Government expected to postpone import restrictions on laptops, tablets, and PCs until September 2024

 Government expected to postpone import restrictions on laptops, tablets, and PCs until September 2024

Manufacturers must currently enter their organization's information and import data for three years in an online import management system that the DGFT is building, sources said.

According to sources cited by Moneycontrol, the Indian government is expected to prolong the free import of laptops, tablets, and PCs till September 30, 2024.

The government is now constructing an online portal called Import Management System, where importers must register their business and import information. According to sources, the government will reassess the authorization requirements after September 30, 2024, and it would then gradually cut the finished product import quota.

On a case-by-case basis, the government can also take exemption from this quota into consideration. Additionally, it is anticipated that the government may release a standard operating procedure in this area.

Since the Union Commerce Ministry issued restrictions on the import of laptops, PCs, tablets, and other related devices on August 4, the industry has been pleading with the government for relaxations. 

The ministry had stated that in order to import PCs, laptops, tablets, and servers, computer makers would need to have a valid licence and pay duty.

This follows consultations with representatives of the laptop, PC, and tablet industries held by the Ministry of Electronics and Information Technology (MeitY) on August 22.

We appreciate the Indian government's thorough stakeholder consultations, and as was agreed upon today, we will await clarification from the DGFT and a written statement from the government. There are a number of unanswered questions, and we hope the government will solve them quickly, according to Kumar Deep Banerjee, country manager for trade group ITI Council, who spoke to Moneycontrol. The Manufacturers' Association for computer science has also been contacted by Moneycontrol for comments on the subject.

System for Import Management

Sources claim that the DGFT is developing the portal known as the "Import Management System," which will launch by the end of September. Three import product categories will be available on the portal: telecom, IT, and mobile.

Government officials anticipate importers to begin reporting their business information going back three years. It is suggested that the entire procedure be done online.

However, sources added, if a manufacturer imports components and produces completed goods in a SEZ or in a unit focused on exports, those activities won't be regarded as imports and won't be subject to the proposed method.

Government statements

The government wants to make sure that the supply chain for these products either originates in India or comes from reliable sources, which is why it has introduced these regulations.

Rajeev Chandrasekhar, the minister of state for electronics and information technology, stated the same to reporters earlier on August 22. He added, "At the moment, over 80% of our supplies to the digital ecosystem come from imports. We want to ensure that all of the sources are reliable.

"It goes without saying that the Indian component of that supply chain will need to expand in order to emphasise trust. We want India to supply 65-70 percent of our needs in the next three years, up from 8-10 percent today, the minister stated.

Hard drives, printers and cameras are in queue, too?

The government is apparently enacting import limits for hard drives, printers, and cameras in addition to laptops, PCs, and tablets.

These imports totaled over $10.08 billion in FY23. The country's current account deficit (CAD) increased to 2 percent of GDP in FY23 from 1.2 percent of GDP the previous fiscal year as India's total merchandise imports increased by 16.5 percent to $714 billion.