Govt May Review Import Management System For Laptops In September

The government may likely review the import management system for laptops and digital devices around September, to evaluate electronics manufacturers’ readiness to either set up or expand their manufacturing presence in the country.

During the review, the Centre is expected to evaluate importers based on parameters, including the number of laptops imported since October 2023, the origin of these devices and their components, and whether they originated from trusted sources, ET reported, citing people close to the matter.

Speaking with ET, a senior government official said, “The idea also is to check whether these companies made any efforts towards setting up India manufacturing units.”

The government may consider relaxing some import criteria for laptops, tablets, and other IT hardware based on the progress made by individual companies.

“One of the biggest challenges for all companies is to set up PCB (printed circuit board) manufacturing in India, along with SMT (surface mount technology) lines. Once that is done, the percentage of domestic value addition to devices will improve significantly,” the report said.

It further added that while it takes time to set up or expand manufacturing units, but companies must show willingness to meet India’s needs and requirements.

On August 3, the Directorate General of Foreign Trade (DGFT) notified immediate restrictions on the import of laptops, tablets, and personal computers falling under the HSN 8741 category.

The move to impose restrictions on the import of IT hardware caused panic in the local industry, which comprises global electronics giants like Apple, Dell, HP, Lenovo, and ASUS. After pushback from the industry, the government extended the timeline to November 1, 2023.

Fearing supply chain disruptions, many IT hardware importers advanced procurement, which led to a 50% jump in IT hardware imports in August compared to July 2023, according to government data.

In November 2023, the government approved 110 out of the total 111 applications, including those from Apple, Dell, and Lenovo. These companies sought permission for imports of IT hardware products worth nearly $10 Bn on the first day of implementing the new system.

As per the new import management system, companies will be able to bring shipments into the country through mere authorisation, specifying quantity and value. The new platform has been envisioned to monitor shipments of IT hardware products without implementing a licensing regime or disrupting the market supply chain.