The United States, on Friday, raised concerns over India's updated import requirements for computers and tablets, urging New Delhi to ensure that the existing online system and associated policies do not impede trade in the sector. This issue was highlighted by the US Trade Representative, Katherine Tai, during the 14th Trade Policy Forum (TPF) meeting, co-chaired by Indian Commerce and Industry Minister Piyush Goyal.
Minister Goyal explained that the measures were implemented due to national security concerns. In the joint statement issued post the TPF meeting, it was mentioned that Ambassador Tai acknowledged India's objectives and expressed a willingness to collaborate on enhancing supply chain resilience in the sector.
The statement emphasized India's commitment to continued engagement with the United States and other stakeholders on the matter. The US side urged India to ensure that the existing end-to-end online system and related policies do not hinder future trade.
In October of the previous year, the Indian government adjusted restrictions on the import of laptops and computers, allowing importers to bring in IT hardware shipments from overseas with a simple "authorization" by specifying quantity and value. The new "import management system" aims to monitor shipments of laptops, tablets, and computers without disrupting market supply or creating a burdensome licensing regime.
Prominent electronic brands in the market, such as HCL, Samsung, Dell, LG Electronics, Acer, Apple, Lenovo, and HP, could be affected by these import requirements. The government initially announced import restrictions on August 3, 2023, only to defer the decision on August 4, citing industry concerns. The licensing regime was then set to begin on November 1.
Importers can apply for multiple authorizations valid until September 30, 2024, and these authorizations will be issued for any number of consignments during this period. Post-September, the government plans to assess the data, consult with the industry, and decide on future steps.
India had imported goods worth USD 8.7 billion in 2022-23, down from USD 10.3 billion in 2021-22 and USD 7.1 billion in 2020-21. On November 1, 2023, the government approved 110 out of 111 applications, including those from major players like Apple, Dell, and Lenovo, seeking permission for imports of IT hardware products worth nearly USD 10 billion under the new system.
(With Agency Inputs)
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