Centre Holds Curbs on Import of laptops, PCs and tablets till October 31

New Delhi(India), 05/08/23: The Directorate General of Foreign Trade (DGFT) said on Friday that the licensing requirement for laptops, tablets, and personal computers will be delayed until October 31, 2023.

However, the DGFT stated that a valid licence for restricted imports will be required “effective November 1.”

The notification from the DGFT said, “Import consignments can be cleared till October 31, 2023 without a licence for restricted imports.”

Liberal transitional provisions have been announced for the import of laptops, tablets, all-in-one personal computers, servers, and other electronic devices until October 31, it added.

On Thursday it was announced that with immediate effect, the Centre has imposed restrictions on imports of laptops, tablets, and personal computers. The government stated in a notification that restricted imports would be permitted with a valid licence.

However on Friday, the administration was said to have delayed the directive by at least a month.

The transition time will be in place, according to Rajeev Chandrasekhar, Minister of State for Electronics and IT.

It was also projected that the government will grant corporations extra time to apply for licences to import laptops and other gadgets, so prolonging the specified timelines of import restrictions.

Chandrasekhar stated in a tweet that the goal of the move was to, “ensure trusted hardware and systems, reduce import dependence and increase domestic mfg of this category of products.”

He further added, “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.”

The exemption will be granted only for up to 20 such items per consignment for the purposes of research and development, testing, benchmarking and evaluation, repair and re-export, and product development, according to the trade ministry. However, once the task is completed, the products must be re-exported or destroyed. The creators will be unable to sell their creations.

Furthermore, the DGFT is in the process of developing a platform via which companies/traders can apply for a licence online. If all of the required information is provided, the DGFT is likely to issue a licence within 1-2 days. The ministry will also provide all necessary assistance to the industry for the clearance of any goods in transit.

Since electronics imports, including laptops, tablets, and personal computers, accounted for $19.7 billion between April and June 2023, growing at a rate of nearly 6% per year, the Centre’s recent decision to restrict imports is backed by the idea that Indian manufacturers can fill the gap.

The decision has been made to continue to support the Production Linked Incentive 2.0 for IT Hardware. The PLI Scheme 2.0 is expected to improve the ecosystem of hardware manufacturers. The policy announcement is intended to be a positive step, since it intends to ban some electronics imports and enforce licences for prohibited items, thereby encouraging domestic production and self-sufficiency.