110 get nod for IT hardware import

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The government has cleared 110 of the total 111 applications, including those of Apple, Dell and Lenovo, that sought permission for imports of IT hardware products like laptops and computers on the first day of implementation of the new system, an official said.

Other companies that received import approvals include HP India Sales Pvt Ltd, ASUS India, IBM India, Samsung India Electronics, Xiaomi Technology India, Cisco Commerce India, Microsoft Corporation (India), Siemens Ltd, Bosch Ltd, Redington Ltd, Ingram Micro India, and Oracle India, the official said.

“Around 110 import authorisations have been issued till date. All major IT hardware companies have already availed authorisations. All applications received are being disposed of within the time stipulated. There is no pendency as on date,” the official said.

Only the application of a Hyderabad-based vendor was rejected as that firm was on the denied entity list. The Directorate General of Foreign Trade held a detailed consultations with stakeholders on October 31, in which officials explained the process of following the new system for seeking authorisations smoothly.

After concerns being raised by the industry on imposing licensing regime on these imports, the government last month diluted the norms on these imports, allowing importers to bring in shipments of IT hardware from overseas on a mere ‘authorisation’ upon detailing quantity and value.

The new licence regime is applicable to laptops, personal computers (including tablet computers), microcomputers, large or mainframe computers, and certain data processing machines to ensure India’s trusted supply chain. The new ‘import management system’ is aimed at monitoring shipments of laptops, tablets and computers into the country without hurting market supply or creating a cumbersome licensing regime.

Clerance of almost all the applications reflect that authorisation seekers are not facing any hassles, the official said. Companies on the “denied entity list” will not get the authorisations. Such lists include firms which have not fulfilled or defaulted export obligations by availing benefits of schemes like advance authorisation and Export Promotion Capital Goods (EPCG), or those having DRI (Directorate of Revenue Intelligence) cases against them. Companies willing to import second-hand goods or refurbished items would also not be allowed to apply for this authorisation as for those imports, the standard operating procedure is different.

The new mechanism was launched after holding an extensive consultation with the industry. The import authorisation will remain valid till September 2024. India imported these goods worth USD 8.7 billion in 2022-23 against USD 10.3 billion in 2021-22 and USD 7.1 billion in 2020-21. The country has imported personal computers, including laptops, worth USD 5.33 billion in 2022-23 compared to USD 7.37 billion in 2021-22. The main countries from where these goods were imported in the last fiscal include China (USD 5.11 billion), Singapore (USD 1.4 billion), Hong Kong (USD 807 million), the US (USD 344.7 million), Malaysia (USD 324.8 million), Taiwan (USD 272.5 million), Netherland (USD 132.8 million) and Vietnam (USD 126 million).