In a move to calm industry nerves, the Indian government has eased restrictions on the import of laptops, tablets, and PCs. Under the revised mechanism, the government has approved a portal on the Directorate General of Foreign Trade (DGFT) website to facilitate Import Authorisations. Importers will be required to disclose information regarding the source, quantity, and value of their imports, with the flexibility to apply for multiple authorisations.

The Ministry of Electronics and Information Technology (MEITY) Secretary, in a media statement, clarified that once import authorisation has been obtained from the DGFT portal, there will be no further restrictions on importers. These import authorizations will remain valid until September 30, 2024.

These relaxations follow industry concerns raised after a DGFT notification on August 3, which categorized laptops, tablets, and PCs as restricted items. According to the notification, importers of these products were mandated to obtain valid licenses for restricted imports. However, within 24 hours, the DGFT issued another notification on August 4, postponing the implementation of the licensing regime until October 31.

Director General of Foreign Trade (DGFT) Santosh Kumar Saranagi emphasized that the process of obtaining Import Authorisations through the portal is both faceless and contactless. He assured that this revised mechanism was not a licensing regime and that import authorizations would be granted in less than 10 minutes after application. He also pledged that the government would engage with the industry on a weekly basis to ensure a smooth transition.

When questioned about the possibility of new restrictions after September 30, 2024, the MEITY Secretary clarified that any such measures would only be considered following a review of the import data collected under the new scheme. Notably, he emphasized that the new mechanism is compliant with WTO regulations and affirmed India's commitment to safeguarding the security of digital systems, responding to concerns raised by the US, China, South Korea, and Taiwan at the WTO.

The MEITY Secretary further stressed that the intention is not to impose unnecessary restrictions on any stakeholders and expressed the growing concern for the security of the digital ecosystem. He expressed optimism that these changes would encourage electronics manufacturing in India, stating that the electronics sector is poised to become the largest manufacturing sector in the country, and India should establish a significant presence in this industry.

Pankaj Mohindroo, Chairman, ICEA, emphasized the importance of such policy adjustments in facilitating India's journey towards becoming a self-reliant and globally competitive electronics manufacturing hub.

“We continue to engage with the government to crystallise import norms that will draw a balance between increasing domestic production, consumer interest and avoid disruption of global supply chains. The industry is now working with DGFT to ensure a smooth transition from the current process to the Import Management System from November 01, 2023." Mohindroo said.