Directorate General of Foreign Trade (DGFT) on 3rd August Amended chapter 38 of schedule I of the Import Policy ITC (HS) for the Items Covered under Harmonized System of Nomenclature (HSN) Code 8471, which is the main head for Automatic Data processing machines and units thereof, magnetic or optical readers, machines for transcribing data onto data media in coded form and machines for processing such data and under the subhead 847130 the item covered are portable automatic data processing machines, weighing not more than 10 kg consisting of at least a Central Processing Unit, a keyboard and a display, which in general terms means a “Laptop, Note Book etc.” and under the subhead 84713010 which specifically is allotted to “Personal Computer”
In the previous regime, import under the HSN 8471 was free, which means there was no requirement to obtain any “Special” license to import the said products from the global market into India, whereas, the said scenario was changed when the Ministry of Commerce and Industry, Department of Commerce, Directorate of General of Foreign Trade issued a notification no. 23/2023 dated 03.08.2023 wherein the policy condition 04 of Chapter 84 of the said policy was amended and all the Imports of Laptops, Tablets, All-in-one Personal Computers, and Ultra Small form factor Computers and Servers falling under the HSN 8471 were “Restricted”
The effect of the said notification was that, as compared to the previous regime, in which the imports under the HSN8471 were free, and was not required any special license. Contrary to this, the products under the said code cannot be imported from global markets unless a special license for restricted imports from the DGFT is obtained.
The said notification came as a setback for the major importers who had their cargo’s shipping towards the Indian costs based on their pre-notification orders, and for those who have already placed their orders and the consignments were to be shipped as the effect of the notification is from “immediate effect”. The DGFT duly acknowledged the said problem, and on 04.0.2023, notification no. 26/2023 amending notification no. 23/2023 dated 03.08.2023 was issued wherein the effect of the notification was extended from “immediate effect” i.e. 03.08.2023 to 01.011.2023, which gave the importers a relaxation to clear their consignments of Laptops, tablets, All-in-one personal Computers, Ultra Small form factor computers and servers falling under the HSN 8471 till 31.10.2023 without any requirement of obtaining the license for restricted imports.
Now the question arises whether the said restrictions would apply to baggage rules as well, so, the same is answered by the DGFT in para ii to notification no. 23/2023 dated 03.08.2023, wherein they have specifically stated that “the said restrictions will not apply to Imports under Baggage Rules”. Apart from the said relaxation, several other relaxations have also been granted by the DGFT, namely:
A) As per para iii of the said notification, the exemption from the import licensing requirement has been provided for the import of 1 (One) Laptop, Tablet, All-in-one personal computer or ultra-small form factor Computer, including those purchased from e-commerce portals, through post or courier. This clearly states that no license is required if purchased online, and only one quantity is allowed, subject to the payment of Customs Duty. Whereas, it is pertinent to highlight that the said relaxation has not been given to “Servers”.
B) Exemption has also been given to R&D and testing centers, as per para iv of the said notification if 20 such items per consignment are imported for R&D, testing, benchmarking and Evaluation, repair and re-export and product development purposes, the imports shall be allowed without any licensing requirement. Whereas a specific condition has been implemented on such imports that the said products under the said consignment shall be used only for the purpose for which they have been imported and shall not be sold, and also, afterward, the product shall be destroyed beyond the use or re-exported.
C) Also, as per para v of the said notification, if goods are re-imported after being repaired, the exemption from licensing has been duly given
D) Lastly, the exemption has also been given on imports of the said HSN products if they form an essential part of the Capital Good, and hence, no restricted import license shall be required.
Take Away Note:
As discussed above, the effect and operation of the said notification has been extended from 03.08.2023 to 01.11.2023 and unrestricted imports can be carried out till 31.10.2023 for the HSN 8471 till 31.10.2023.
Disclaimer
The said article has been written for informative purposes, and the author or the publisher, or the firm takes no responsibility for its contents thereof. The said article is the opinion of the author based on the information provided on the portals of the regulatory authorities, and the same shall not be used for any legal purposes for forming an opinion or before any competent court of law.
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