Hardware Industry Wants Computer Import Regulation Clarity

Nitin Konde, Apoorva Bajj

Aug 26, 2024 — 3 min read

Hardware Industry Wants Computer Import Regulation Clarity

Recently, representatives from the electronics hardware business penned a letter to the Ministry of Electronics and Information Technology (MeitY) requesting more information on the plans for future policies regarding the import of specific computer items under HS 8471. The letter also requested the Ministry to engage stakeholders more actively.

After local and international businesses voiced their worries, the government revised its limitations on laptop and computer imports in October 2023, following earlier restrictions enacted in August 2023. Importers could simply provide the quantity and value of the hardware they were importing, and the government would grant them "authorisation" to bring the goods in.

Last year, the government made an effort to collaborate with stakeholders in order to clarify administrative procedures and get ready for implementation, which we greatly appreciated.

Kumar Deep, country director of the ITI Council in India, wrote to MeitY Secretary S Krishnan that the strategy "addressed many stakeholder concerns about potential import licensing requirements and restrictions."

According to him, it is "critical" that the government takes action to facilitate early stakeholder participation in order to keep these commodities available in India as the probable expiration date of the registration/license draws near. This would help "to prevent far-reaching unintended consequences on key sectors."

Import Management System

Launched this year, the Import Management System (IMS) for information and communication technology (ICT) hardware imports is expected to conclude on September 30, 2024. With the new "import management system," the government hopes to keep tabs on computer, tablet, and laptop shipments into the nation without stifling supply in the market or instituting onerous licensing requirements. The administration had previously announced that importers could apply for several authorisations, each of which would be valid until September 30.

With computers penetrating every sector of the economy, the ITI Council argued in its letter that India's policy affects a wide range of interested parties, including domestic and international companies with operations in India.

Industry’s View

In order to facilitate the transition and minimise "unintended consequences," the industry group claimed that, first and foremost, it wanted the government to release future guidelines in draft form and give stakeholders enough time to comment on them before they are officially published, preferably before October 1.

The government should also give a fair amount of time for people to adjust if there is a change in policy. While deciding whether to revise or replace the IMS, ITI has urged the government to choose a course of action that satisfies India's goals, encourages foreign investment, and complies with international trade standards and commitments.

According to Deep, the Council and its members are quite worried about the rumours that the government is thinking about switching out the IMS for a quota system. This would have a negative impact on India and make it harder for many businesses to get access to the market.

A positive way ahead would be for the administration to take immediate, tangible steps towards making its objectives and planned policy roadmap more transparent and to increase stakeholder engagement in the policymaking process. In this regard, industry players are prepared to offer their assistance.