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Govt Imposes Import Restrictions On Laptops, Tablets, Computers

Zaheer Hussain
August 4, 2023
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With immediate effect, India has restricted the Import Restrictions of personal computers, laptops, palmtops, automatic data processing machines, microcomputers/processors, and large/mainframe computers. Imports of computers and other items within the seven categories of HSN code 8471 have been restricted, according to the Directorate General of Foreign Trade, however this restriction will not apply to imports under the Baggage Rules. Imports of laptops and personal computers have been restricted in order to promote domestic manufacturing and reduce the majority share of these items’ imports from China.

Govt Imposes Import Restrictions On Laptops, Tablets, Computers

Import Restrictions: Why In The News?

India Has Restricted Imports Of Personal Computers, Laptops, Palmtops, Automatic Data Processing Machines, Microcomputers/Processors And Large/Mainframe Computers With Immediate Effect.
The Directorate General Of Foreign Trade Said Imports Of Computers And Other Items Under The Seven Categories Of HSN Code 8471 Have Been Restricted, But The Restriction Will Not Be Applicable To Imports Under The Baggage Rules.
With An Aim To Promote Domestic Manufacturing Of These Products And Curtail The Majority Share Of Imports Of These Items From China, The Imports Of Laptops And Personal Computers Have Been Restricted.

Import Restrictions: What Does The Notification Actually Say?

Import Of Laptops, Tablets, All-in-one Personal Computers, And ‘Ultra Small Form Factor’ Computers And Servers Falling Under HSN 8741 Will Be ‘Restricted’ And Their Import Would Be Allowed Against A Valid Licence For Restricted Imports.
Exemption From Import Licensing Requirements Has Been Given For Import Of One Laptop, Tablet, All-in-one Personal Computer Or Ultra Small Form Factor Computer, Including Those Purchased From E-commerce Portals Through Post Or Courier. Imports Will Attract Payment Of Duty As Applicable.
For The Purpose Of R&D (Research And Development), Testing, Benchmarking And Evaluation Repair And Re-export, And Product Development Purposes, The Government Has Given Exemption From Import Licence For Imports Up To 20 Items Per Consignment.
Exemption Has Been Provided If It Is Part Of Essential Part Of Capital Goods. Also, If Repair And Return Of Re-import Of Goods Repaired Abroad As Per The Foreign Trade Policy.

Import Restrictions

Import Restrictions: Why Have The Restrictions Been Imposed?

The Move Is Being Seen As A Direct Boost To The Centre’s Recently Renewed Production-Linked Incentive (PLI) Scheme For IT Hardware. The Measure Is To Push Companies To Manufacture Locally In India, As The Country Looks To Strengthen Its Domestic Production Prowess In The Electronics Sector.
The Scheme Was Revised In May With An Outlay Of Rs 17,000 Crore, More Than Doubling The Budget For The Scheme That Was First Cleared In 2021. The Push Is Aimed At Makers Of Laptops, Servers And Personal Computers Among Others – Since Most Of The Imports In These Segments Are From China.
India Has Seen An Increase In Imports Of Electronic Goods And Laptops/Computers In The Last Few Years. During April – June This Year, The Import Of Electronic Goods Increased To $6.96 Billion From $4.73 Billion In The Year-ago Period, With A Share Of 4-7 Per Cent In Overall Imports.
On An Annual Basis, India’s Imports Of Personal Computers, And Laptops From China Dropped 23.1 Per Cent In 2022-23 To $4.10 Billion In 2022-23 From $5.34 Billion In 2021-22.
However, In The Previous Two Financial Years, 2021-22 And 2020-21, There Was A Sharp Surge In Imports Of Personal Computers, Laptops In 2021-22 And 2020-21 From China, With A Year-on-year Increase Of 51.5 Per Cent To $5.34 Billion In 2021-22 And 44.7 Per Cent To $3.52 Billion In 2020-21.

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