Government is likely to be extend the deadline of import authorisation scheme beyond December 31 for PCs and laptops which promotes domestically manufactured goods and reduces India’s dependency on China.
India extended the deadline for approving imports of servers, laptops, PCs, and tablets from September 30 to December 31.
The government first required import licenses for these items in August 2023, but subsequently relaxed the regulations to permit importers to obtain authorisation in its place.
Import authorisation scheme
In order to encourage domestic production of these goods, reduce reliance, particularly on China, and guarantee a reliable supply chain for electronics in the nation, the import management system went into effect on November 1, 2023. The government had previously stated last year that it would carefully review the import data before determining how to proceed.
The system includes servers, laptops, tablets, all-in-one PCs, and ultra-small form factor PCs.
Slow authorisation and cumbersome compliance
IT hardware manufacturers, who have been struggling with a number of compliance requirements, sluggish processing speeds, and other problems associated with the new authorization regime, are anticipated to benefit from the additional extension.
This comes after in October of last year the DGFT placed restrictions on the import of seven pieces of IT hardware, such as servers, PCs, and data processing devices. Due to opposition from industry participants, the Center eventually permitted businesses to import these goods, but only after requesting government approval.
Government abandoned license for import
The government declared in August of last year that it would grant licenses for the importation of IT hardware. However, India abandoned its original plan in November 2023 due to strong opposition from businesses, trade associations, and important trading partners, and a new ‘contactless’ import management system was implemented. This system uses an end-to-end online format to issue import permits.
