Import License for Laptops
Source: Deccan Herald
GS III: Economy
Overview
- News in Brief
- Import License for Laptops
Why in News?
The government had on August 3 announced that imports of laptops, tablets, all-in-one PCs and ultra-small form factor computers and servers would be allowed only against a valid licence for restricted imports.
News in Brief
- Companies such as Apple, HP, Lenovo, Dell, Asus and Xiaomi are looking to ship in as many laptops and tablets as possible to the country before import restrictions kick in on November 1.
- These firms will increase imports by up to 50% more than what they had initially planned till October end to ensure there is enough pipeline stock for 4-6 months when the new licensing regime for imports of laptops, tablets, and personal computers begins.
Import License for Laptops
- Companies/traders can import IT Hardware like Laptops, Tablets, All-in-one Personal Computers, and Ultra small form factor Computers and Servers (IT devices) after obtaining a licence.
- There is no ban on imports.
- For a smooth transition under the new notification, the Directorate General of Foreign Trade (DGFT) has prepared a portal, and companies/traders can apply online for a license.
The DGFT comes under the Ministry of Commerce and Industry and is responsible for administering laws regarding foreign trade, including import regulations.
- It is expected that DGFT will issue a licence within 1-2 days, if details are filled in properly.
- The ministry will also extend all support to the industry for clearance of shipments in transit, if any.
- Importer-exporter code (IEC), a unique 10-digit code issued by the DGFT is mandatory for the license.
Photo by Marvin Meyer on Unsplash - Validity of license
- 24 months for capital goods
- 18 months for raw materials components, consumables and spare
- License term is renewable
- Types of licenses
- Open general license (OGL) – Allows importers to bring in certain goods without the need for individual licences.
- Restricted or specific license – Issued for goods that must be monitored due to trade agreements, international obligations, or to protect domestic industries, computers and laptops will likely fall into this category.
Need for Import License
electronics imports, including laptops, tablets, and personal computers, accounted for $19.7 billion between April and June 2023, expanding at a rate of roughly 6% each year.
- To reduce reliance on foreign markets and to make India a global manufacturing hub.
- Also to boost Make in India thrust and more specifically in those sectors identified for the Production-Linked Incentive (PLI) scheme.
- India hopes to produce $300 billion in electronics annually by 2026.
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