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Clarifications by DGFT and MEITY on the import licence for laptops, computers, servers etc.
Clarifications by DGFT and MEITY on the import licence for laptops, computers, servers etc.

September 27, 2023

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On September 25, 2023, nasscom participated in the consultation meeting organised by the Directorate General of Foreign Trade (DGFT), Ministry of Commerce and Industry and the Ministry of Electronics and Information Technology (MEITY) on the next steps for the implementation of the import licence requirement for laptops, computers, servers etc. DGFT and MEITY have clarified that no restriction on the number/value of items that can be imported is being imposed as of now.

This was in reference to the DGFT Notification No.23/2023 dated August 3, 2023, regarding amendment in Import Policy of Items under HSN Code 8471 wherein imports of Laptops, Tablets, all-in-one personal computers, ultra small form factor computers and servers (covered items) are brought under the ‘restricted’ category which could earlier be imported freely.

DGFT and MEITY have given clarity on many of the queries raised by nasscom:

  1. Units in the Special Economic Zones (SEZ) and Software Technology Parks of India (STPI) do not require a separate import licence for covered items.

  2. Import into Domestic Tariff Area (DTA) from SEZ will require an import licence.

  3. Regarding the applicability of exemption to covered items that are an ‘essential part of a capital good’, it has been clarified that exemption is available when the covered item would be used as part of another capital good. If such covered item is imported separately, then it may be notified to the customs officials that such covered item is a part of another capital good, and the linkage may be established through available documents.

  4. The turnaround time for granting an import licence is expected to be within 24-72 hours.

  5. The system to share import licence with customs authorities is being developed. Once it is implemented, an import licence will be electronically shared with customs authorities, and therefore there will be no need to obtain port-wise authorisations.

  6. The import licence application is not expected to be rejected for reasons other than deficiency in the application.

DGFT and MEITY noted our request to publish the clarifications as FAQs for the benefit of the wider industry.

Additionally, the following has been clarified on the manner of applying for the import licence requirement:

  1. The import licence can be applied via the existing DGFT portal for import licence application. It can be accessed under the ‘Import Management System’ option available on the DGFT’s website. This portal is live and the industry can start applying for import licences immediately.

  2. The import licence must be applied for by the entity filing the Bill of Entry at the customs and must log-in to the import management system using their Importer-Exporter Code.

  3. The entire licencing process will be end-to-end digitised and completely paperless.

  4. No restriction on the number/value of covered items to be imported is being imposed as of now.

  5. Details regarding the make, model number, year of manufacture etc. of the covered items to be imported are not a mandatory requirement.

  6. The import licence will be valid for a period of one year.

  7. A single import licence can be applied for multiple restricted items. The application form has the option to add multiple line items.

  8. There is no need to bifurcate details of covered items on the basis of make and model. For example, all ‘laptops’ can be clubbed as one line item, all ‘tablets’ can be clubbed as one line item etc.

  9. The licence fee is as per the current policy, i.e., 1 Re/1000rs of import value, subject to a maximum of 1 lakh Rs.

  10. Import licence needs to be applied for captive consumption as well as trading of covered items.

 

In response to industry’s queries, DGFT and MEITY will consult internally and come back with clarity on the following:

  1. Whether parts or unfinished goods imported under any of the notified hs-codes require an import licence.

  2. Whether both, quantity and value, must be specified in the import licence application.

DGFT and MEITY are expected to publish FAQs for the implementation of the import licence requirement, for easy compliance by the industry.

 

For more information, kindly write to garima@nasscom.in and tejasvi@nasscom.in with a copy to policy@nasscom.in.


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Garima Prakash
Manager, Public Policy and Government Affairs

Reach out to me for all things policy about e-commerce, international trade, export controls, start-ups and fintech

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