Much to the joy of the industry, the Indian government recently rolled back restrictions it had earlier imposed on the import of laptops, personal computers, and tablets, and manufacturers can continue to freely bring in such items till September 30, 2024. For now, the government has only imposed an additional requirement of registering the import details on a platform launched by the Directorate General of Foreign Trade (DGFT).
Let's take a look at how this whole issue started, and its seeming resolution — for the time being.
What triggered the restriction on the import of laptops, tablets, and PCs?
On August 3, the Ministry of Commerce announced restrictions on the import of such items, including ultra-small form factor computers, and servers. The DGFT, the concerned body under the ministry which looks after import and export regulations, said in a notification that the import of such items will be permitted against a licence.
Why did the government bring in such norms?
Minister of State for Electronics and IT, Rajeev Chandrasekhar, said such regulations were required to ensure that "trusted and verifiable" hardware and systems reach the Indian tech ecosystem, and to "reduce import dependence and increase domestic manufacturing of this category of products."
"As part of emphasising trust, it is obvious that the Indian component of the supply chain will have to grow. Today, 8-10 percent of our supply requirement comes from India, we want to make that 65-70 per cent in the next three years,” the minister said.
What was the repercussion of the restriction?
Although laptop makers had been bracing for similar measures aimed at boosting local production, the sudden licensing requirement caught the industry by surprise. They were by then gearing up for the peak festive season in India (October-November).
The immediate repercussion of this development was that Apple, Samsung, HP, and other major laptop and PC makers froze their imports to India. The government then stayed the implementation of the union commerce ministry's curbs till October 31.
Concerns regarding this restriction was also raised at a meeting of the WTO Committee on Market Access, held on October 16 in Geneva.
What did the industry demand from the government?
Industry bodies such as the Manufacturers' Association for Information Technology (MAIT), whose members include manufacturers such as Dell, HP, Apple, Lenovo, and Asus, requested the government for at least six months for implementing the licensing norms.
How did the government respond?
On August 22, the government, in a meeting with the industry, relayed to the latter that it would extend the unrestricted import of laptops, tablets, and computers till September 30, 2024. For now, as Moneycontrol had reported, importers simply have to register their organisation and import data in an online portal called the Import Management System.
Post September 30, 2024, sources said that the government will review the authorisation norms, and it may take a call on whether to reduce the import quota of finished products in a graded manner.
What is the import management system?
Importers have to feed in their organisation and import data for the past three years in the import management system. The portal has three categories of imports — mobile, IT, and telecom products.
"With this system in place, we'll have clear data on specific products coming from different sources, and monitor it in consultation with the stakeholders," DGFT director general Santosh Kumar Sarangi had said earlier.
On duly applying for authorisation on the online import management system, the turnaround time for granting an import authorisation is expected to be within 24-72 hours. The authorisation fee is between Rs 1,000 and Rs 1 lakh.
When did the new authorisation regime kick in?
The new import management system took effect from November 1. However, the portal was live from October 1, and industry players had started applying for such authorisations.
Also read: Import authorisation norms will not lead to laptop, tablet and PC price rise: MeitY secretary
Has the government cleared any such import authorisation applications?
The government has cleared about 110 of the 111 applications received for the import of laptops, computers, and other IT hardware products, an official said. The companies that have received approvals include Dell International Services India, Apple India, HP India Sales Pvt Ltd, Lenovo (India), ASUS India, IBM India, Samsung India Electronics, Xiaomi Technology India, Cisco Commerce India, Siemens Ltd, and Bosch Ltd, the official said.
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