IT Hardware Players Seek Clarity On Import Authorisation Norms

SUMMARY

With the new import authorisation mechanism set to come into force from October this year, the IT hardware industry has reportedly sought clarity around applicability of manufacturing quotas

Clarifications around criteria and import quantities of products whether to be allowed under the new import authorisation rules, were sought in a recent meeting with MeitY officials

The government has asked these companies to submit their manufacturing plans at the earliest for products such as laptops, tablets, all-in-one PCs and servers, etc

With the new import authorisation mechanism set to come into force from October this year, the IT hardware industry has reportedly sought clarity around applicability of manufacturing quotas.

As per ET’s report, the clarifications around criteria and import quantities of products like laptops and tablets whether to be allowed under the new import authorisation rules, were sought in a recent meeting with the Ministry of Electronics and IT (MeitY) officials.

“The industry players wanted to understand what will happen after October 1, when the new system kicks-in. They need clarity so that they can plan accordingly. We have taken their questions and will revert soon,” an official was quoted as saying by the report.

The report also said that the government has asked these companies to submit their manufacturing plans at the earliest for products such as laptops, tablets, all-in-one PCs and servers, etc.

Last November, the government initially gave its nod to 27 global IT firms, including Dell, HP India and Lenovo, to manufacture hardware components in India. Apart from these, major IT hardware manufacturers in India include Foxconn, Acer, Asus and Dixon Technologies.

Based on the news report, under the new system, companies manufacturing in India will be given leeway in importing IT hardware, whereas those that do not want to manufacture locally will be given quotas to restrict import quantity.

Import authorisation would be given to firms based on three parameters — import value of previous year or an average of past three years for IT products, domestic manufacturing of IT hardware devices and exports of electronics goods, the report added the official’s statement.

This development comes months after a majority of manufacturers who were eligible under the revised production-linked incentive scheme for IT hardware are expected to commence production this year.

Meanwhile, Taiwanese tech giant Acer is looking to further ramp up its manufacturing in India, in May. Acer India’s chief business officer Sudhir Goel told Inc42 that Acer India plans to “significantly” scale up the number of stock keeping units (SKUs) manufactured in India to about 70-75% from 60% currently.