INDUSTRY

Government puts import curbs on laptops, computers; industry flags price rise

The government on Thursday imposed import restrictions on laptops, tablets and certain types of computers with immediate effect for security reasons and the need to promote domestic manufacturing. 

The move will curtail inbound shipments of these goods from countries like China and Korea. 

Importers of these items will now have to seek permission or licence from the government for their inbound shipments. 

A senior government official said that there were a variety of reasons for imposing these restrictions, but the primary one is “to ensure that the security of our citizens is fully safeguarded”. 

The official also added that internet penetration was increasing in the country in a bigger way, and in this background, Indian citizens needed to have an environment and ecosystem, where they were not exposed to machines or instruments which might have security risks. 

“Some of the hardwares (sic) could potentially have security-related issues and could compromise sensitive and personal data. We have taken into account (a) few of those goods,” he added. 

The Directorate General of Foreign Trade (DGFT) in a notification however said that certain exemptions had been given against these curbs. 

“Import of laptops, tablets, all-in-one personal computers and ultra-small, form-factor computers, servers… is ‘restricted’ with immediate effect,” it said. 

The official further said that “safety is the topmost priority” of the government, and the move was in compliance with the rules of the World Trade Organisation (WTO). 

Under the transition provisions of the Foreign Trade Policy (FTP), if the bill of lading and letter of credit have been issued or opened before August 3, those import consignments could be imported. 

An importer can apply for a licence from August 4. The trader should have to be a regular importer to get a license. 

“The idea is not to ban imports but to regulate the inbound shipments of these goods,” the official said. 

When asked if the move would have an impact on domestic prices, the official said “no”. However, industry experts have flagged apprehensions that it could lead to price rise of these instruments. 

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