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UPDATES BY DGFT ON THE IMPORT LICENCE FOR LAPTOPS, COMPUTERS, SERVERS ETC.
UPDATES BY DGFT ON THE IMPORT LICENCE FOR LAPTOPS, COMPUTERS, SERVERS ETC.

October 19, 2023

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On October 19, 2023, the Directorate General of Foreign Trade (DGFT) has published an update on the implementation of the import licence requirement for IT hardware (laptops, computers, servers etc.). 

Pursuant to nasscom's request DGFT has provided important clarifications in writing:

1. SEZ units and STPI units are not required to obtain an import authorisation for import of IT hardware, for captive consumption by importing units.

2. There are no import restrictions on spares, parts, assemblies, components, and other inputs necessary for the IT hardware devices.

3. Covered items that are essential for capital goods are exempt. Exemption does not apply if servers or laptops etc. themselves are the primary capital goods. For example, laptops/tablets accompanying machinery such as MRI machines, CNC machines, Unmanned Arial Vehicles (UAVs), etc., are allowed exemptions.

Additionally, the following relaxations from import authorisation have been given:

1. IT hardware restricted for import which are manufactured in SEZ can be imported to Domestic Tariff Area (DTA) without an import authorisation, on payment of applicable duties. Activities such as re-packing, labelling, refurbishing, testing and calibration alone within the SEZ are not considered as manufacturing for availing exemption from import authorisation.

2. Private entities importing restricted IT hardware for supply to Central Government/agencies owned or controlled by Central Government, and State Government for Defence or Security purposes are exempt from the requirement of import authorisation. For availing this exemption, private entities must provide a valid End User Certificate to the customs authorities.

3. IT hardware imported for repair and /or return and/or replacement, or IT hardware sold earlier, re-import of such items repaired abroad. This is exempted on a self-certification basis.

We had also asked for overall clarity and streamlining of the application process, for ease of compliance for the industry. DGFT has now given essential clarifications regarding the process for application and amendment:

1. Importers can apply for multiple authorisations, which will be valid up to September 30, 2024.

2. The quantity mentioned on a valid import authorisation can be amended at any point, subject to the overall value of the import authorisation remaining unchanged. The application for amendment may be filed online on the DGFT Website.

3. All Authorisations for restricted imports issued on or after October 19, 2023 for EDI Ports shall be issued electronically only. No paper copy of these authorisations will be provided. The authorisation data will be transmitted electronically to the customs port of registration.

 

Another issue that has been resolved as per nasscom's request is to do away with the requirement of uploading BIS certificate on the application portal.

 

 

We will continue to work with the industry and the government to ensure smooth implementation of the import licence requirement.

 The policy circular is attached below.

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


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Download Attachment

Policy Circular 06 dated 19-10-2023-.pdf

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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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