Indian IT hardware import system introduces complexity instead of clarity

India implemented a management system for imported IT hardware in November. The Indian government clarified that desktop PCs are not included in the restricted list, a move intended to address confusion but ended up with even greater complexity.

The Directorate General of Foreign Trade of India (DGFT) issued a document saying that only the import of notebooks, tablets, all-in-one PCs, ultra-small form factor computers, and servers falling under HSN 8471 is "restricted" and import should be allowed against a valid Import authorization only for above five item categories, adding that the given import restriction does not apply to any other goods such as Desktop Computers, etc. under tariff head 8471.

According to DGFT's website, all categories under the HS codes 847130, 847141, 847149, and 847150, computers of all forms, are restricted under the import management system, whether these desktops, notebooks, or tablets.

Products under the HS code 847130 are automatic data processing machines under 10 kg, the products that India would like to encourage manufacturers to produce locally, such as tablets and notebooks. However, some desktop computers may weigh under 10 kg, such as Apple's iMac. According to DGFT's clarification, desktop PCs are exempt from the import management system, but Apple's Mac Pro may be classified as HS codes 847141 or 847150, which are restricted based on DGFT's rules.

In May 2023, India launched a revised INR170 billion Production Linked Incentive (PLI) for IT hardware to boost local manufacturing in India. To encourage more manufacturers to make products locally, India launched the import management system, which requires importers to obtain an import license before shipping their products to India.

Source: DGFT India, January 2024