Govt Easing Plans To Restrict Imports of Laptops, Tablets; Gives More Time To Companies, Says Report

The government is loosening its planned restrictions on imports of laptops, tablets and other IT hardware, according to a Bloomberg report quoting people familiar with the policy. The move will give tech majors such as Apple, HP and Dell more time to prepare for potential curbs.

Last month, in order to promote domestic manufacturing, the government had imposed import restrictions on laptops, tablets, all-in-one personal computers, ultra-small form factor computers, and servers with immediate effect. However, later, it decided to push the timeline for restricting laptop and PC imports to give companies a transition period.

According to the Bloomberg report quoting sources, India is doing away with a compulsory licensing requirement for tech importers, and will instead only ask such companies to register under its so-called import management system. The system will start operating on November 1.

India is seeking to boost local production while trying to ensure sufficient availability of consumer electronics. The government last month shocked companies such as Apple and Samsung Electronics, as it announced a plan to curb laptop and tablet imports without a suddenly required license.

As part of the latest plan, all companies bringing everything from tablets and laptops to desktop computers and servers into India will have to register. But unlike under the previously considered licensing regime, where companies were expected to cut back imports immediately, the new rules will not limit inbound shipments for about six to nine months, according to the report.

A quota on imports could gradually kick in as companies begin to manufacture laptops, tablets and other hardware locally. The size of each company’s quota will depend on its local production, import of IT hardware as well as export of such products from India, the people said.

The planned new rules do not apply to smartphones.