Govt imposes import curbs on laptops, computers for security reasons

The Centre on Thursday (August 3) imposed import restrictions on laptops, tablets, all-in-one personal computers, ultra-small form factor computers, and servers with immediate effect, citing security reasons and the need to promote domestic manufacturing.

The Directorate General of Foreign Trade (DGFT) in a notification said exemption from import licensing is provided up to 20 items per consignment for R&D, testing, benchmarking and evaluation, repair and return and product development purposes.

The move is expected to cut imports from countries like China and Korea.

“Import of laptops, tablets, all-in-one personal computers, and ultra-small form factor computers, servers…is Restricted with immediate effect,” it said.

Also read: Import restrictions imposed on certain gold jewellery and articles

Products under restrictions need licence or permission from the government.

The notification said that the restrictions will also be there on microcomputers, large or mainframe computers, and certain data processing machines.

It said, import of all these items would be allowed against a valid license. However, these curbs are not applicable to imports under baggage rules.

“Exemption from import licensing requirements is provided for import of 1 laptop, tablet, all in one personal computer, or ultra small form factor computer, including those purchased from e-commerce portals, through post or courier. Imports shall be subject to payment of duty as applicable,” it said.

It added that exceptions would also be there as these goods are an essential part of Capital Goods.

Safety first

A senior government official told PTI that there are a variety of reasons for imposing these restrictions but the primary is “to ensure that the security of our citizens is fully safeguarded”.

The official also said that internet penetration is increasing in the country in a bigger way and in this background Indian citizens need to have an environment and ecosystem, where they are not exposed to machines or instruments which might have security risks.

“Some of the hardwares could potentially have security related issues and could compromise sensitive and personal data, we have taken into account few of those goods,” he added.

The official said that “safety is the top most priority” of the government and the move is in compliance with the rules of the World Trade Organisation (WTO).

Under the transition provisions of the foreign trade policy (FTP), if the bill of lading and letter of credit has been issued or opened before August 3 that import consignments can be imported.

An importer can apply for a license from August 4. The trader should have to be a regular importer to get a license.

‘Key idea is to regulate not ban goods’

“The idea is not to ban imports but to regulate the inbound shipments of these goods,” the official said.

When asked if the move would have an impact on domestic prices, the official said “no”. However, industry experts have flagged apprehensions that it could lead to price rise of these instruments.

The restrictions are also there on micro-computers, large or mainframe computers, and certain data processing machines. Import of all these items would be allowed against a valid license.

It added that there is an exemption from seeking import licensing for up to 20 items per consignment for R&D, testing, benchmarking and evaluation, repair and return, and product development purposes.

These curbs are also not applicable to imports under baggage rules, under which one old and a new laptop is allowed in a baggage.

Over and above this, exemptions from import licensing requirements are also provided for import of one laptop, tablet, personal computer, or ultra-small form factor computer which are purchased from e-commerce portals, through post or courier.

However, these imports shall be subject to payment of duty as applicable, it said adding exceptions would also be there if these goods are used as an essential part of capital goods like a machine.

Key Chinese imports

According to a report by think-tank Global Trade Research Initiative (GTRI), India’s 65 per cent imports from China are limited to just three product groups — electronics, machinery and organic chemicals.

It has stated that India is critically dependent on China for day-to-day use and industrial products like mobile phones, laptops, components, solar cell modules, and ICs.

The government has taken several steps to boost domestic manufacturing of electronic items such as rolling out of the production-linked incentive scheme and increasing customs duties on the number of electronic components.

Leading electronic brands which are sold in the market include HCL, Samsung, Dell, LG Electronics, Acer, Apple, Lenovo and HP.

India imports about USD 7-8 billion worth of these goods every year.

The country has imported personal computers including laptops worth USD 5.33 billion in 2022-23, as against USD 7.37 billion in 2021-22. Imports of certain data processing machines stood at USD 553 million in the last fiscal, against USD 583.8 million in 2021-22.

Similarly, imports of micro-computers/processors stood at USD 1.2 million in the last fiscal against USD 2.08 million in 2021-22.

(With inputs from agencies)