With the import authorisation regime for laptops, tablets and computers set to expire in just a little over three months time, the Commerce Department is planning to ask the Ministry of Electronics and Information Technology (MeitY) for early suggestions on future policy based on the analysis of import data carried out by it, officials have said.
“Import regime for laptops and PCs is a sensitive matter as it involves the interests of several foreign players and trade partners. Now that a new government is in place we want to expedite a decision on the import policy that will be in place after September 30 2024,” an official tracking the matter told businessline.
As MeitY is the nodal ministry for IT hardware and it has been analysing import data of the seven regulated items over the past few months, the Commerce Department is getting in touch with it for its suggestions on the matter.
On October 1, 2023, the Directorate General of Foreign Trade (DGFT), under the Commerce Department, imposed import restrictions on laptops, tablets, PCs,ultra small form factor computers and servers, large or mainframe computers and automatic data processing machines from October 1 2023.
‘import management system’
The restrictions imposed under the new ‘import management system’ were not prohibitive as it allowed importers to import whatever quantities they wanted after applying to the DGFT for automatic import authorisations.
“Since the import authorisation system was put in place, there have been hardly any rejection of applications made for imports by various companies,” the official said.
However, the switch from the free import regime, where entities were free to import the seven items without going through any authorisation formalities, led to apprehensions expressed by many trade partners, including the US, at the WTO.
In its reply to queries at the WTO, India said the new import system was aimed at ensuring supply chain resilience and addressing national security concerns.
Sources in MeitY had earlier said that through the authorisation system India also intends to keep a check on imports from China in particular. Of the $8 billion worth of imports of the seven identified items into India in 2022-23, China accounted for $5 billion.
“In 2023-24, there are indications that there has been no fall in imports due to the restrictions. The disaggregated data on the numbers of traders, manufacturers and their sources of imports of finished goods and components is now available for analysis by MeitY,” the source said.
But importers, including US-based companies such as Dell, HP and Google, are eager to know what lies beyond September 30 2024. “There is an anxiety that things may get tougher. Whatever the new regime is, importers want to know in time so that they can prepare for it,” the official added.
