The Indian government has unveiled a new import management system that aims to facilitate the importation of laptops, personal computers (PCs), and tablets. The system, devised after these items were placed on the restricted list, allows shipments to be approved in minutes through an online mechanism. The government hopes that this move will encourage global giants to manufacture in India while addressing the issue of cybersecurity.
The new system does not impose any limits on the value or quantity of imports. Each company is permitted to seek shipments from up to 10 countries using a single license, except for entities on the denied entry list due to non-compliance with export obligations or being red-flagged by the Directorate of Revenue Intelligence (DRI). It is worth noting that no company is currently on the denied entry list.
Although there is no restriction on imports from any specific country, the decision is expected to have a significant impact on imports from China. Nearly 60% of the seven products covered by the import management system, including PCs, laptops, tablets, servers, microcomputers, large or mainframe computers, and certain data processing machines, are imported from China.
The move to allow quick approvals for laptop and PC imports is seen as part of the Indian government’s wider crackdown on Chinese goods, which has gained momentum after the intrusion into Ladakh. Additionally, the government has been actively promoting domestic production of electronics and select items to reduce the country’s reliance on imports.
The introduction of import checks for laptops and PCs was initially postponed due to security reasons, following a recommendation by the Ministry of IT and Electronics. However, the government has emphasized that the checks are not intended to impose unnecessary restrictions and inconvenience on importers. Instead, the checks are referred to as authorization, while the restricted list remains in place.
To promote domestic manufacturing of electronic hardware, certain tweaks have been made to the system. IT hardware manufactured in Special Economic Zones (SEZs) and shipped to the domestic tariff area or non-SEZ areas will not require authorization. Importation by private companies for government agencies is also exempted from the authorization requirement.
Importers are allowed to apply for multiple authorizations, which will remain valid until September 2024. After that, the government will evaluate the data and engage with industry stakeholders to determine the way forward.
The Indian government aims to provide certainty and stability to importers in the coming year and will make further decisions based on data analysis and stakeholder consultations.
