DGFT amends Import Policy Conditions for import of computers, laptops, tablets and servers

This Tax Alert summarizes a recent Notification[1] and Policy Circular[2] issued by the Directorate General of Foreign Trade (DGFT) amending and clarifying Import Policy Conditions for import of specified Information Technology (IT) hardware.

Earlier, import of laptops, tablets, all-in-one personal computers, ultra-small form factor computers and servers falling under HSN 8471 were put under 'Restricted' category w.e.f. 1 November 2023 (subject to certain exceptions) and their import would be allowed against a valid license (Import Authorization)[3].

Vide present Notification, exemption from obtaining Import Authorization for importing above stated IT hardware is extended to following cases:

• Such hardware manufactured in Special Economic Zone (SEZ) units and imported by Domestic Tariff Area (DTA) unit.

• Import by private entities on behalf of Central Government (CG), State Government and agencies/ undertakings owned and controlled by CG for Defence and Security purposes.

• Hardware imported after sale for repair/ return/ replacement as well as re-import of repaired IT hardware.

Further, it is clarified that:

• SEZ units and Export Oriented Units (EOUs)/ Electronics Hardware Technology Park (EHTP) units/ Software Technology Parks of India (STPI) units/ Bio-technology Park (BTP) units are not required to obtain Import Authorization, provided the imported hardware is used only for captive consumption.

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

• IT hardware items essential for capital goods are exempt from import licensing requirements. However, if such hardware itself are primary capital goods, the exemption would not apply.

• The importers are allowed to apply for multiple authorizations and the same are valid upto 30 September 2024. The quantity mentioned in the Import Authorization may also be amended at any point, provided that overall value of the Import Authorization remains unchanged.  

[1]  Notification No. 38/2023 dated 19 October 2023
[2]  Policy Circular No. 6/2023-24 dated 19 October 2023
[3] Refer our alerts “DGFT issues notification to restrict import of computers, laptops, tablets and servers” dated 4 August 2023 and “Restriction on import of computers, laptops, tablets and servers to be effective from 1 November 2023” dated 5 August 2023