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Computer import curbs not part of FTP Principles of Restrictions

The duty rates on computer software and hardware were cut to zero after India became a signatory to the Information Technology Agreements (ITA-1 and ITA-2) at the World Trade Organisation

Photo: Bloomberg
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Representative Image (Photo: Bloomberg)

TNC Rajagopalan

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On August 2, the government restricted the imports of personal computers, laptops, tablets, ultra-small form computers and servers falling under the HSN classification ‘8471’ with immediate effect. The very next day, the government postponed the restrictions to apply for imports of those items with effect from November 1, 2023. Quite obviously, the government had not thought through before imposing the restrictions and had not consulted relevant sections of the industry.

In the eighties, the government expected the electronics hardware exports industry to be a significant driver of growth, set up the Santacruz Electronic Export Processing Zone (SEEPZ), and introduced the
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