In a recent development, the Directorate General of Foreign Trade (DGFT) under the commerce ministry has clarified that there are no import restrictions on certain IT hardware products, specifically desktop computers. This clarification comes after concerns were raised by domestic and foreign firms regarding the imposition of restrictions on various IT hardware goods.
Previously, in August 2023, the government had imposed restrictions on certain IT hardware goods. However, after considering the concerns raised by industry players, in October last year, the government revised the curbs on imports of laptops and computers. It allowed importers to bring in shipments of these products from overseas with a simple ‘authorisation’ process, which required the importers to provide details of the quantity and value of the goods.
The latest circular from the DGFT states that the import restrictions imposed under the tariff head 8471 do not apply to desktop computers. However, laptops, tablets, all-in-one personal computers, ultra small form factor computers, and servers still require a valid import authorisation for imports to be allowed.
HS Code 8471, which encompasses products related to automatic data processing machines and units, includes items such as mice, printers, scanners, and CD drives. These products are subject to import restrictions.
The government’s decision to implement the import management system was aimed at effectively monitoring the import of laptops, tablets, and computers without creating a cumbersome licensing regime or disrupting the market supply. Importers can apply for multiple authorisations, and these authorisations will remain valid until September 30, 2024.
The clarification regarding desktop computers was issued in response to companies approaching the DGFT with concerns about their inability to import these products due to customs restrictions. It is important to note that desktop computers consist of separate CPU and monitor components, while all-in-one personal computers have an in-built CPU.
The DGFT’s circular aims to provide clarity to customs authorities, industry players, and importers about the specific products that are subject to import restrictions. By distinguishing between different IT hardware products, the government aims to facilitate smoother import processes and support the growth of the IT industry in the country.
Overall, the government’s decision to exempt desktop computers from import restrictions underlines its commitment to create a conducive environment for the IT sector. This move is expected to benefit both domestic and foreign firms involved in the import and distribution of desktop computers, further contributing to the growth of the industry.
