

Rajeev Chandrasekhar, Minister of State for Electronics and IT, said a transition period would be in place before the rollout of the new norms. 

It was also predicted that the government is likely to give more time to companies to apply for licences to import laptops and other devices, extending stipulated timelines of import restrictions. 

In a tweet, Chandrasekhar said the objective behind the move was to "ensure trusted hardware and systems, reduce import dependence and increase domestic mfg of this category of products". 

"This is not at all about license raj - It is about regulating imports to ensure trusted and verifiable systems AND ensuring India tech eco-system uses trusted and verified systems only that are imported and/or domestically manufactured trusted systems/products," he added. 

 

The exemption will be provided on the import licence only for up to 20 of such items per consignment for the purpose of research and development, testing, benchmarking and evaluation, repair, and re-export and for product development, the commerce ministry had stated. However, the products will have to be re-exported or destroyed after the completion of the task. The makers won't be able to sell those products.

Besides, DGFT is also in the process of preparing a portal where companies/traders can apply online for a license. It is expected that DGFT will issue a licence within 1-2 days if details are filled in properly. The ministry will also extend all support to the industry for clearance of shipments in transit, if any. 

It has been clarified by the ministry that companies/traders can import IT Hardware like Laptops, Tablets, All-in-one Personal Computers, and Ultra small form factor Computers and Servers (IT devices) after obtaining a licence. There is no ban on imports. 

The Centre's recent decision to restrict imports is backed by the idea that Indian manufacturers can fill the gap, since electronics imports, including laptops, tablets, and personal computers, accounted for $19.7 billion between April and June 2023, expanding at a rate of roughly 6% each year. 

The decision is to further support the Production Linked Incentive 2.0 for IT Hardware. The PLI Scheme 2.0 is expected to enhance the hardware manufacturing ecosystem. The policy announcement aims to be a positive move, as it seeks to restrict certain electronics imports and enforce licenses for restricted items, promoting domestic production and self-reliance.

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