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Apple, Dell and more IT firms appeal government to delay laptop import ban
IT hardware companies have stated they need time to set up manufacturing plants in India. Consequently, these companies have appealed to the government to extend the deadline by one year.
Apple, Acer, HP, Dell and other PC makers have reportedly petitioned the government to extend the deadline to obtain licenses for laptops, PCs, tablets and other items classified under HSN 8741. According to The Economic Times, IT hardware companies have stated that they require time to set up manufacturing plants in India. Consequently, these companies have appealed to the government to extend the deadline by one year.
The report quoting one of the industry executives in the meeting notes says that PC makers need time to set up plants in India. PC makers have also asked for clarification on the "licensing process."
However, the decision does not only affect foreign players, as many Indian IT companies depend on imports from other countries, including China. The government's decision to restrict imports of laptops and PCs from different countries mainly promotes manufacturing in India. The report notes that the government has also sought feedback from Indian OEMs to understand their production capacity and the time needed to "ramp up."
An industry executive told ET, "The notification had said shipments enroute would be cleared. But from August 4, a day after the DGFT notification came, all shipments were being stopped. There was no custom clearance happening till almost late evening of August 5."
However, the government is reportedly downplaying the concerns. Citing an official, the report noted: "All these companies already have very well-oiled mechanisms for imports and know the process to get shipments cleared. We have, however, assured them of all help."
Government's ban on the import of laptops and desktops
On August 3, the Directorate General of Foreign Trade (DGFT) of the Ministry of Trade and Industry said that PC OEMs must obtain a license to import laptops, PCs, tablets and other products with the code HSN 8741 to India.
While it's unclear if the cost of laptops and tablets will increase, customers may face additional charges. However, this move could benefit India in the long run as it will help reduce its dependence on China. The government has also defended production-linked incentives (PLI) for IT hardware. The scheme was revised in early May with an outlay of Rs 17 000 crore, double the budget initially approved in 2021. The restriction on PC imports reflects earlier government action on colour TVs in 2020. After the initial launch, the government extended the license deadline to November.
