Ensure laptop import policies do not restrict trade: US tells India

United States (US) Trade Representative Ambassador Katherine Tai urged India to ensure that the end-to-end online system currently in operation and related policies on the import of laptops do not restrict trade going forward, according to an official joint statement released on January 12.

Tai made these remarks during the 14th Ministerial-level meeting of the India-United States Trade Policy Forum (TPF), which was held in New Delhi on January 12. Minister of Commerce and Industry, India Piyush Goyal and US Trade Representative Tai co-chaired the TPF meeting

In the meeting, Ambassador Tai raised the issue of India’s new import requirements for computers, tablets and servers. In response, Goyal described the country's objectives behind implementing these policies, including those related to national security concerns.

"Ambassador Tai expressed a willingness to collaborate with India on the shared objective of supply chain resilience in this sector. India conveyed its willingness to continue engaging on this issue with the US and other interested stakeholders," according to the statement.

The statement added that the Ambassador did welcome India's move to implement the “import management system for specified IT hardware” in a facilitative manner, which has so far minimised the impact on trade.

Back in October 2023, the Indian government announced an ‘import management system’ for IT hardware, including laptops and computers. Under this management system, IT hardware companies will need to register and disclose data related to their imports, as well as countries from which they import, among other things. This came as a relief to the industry which feared that the previous licensing notification could restrict imports.

Also read: Centre, stakeholders discuss 2 new standards for import of laptops, tablets

The import management system currently in operation is seen as a step down from the government's earlier stance of imposing a licensing regime.

On August 3, 2023, the Centre announced that it would restrict the import of laptops, tablets, personal computers, ultra-small form factor computers, and servers with immediate effect. While exemptions were provided, the free import of these goods would be permitted only against a licence.

Also read: Relief with riders: Govt likely to defer import curbs on laptop, tablet, PCs till Sept 2024

Such a regime was said to particularly hurt global tech giants like Dell, Acer, Samsung, Panasonic, Apple, Lenovo and HP.

However, an outcry followed and just a day later on August 4, 2023, the Centre decided to delay the implementation of these curbs by three months. But in early October, the Union government clarified that it would only put in place an end-to-end online system before October 30, 2023, a watered-down structure compared to the initial plan.