IT hardware companies may be asked to register for imports in FY24: Report

This comes a month after the DGFT announced that the import of certain IT hardware products, including laptops, tablets, PCs, servers, etc., would fall under the restricted category

The Centre is considering a mechanism for imports of IT hardware for at least this financial year with no quota and licensing requirements, The Economic Times (ET) reported on Tuesday. It has told the same to some manufacturers. The move may come as a relief to companies like HP, Dell, Apple, Samsung, Lenovo and Asus, among others.

This comes a month after the Directorate General of Foreign Trade (DGFT) on August 3 announced that importing certain IT hardware products, including laptops, tablets, PCs, servers, etc., would fall under the restricted category and require a licence, effective immediately.

It had cited security concerns for the decision. After strong pushback, the Centre extended the timeline to November 1, 2023.

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In a meeting on September 8 chaired by Minister of State for Electronics and Information Rajeev Chandrasekhar, the Centre told the companies about the registration. The meeting was attended by representatives of several companies and industry associations.

In the current financial year, the Centre will only monitor the source and value of devices. They will be allowed to import as much as required to meet the local demand. From next year, the quotas and other compliances may kick in.

"The government wants PLI for IT hardware 2.0 should succeed and since the majority of the companies will commence manufacturing under the scheme from April 1 next year, there will be a gap in supplies, which can be met only through imports," an executive who participated in the meeting was quoted as saying by ET.

The report added that the Centre has also assured the companies that it will provide them with all the required support to increase local manufacturing under the production-linked incentive (PLI) scheme.

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Another executive was also quoted in the report as saying that if the import curbs are implemented on November 1, there will be supply constraints, and prices will go up.