The Indian Government ban on imports is specific at a detailed level. This release provides specific references and details for background.
India bans imports of compute devices without a license. Make In India will be helped by this ban. Consumers and computer buyers may not be happy with higher prices and less choice. Dynamic India’s high-tech global businesses may see harms without access to the latest devices and servers.
Devices covered under the ban include:
Laptops,
Tablets,
Servers,
All-in-one desktops,
Ultra-small-form-factor computers, and
Large Scale/Mainframes
(Specific table at end of this release.)
This was done by modifying trade rules for HSN 8741 published, August 3, via Notification No. 23/2023, India’s Directorate General of Foreign Trade, amended August 10th to take effect November 1, 2023. The rules allow for issue of authorizing licenses, handling of repaired equipment, and exemptions for up to 20 devices per consignment for specific listed purposes (testing, R&D T&E, benchmarking, product development, etc.)
The Make In India initiative has multiple components including “National policy on electronics (NPE 2019). The vision of NPE 2019 is to position India as a global hub for Electronics System Design and Manufacturing (ESDM)”
The Production Linked Incentive was published by the Ministry of Electronics and Information Technology, IPHW Division, on May 29, 2023, as the “Production Linked Incentive Scheme - PLI 2.0 for IT Hardware”, W-17/9/2021-IPHW. The goals, over six years, are to reach Rs3.35T (~USD$40.48B) more production, Rs24.3B (~USD$293.64M) in additional investment, and incentivize 75000 jobs.
In this short series EkaLore will look at the likely results of the Indian Government ban policy.
For additional analysis and notes on a Dynamic India please see http://www.ekalore.com/india-business
Table of Harmonized Tariff Category Changes
All of these were free, now restricted.
ITC (HS Code) Item description 84713010 Personal computer
Subject to Policy condition no.4 of the Chapter 84 pf Schedule-I (Import Policy) of ITC (HS) 2022
ITC (HS Code) Item description 84713090 Other
Subject to Policy condition no.4 of the Chapter
ITC (HS Code) Item description 84714110 Micro computer
Subject to Policy condition no.4 of the Chapter
ITC (HS Code) Item description 84714120 Large or main frame computer
Subject to Policy condition no.4 of the Chapter
ITC (HS Code) Item description 84714190 Other
Subject to Policy condition no.4 of the Chapter
ITC (HS Code) Item description 84714900 Other automatic data processing machines; Other, presented in the form of systems
Subject to Policy condition no.4 of the Chapter
ITC (HS Code) Item description 84715000 Processing units other than those of subheading 8471.41 or 8471.49, whether or not containing in the same housing one or two of the following units: storage units, input units, output units
Subject to Policy condition no.4 of the Chapter
Notification No. 23/2023, India’s Directorate General of Foreign Trade, amended August 10th
Notes for Exemptions for specific cases
Each consignment is allowed one laptop, tablet, all-in-one PC, or ultra-small form factor PC without the need for an import license.
Under the Baggage Rules, which may be amended from time to time, this exemption also applies to laptops, tablets, and PCs purchased from e-commerce portals through post or courier, provided applicable duties are paid.
Laptops, tablets, all-in-one PCs, ultra-small form factor computers, and servers that are integral to a capital good will be exempted from import licensing requirements.
Up to 20 such items per consignment are exempted from the import licensing requirement for specific purposes like R&D, testing, benchmarking, evaluation, repair and re-export, and product development. However, it is essential to ensure that these imported goods are used solely for their intended purposes and not for resale. After fulfilling their designated functions, the products must either be destroyed or re-exported.
The government has extended the exemption from import licensing to items that are re-imported after being repaired abroad, simplifying the process for those goods.
Comments