Simplified Import Authorization Procedure for Laptops, Tablets, and Computers from November 1

Simplified Import Authorization Procedure for Laptops, Tablets, and Computers from November 1

VoM News Desk | October 13, 2023 | 06:57 AM IST | Breaking News | Follow on Google News

Simplified Import Authorization Procedure for Laptops, Tablets, and Computers from November 1

Simplified Import Authorization Procedure for Laptops, Tablets, and Computers from November 1

Government sources suggest that, beginning November 1, a simplified import authorization procedure will be implemented for laptops, tablets, and computers instead of a licensing process. The move is intended to promote domestic manufacturing and reduce imports from countries like China. The Ministry of Electronics and Information Technology (MeitY) is expected to provide the final decision on this matter, as the IT hardware product industry falls under its purview, while the Directorate General of Foreign Trade (DGFT) is responsible for notifying import/export decisions.

A Soft Licensing Approach

The revised approach will be more akin to an import management system, with a soft licensing process issuing authorizations rather than stringent licenses. The entire process will be conducted online, making it simpler for companies to request imports. The company can apply for authorization to import a specified quantity, and once approved, they can proceed with their imports.

There may be a need for the DGFT to clarify its earlier notification, which initially introduced a licensing regime for these imports in August. The order issued in August initially imposed licensing requirements with immediate effect but later introduced amendments and provided a transition period until October 31. Import restrictions also apply to microcomputers, large/mainframe computers, and certain data processing machines.

Focus on Security and Domestic Manufacturing

The government introduced licensing requirements on imports to enhance security and stimulate domestic manufacturing of these products. The government also expressed a desire for IT products to originate from “trusted sources.”

India has been actively taking steps to reduce its dependency on China for day-to-day and industrial products like mobile phones, laptops, electronic components, solar cell modules, and integrated circuits. The production-linked incentive scheme and increased customs duties on electronic components are among the measures introduced to promote domestic manufacturing.

Key Electronic Brands in India

Prominent electronic brands in the Indian market include HCL, Samsung, Dell, LG Electronics, Acer, Apple, Lenovo, and HP. India imports around USD 7-8 billion worth of these goods each year.

India imported laptops worth USD 5.33 billion in 2022-23, a notable decrease from USD 7.37 billion in the previous fiscal year. Import of data processing machines was valued at USD 553 million in the last fiscal, compared to USD 583.8 million in 2021-22. Similarly, imports of microcomputers/processors amounted to USD 1.2 million in the last fiscal, down from USD 2.08 million in 2021-22.

Production Linked Incentive Scheme for IT Hardware

In May, the government approved the Production Linked Incentive Scheme 2.0 for IT Hardware with a budgetary outlay of Rs 17,000 crore. In February 2021, the government had previously approved the scheme for IT hardware, which covered the production of laptops, tablets, All-in-One PCs, and servers, with an outlay of Rs 7,350 crore. These measures are part of a broader strategy to boost domestic electronics manufacturing and reduce dependence on foreign imports.

VoM News Desk

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