To protect national security and support domestic production, the government on Thursday placed immediate import restrictions on specific laptop, tablet, and computer models.
The action will also reduce supplies of these commodities into the country from nations like China and Korea.
Now, to import these goods, importers must request permission or a license from the government.
There are many reasons for placing these limits, but the main one is “to ensure that the security of our citizens is fully safeguarded,” according to a senior government official.
The source added that the country’s internet penetration is rising significantly, and against this backdrop, Indian residents need access to an environment and ecosystem free from potentially dangerous devices.
“We have taken into account a small number of those goods,” he continued, “but some of the hardware could potentially have security-related issues and could compromise sensitive and personal data.”
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But according to a notification from the Directorate General of Foreign Trade (DGFT), some exceptions have been made to these restrictions.
It stated that the import of laptops, tablets, all-in-one PCs, ultra-small form factor computers, and servers was “restricted” as of right away.
The official continued by stating that “safety is the topmost priority” of the government and that the action is following WTO regulations.
If the bill of lading & letter of credit have been issued or open before August 3, that import shipments can be imported following the transition conditions of the foreign trade policy (FTP).
From August 4, an importer may submit a license application. To obtain a license, the dealer should be a frequent importer.
The official explained, “The idea is not to prohibit imports but to regulate incoming shipments of these goods.”
The official responded “no” when asked if the action will have an effect on domestic prices. Industry experts have raised concerns, meanwhile, that it would result in a spike in the cost of this equipment.
Microcomputers, big or mainframe computers, as well as particular data processing devices are all subject to the constraints. All of these things may be imported with a valid license.
For up to 20 products per consignment, for research and development, testing, benchmarking including evaluation, repair plus return, and product development reasons, there is an exemption from the requirement for an import license, it was stated.
Additionally, these restrictions do not apply to imports following the luggage rules, which permit the inclusion of one new and one used laptop per bag.
In addition, imports of one laptop, tablet, personal computer, or ultra-small form factor computer that are ordered from e-commerce websites and delivered by mail or courier are excluded from the need for import licenses.
However, it added that these imports must be paid duties as needed and that there would be exceptions if the items were utilized as a crucial component of capital goods like a machine.
A survey by the think tank Global Trade Research Initiative (GTRI) claims that only three product categories account for 65% of India’s imports from China: electronics, machinery, and organic chemicals.
According to the report, China is the primary source of daily necessities and industrial goods including mobile phones, laptops, components, solar cell modules, and ICs for India.
The introduction of the production-linked incentive program and an increase in customs duties on some electronic components are just two of the measures the government has taken to increase the domestic production of electronic goods.
HCL, Samsung, Dell, LG Electronics, Acer, Apple, Lenovo, and HP are a few of the top electronic brands available on the market.
Each year, India imports products worth 7-8 billion USD.
In 2022–2023, the nation imported laptops and personal computers worth $5.33 billion, compared to $7.37 billion in 2021–2022 imports.
In the most recent fiscal year, imports of specific data processing equipment totaled USD 553 million, compared to USD 583.8 million in 2021–2022.
Similar to this, imports of microcomputers/processors were USD 1.2 million in the most recent fiscal year compared to USD 2.08 million in 2021–2022.
