What are the newly imposed restrictions on personal laptop/ computer imports? Why is the move taken?

What are the newly imposed restrictions on personal laptop/ computer imports? Why is the move taken? Let's understand.

Astha Pasricha
Aug 4, 2023, 15:34 IST
Laptop and computer import ban in India
Laptop and computer import ban in India

New restrictions on imports of personal laptops, computers, and palmtops have been imposed with immediate effect in India. On Thursday, i.e. August 3, a notification was released. The Directorate General of Foreign Trade stated that imports of computers, along with several other items falling under the seven categories of HSN code 8471 have actually been restricted. However, there will be no restrictions applied to imports under the baggage rules.

The objective is to encourage domestic manufacturing of such products that cease the majority share of imports of such items from China. Therefore, the imports of personal computers and laptops have been put on a halt.

The notification

According to the notification, all-in-one personal computers, laptops, ultra-small form factor, tablets, and servers that fall under HSN 8741 are to be "restricted". Their import would be permitted against a valid license applicable for the purpose of restricted imports.

Interestingly, exemption from import licensing needs has been applied for import in the case of one tablet, laptop, ultra-small form factor computer, or all-in-one personal computer. This also includes the ones bought from e-commerce portals via courier or post. Imports will also come with payment of duty as applicable.

Exemptions have also been applied on tablets, ultra-small form factor computers, all-in-one personal computers, and laptops for import licensing needs in case they are an important part of capital goods.

For R&D testing and evaluation repair, exemption from import license for the imports of up to 20 goods per consignment is provided by the government. However, this exemption is contingent on the fact that such imports will be permitted not for sale but only for utilization as per the mentioned purpose. “Further, after the intended purpose, the products would either be destroyed beyond use or re-exported,” said the notification.

The notification also stated that no license for restricted imports shall be needed in case of repair and return of re-import of commodities that are repaired abroad, according to the Foreign Trade Policy.

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The reason behind the restrictions

The restrictions are viewed as a direct strengthening of the recently revamped production-linked incentive (PLI) scheme by the Centre for IT Hardware. As per a senior government official, this very measure boosts firms to manufacture as per the demand locally in India, as the nation is moving towards strengthening its domestic production in this sector.

It was in the month of May that the scheme was revised with an expenditure of Rs 17,000 crore. This amount is more than double the budget of the same scheme passed in the year 2021. This boosts the manufacturers of servers, personal computers, and laptops to manufacture more, in a situation where a significant chunk of imports of these segments are actually from China.

Astha Pasricha
Astha Pasricha

Content Writer

    Astha Pasricha is a content writing professional with experience in writing rich and engaging content for websites, blogs, and chatbots. She is a graduate of Journalism and Mass Communication and English Honors. She has previously worked with organizations like Groomefy, Shiksha.com, Upside Me, EGlobal Soft Solutions and Codeflies Technologies Pvt. Ltd. At Jagran Josh, she writes content for the General Knowledge section. You can reach her at astha.pasricha@jagrannewmedia.com.
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