Govt extends import approval system for laptops, tablets till Dec 31

The government on Tuesday extended the existing approval system for import of certain IT hardware products, including laptops and tablets, for three months till December 31.

The deadline for review of the system is September 30.

These imports stood at USD 8.4 billion in 2023-24 against the authorisation of about USD 9.5 billion. Most of these imports were coming from China.

"It is clarified that the importers are allowed to apply for import authorisations which will be valid up to December 31, 2024. Further, the existing import authorisations issued till September 30, 2024, will continue to be valid up to December 31, 2024," the directorate general of foreign trade (DGFT) said in a policy circular.

Importers would be required to apply for fresh authorisations from January 1, 2025, "subject to detailed guidance to be provided shortly", it added.

On August 3, 2023, the government first imposed import restrictions on laptops, tablets, all-in-one personal computers, ultra-small form factor computers, and servers.

After the industry flagged concerns over the curbs, the government in October last year rolled out an import management/ authorisation for imports of these products.

The system is aimed at monitoring inbound shipments of these items into the country without hurting market supply.

The importers are allowed to apply for multiple authorisations and those authorisations would be valid up to September 30, 2024. The authorisations will be issued for any number of consignments for imports till September.

On November 1, 2023, the government cleared over 100 applications, including those of Apple , Dell and Lenovo, which sought permission for imports of these IT hardware products worth nearly USD 10 billion, on the first day of implementation of the new system.

The new licence regime is applicable to laptops, personal computers (including tablet computers), microcomputers, large or mainframe computers, and certain data processing machines to ensure India's trusted supply chain.

The country has imported personal computers, including laptops, worth USD 5.33 billion in 2022-23 compared to USD 7.37 billion in 2021-22.

Commenting on the development, think tank GTRI said that India's repeated delay in implementing laptop import restrictions, likely influenced by US concerns, needs to end.

"It's time for India to enforce these measures and boost local production. Such restrictions would push American tech giants like Apple , Dell, and HP, which manufacture in China, to set up operations in India," Global Trade Research Initiative (GTRI) founder Ajay Srivastava said.

India has a strong case for building its own laptop manufacturing capabilities, he said, adding that China controls 81 per cent of the global PC and laptop market, and any disruption there could have global repercussions.