The Indian government has issued a new import policy that restricts the import of Laptops, Tablets, All-in-one Personal Computers, and Ultra small form factor Computers and Servers.
The new move is to boost local manufacturing, and might be challenging for companies like Dell, Acer, Samsung, LG, Apple Inc, Lenovo others who import these devices and sell them in India. Companies now need a license for importing these devices.
“The said Restriction shall not be applicable to Imports under Baggage Rules, as amended from time to time,” said the policy.
However, there is an exemption if the import licensing requirements is provided for 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 or courier by paying the necessary duty, said the government.
There is also an exemption if the import licence is provided for up to 20 such items per consignment for the purpose of R&D, Testing, Benchmarking and Evaluation, repair and re-export, Product Development purposes, the government clarified.
Given imports shall be allowed subject to condition that the imported goods shall be used for the stated purposes only and will not be sold. Further, after the intended purpose, the products would either be destroyed beyond use or re-exported, the government added.
Regarding re-import of goods repaired abroad, the government said that a licence for restricted imports shall not be required for repair and return of said items.
Finally, the notification said that Laptops, Tablets, All-in-one Personal Computers, and Ultra small form factor Computers and Servers which are an essential part of a Capital Good shall be exempted from the import licencing requirements.
Regarding this, Ali Akhtar Jafri, former director general of Manufacturers’ Association of Information Technology (MAIT), said:
In tandem with the PLI policy for IT Hardware, GoI has brought in licensing to push manufacturing in India. While the chip wars are being fought, the ‘volume business’ will need to recalibrate time to market and sourcing strategies to remain in the game. It’s not a nudge, it’s a PUSH.