Govt restricts imports of laptops, tablets to boost domestic manufacturing

The Directorate General of Foreign Trade (DGFT) on Thursday put under restricted category the import of laptops, tablets, personal computers, ultra small form factor computers and servers with “immediate effect”. This would mean traders will have to seek a licence from the government for such imports.

The DGFT clarified that airline passengers returning to India can still carry such items purchased abroad for personal use. “The said restriction shall not be applicable to imports under baggage rules, as amended from time,” it said.

Exemption will also be allowed for purchase of such items from e-commerce portals, through post or courier. “Imports shall be subject to payment of duty as applicable,” DGFT said.

“The move is expected to provide comfort to the investors and shield them from excessive imports of such electronic items. The measure has been taken at a time when India has already developed sufficient domestic capability,” said a government official.

India is seeking to establish itself as a major electronics manufacturer and has rolled out a production-linked incentive (PLI) scheme for Information Technology (IT) hardware to attract investors to boost domestic manufacturing of such items.

Exemption from the import-licensing norm will also be provided for up to 20 such items per consignment for the purpose of research and development, testing, benchmarking and evaluation, repair and re-export, product development purposes. “Import shall be allowed subject to condition that the imported goods shall be used for the stated purposes only and will not be sold. Further, after the intended purpose, the products would either be destroyed beyond use or re-exported,” said the DGFT notification.

If the items are an essential part of a capital good, licensing requirement will also not be applicable. “Exemption is further provided for re-import of such items repaired abroad,” it said.