Govt defers implementation of restrictions on imports of laptops, PCs and tablets to Nov 1

The Directorate General of Foreign Trade (DGFT) on Friday announced that its decision to restrict the import of certain laptops and computers under HSN 8471 will come into effect from November 1, 2023.

After this set date by the government, no one will be allowed to import laptops, computers, and related items without a license.

DGFT in its notification stated, "Import consignments can be cleared till October 31, 2023, without a licence for restricted imports."



The notification further said that liberal transitional arrangements will be notified for the import of laptops, tablets, all-in-one personal computers, and servers till October 31.

Earlier, the government body had announced its decision to restrict the import of laptops, tablets, all-in-one personal computers and ultra-small form factor computers and servers without a license. These electronics can be imported only against a valid license meant for restricted imports.

"The said restriction shall not be applicable to Imports under Baggage Rules, as amended from time to time," stated the Ministry of Commerce and Industry.

The government's recent decision to restrict imports came with the aim to push Indian manufacturers to fill the gap, since electronics imports, including laptops, tablets, and personal computers, accounted for $19.7 billion between April and June 2023, expanding at a rate of roughly 6% each year.

India has been trying to push local manufacturing by giving production-linked incentives in over two dozen sectors, including electronics. It has extended the deadline for companies to apply for its $2 billion manufacturing incentive scheme to attract big-ticket investments in IT hardware manufacturing, which covers products like laptops, tablets, personal computers and servers.

The incentive scheme is key to India's ambitions to become a powerhouse in the global electronics supply chain, with the country targeting annual production worth $300 billion by 2026.

Dell, Acer, Samsung, LG Electronics, Apple Inc, Lenovo and HP Inc are some of the key companies selling laptops in the Indian market and a substantial portion are imported from countries such as China.

The intent seems to be "import substitution of certain goods that are imported heavily," said Madhavi Arora, an economist at Emkay Global.

(With agency inputs)