IT hardware goods: Electronics hardware industry seeks clarification on policy for imports of computer products

IT hardware goods: Electronics hardware industry seeks clarification on policy for imports of computer products

The electronics hardware industry on Thursday wrote to the Ministry of Electronics and Information Technology (MeitY) to seek clarification related to the future policy plans for imports of some computer products in HS 8471 and urged the Ministry for increased stakeholder engagement.

Earlier in August 2023, the government imposed restrictions on certain IT hardware goods, and later after domestic and foreign firms flagged their concerns, in October 2023, the government tweaked curbs on imports of laptops and computers. It allowed importers to bring in shipments of this hardware from overseas on a mere ‘authorization’ upon detailing quantity and value.

“We welcomed the government’s efforts to work with stakeholders last year to prepare for implementation and to clarify administrative procedures. Further, this approach addressed many stakeholder concerns about potential import licensing requirements and restrictions,” ITI Council Country Director, India Kumar Deep said in the letter addressed to MeitY Secretary S Krishnan that has been reviewed by ET.

He said that as the potential end date of the registration/license approaches, it was “critical” that the government again took actions to enable early stakeholder engagement to ensure these goods remained available in India “to prevent far-reaching unintended consequences on key sectors.”

The Import Management System (IMS) for ICT hardware products which was launched last year is likely to end on September 30, 2024. As per the new ‘import management system’, the government aims to monitor shipments of laptops, tablets, and computers into the country without hurting the market supply or creating a cumbersome licensing regime. The government had said that the importers were allowed to apply for multiple authorizations and those authorizations would be valid up to September 30.

In its letter, the ITI Council said that as computers are used across all aspects of the economy, India’s policy has a profound impact on many stakeholders, including local and foreign firms doing business or manufacturing within the country.

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The industry body said that as a starting point, it sought that the government issues upcoming guidance in draft form and gives adequate opportunity to stakeholders to provide feedback on such guidance, before it is formally published and well in advance of the October 1 deadline to foster the transition and reduce ‘unintended consequences.'”In the event of a policy change, the government should also provide a reasonable transition time period. In reviewing whether the IMS needs to be updated or replaced, ITI continues to urge the government to select a path forward that meets India’s objectives while facilitating foreign investment and complying with international trade obligations and norms,” Deep added.

He said that the Council and its members were particularly concerned by reports indicating that the government was considering replacing the IMS with a quota system, which was likely to cause disruptions in India and unfairly block market access for many firms.

“Taking concrete actions now to clarify the government’s goals and proposed policy roadmap, and to boost transparency and stakeholder engagement in the policy process, would provide a constructive path forward. We stand ready to contribute to this process,” he said.

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