US Raises Concerns Over India's Laptop Import Rules

New Delhi, Jan 12 (PTI) The US on Friday raised the issue of India's new import requirements for computers, tablets, and asked New Delhi to ensure that the current online system and related policies do not restrict trade in the sector.

The issue was flagged by US Trade Representative Katherine Tai during the 14th Trade Policy Forum (TPF) meeting here. It was co-chaired from the Indian side by Commerce and Industry Minister Piyush Goyal.

Goyal informed the US that the measure was taken on the ground of national security concerns.

"Ambassador Tai raised the issue of India's new import requirements for computers, tablets, and servers. Minister Goyal described India's objectives, including those related to national security concerns," according to the joint statement issued after the TPF meeting.

It also said Tai expressed willingness to collaborate with India on the shared objective of supply chain resilience in this sector.

"India conveyed its willingness to continue engaging on the issue with the United States and other interested stakeholders," the statement said, adding that the US side urged "India to ensure that the end-to-end online system currently in operation and related policies do not restrict trade going forward".

In October last year, the government tweaked curbs on imports of laptops and computers as it allowed importers to bring in shipments of IT hardware from overseas on a mere "authorisation" upon detailing quantity and value.

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.

Leading electronic brands that are sold in the market include HCL, Samsung, Dell, LG Electronics, Acer, Apple, Lenovo, and HP.

On August 3, 2023, the government announced import curbs and then suddenly deferred the decision on August 4, stating that the licensing regime will kick in from November 1, following concerns raised by the industry.

The importers are allowed to apply for multiple authorisations and those would be valid up to September 30, 2024. The authorisations will be issued for any number of consignments for imports till September.

After September, the government said it will study the data, interact with the industry, and then decide on ways to move forward.

In August 2023, the government imposed import restrictions on laptops, computers (including tablet computers), microcomputers, large or mainframe computers, and certain data processing machines.

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.

On November 1 last year, the government cleared 110 of the 111 applications, including those of Apple, Dell and Lenovo, that sought permission for imports of IT hardware products like laptops and computers worth nearly USD 10 billion, on the first day of implementation of the new system.