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IT hardware companies seek clarity on import licensing process

August 7, 2023
Reading Time: 2 minutes
IT hardware companies are discussing the process of importing licensing at the earliest to make contingency plans.
IT hardware companies are discussing the process of importing licensing at the earliest to make contingency plans.

NEW DELHI : The IT hardware industry wants the government to clarify operational modalities around import licensing at the earliest so that it can make contingency plans, said senior executives.

For instance, they said, currently there is no clarity on the criteria, details around quota, validity of licence, whether single or multiple licences are required for different ports, whether goods from special economic zones to domestic traffic area (DTA) and export-oriented units to DTA are exempt from import licensing, and on the nodal and grievance officers concerned.

The industry has welcomed the decision to defer the deadline to November 1 to implement the restrictions on imports of laptops, tablets, all-in-one-personal computers, ultra-small factor computers and servers. But it wants urgent clarity on the operational modalities at the earliest to be able to transition to the new regime.

“It’s a welcome step to give the extension but it needs to be seen if three months are enough or more time is required to put supply chains in order. We are waiting for clarity around operational details soon,” an executive of a leading IT hardware company said on condition of anonymity.

The industry also wants some items, such as high-end servers, laptops and other sophisticated devices, to be exempted from the restricted list since they are not manufactured in India. “If all the items are put in the restricted category, it will impact the consumers and businesses,” said a second executive, who did not wish to be identified.

Certain Items in Exempt Category
 “There are certain items that need to be exempted, a list of which can be shared with the government,” the executive said.

The import licence notification already has exemptions such as the import of one laptop, tablet, all-in-one personal computer or ultra-small form factor computer as personal baggage.

Also exempt will be the import of 20 IT devices per consignment for research and development, testing, benchmarking and evaluation. Imports for repair and re-export, and for product development purposes, re-import of goods repaired abroad and devices coming as essential parts of capital goods will also be exempt from a licence requirement.

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