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Indian IT hardware import system introduces complexity instead of clarity

Jingyue Hsiao, DIGITIMES Asia, Taipei 0

Credit: AFP

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.

Import policy for computers, peripherals, and components

HS Code

Product

Status

84713010

Personal computer

Restricted

84713090

Other

Restricted

84714110

Micron computer

Restricted

84714120

Large or mainframe computer

Restricted

84714190

Other

Restricted

84714900

Other automatic data processing machines: Other, presented in the form of systems

Restricted

84715000

Processing units other than those of subheading 8471.41 or 8471.49, whether or not containing in the same housing one or two of the following types of unit: storage units, input units, output units

Restricted

84716010

Combined input or output units

Free

84716024

Graphic printer

Free

84716025

Plotter

Free

84716029

Other

Free

84716040

Keyboard

Free

84716050

Scanners

Free

84716060

Mouse

Free

84716090

Other

Free

84717010

Floppy disc drives

Free

84717020

Hard disc drives

Free

84717030

Removable or exchangeable disc drives

Free

84717040

Magnetic tape drives

Free

84717050

Cartridge tape drive

Free

84717060

CD-ROM drive

Free

84717070

Digital video disc drive

Free

84717090

Other

Free

84718000

Other units of automatic data processing machines

Free

84719000

Other

Free

Source: DGFT India, January 2024