Government Notifies New Licencing Norms For Import Of Laptops, Tablets

India has unveiled the 'Import Management System' for inbound foreign shipments of laptops and tablets, among other electronic items, in a move that may help reduce the uncertainty faced by industry ever since import curbs were announced in August.

The Ministry of Commerce informed on Thursday that importers will now have to seek an 'Import Authorisation' for customs clearance, which will be issued in an end-to-end online format.

The import authorisation would have to specify the quantity and value of the imports and would be valid till Sept. 30, 2024, according to information shared by the ministry.

However, importers can apply for multiple authorisations and amend the quantities mentioned if the overall value of the import authorisation remains unchanged.

Previously, the Directorate General of Foreign Trade issued a notification on Aug. 3 changing the import policy of the above-mentioned products to ‘the'restricted’ category, citing concerns about India’s national security.

Subsequently, the policy was tweaked to allow a transition period till Oct. 31 to allow importers sufficient time to apply for licences.

The newly proposed import management system, which will be effective from Nov. 1 this year, will involve seven information and communication technology-harmonised codes, which are specific trade identification codes involving laptops, tablets, all-in-one personal computers, ultra-small form factor computers, and servers.

The ministry has informed us that a weekly video conference will be hosted by the DGFT every Tuesday at 10:30 a.m. to address issues and queries from stakeholders.

The government also notified certain exemptions to the import authorisation requirement.

When IT hardware is manufactured in a special economic zone for import into a domestic tariff area, then it would be exempt.

SEZ units, export-oriented units, electronic hardware technology parks, software technology parks or bio-technology parks will also not be required to obtain an authorisation for the import of the notified IT hardware.

"The given exemption is allowed only for the captive consumption of the concerned importing units," a policy circular clarified.

There would also be no import restrictions on spares, parts, assemblies, sub-assemblies, components, and other inputs necessary for the IT hardware devices.

If such IT hardware is an essential part of a capital good, then it would be exempted from the import authorisation requirements. This means that laptops/tablets accompanying machinery such as MRI machines, CNC machines, unmanned aerial vehicles, etc. would be examples of allowed exemptions. But if servers or laptops themselves are the primary capital goods, this exemption would not apply.

Other Exemptions

• Any import by private entities on behalf of the central and state government entities for defence and security purposes would be exempt.

• When the item is imported for purposes of repair/return/replacement of IT hardware that was sold earlier, or in the case of a re-import that was repaired abroad, it would be exempt.

• If 20 such items per consignment are imported for the purposes of R&D, testing, benchmarking, evaluation, and product development

• If the import is under baggage rules,

• If it is an import of one laptop, tablet, all-in-one personal computer, or ultra-small form factor computer, including those purchased from e-commerce portals through post/courier.