Effective immediately the Indian government is making the move to restrict laptop, tablet, and PC imports in the HSN 8741 category with a new licensing bill to further prioritise the “Make In India” program.
The program is also designed to meet demand for locally produced tablets and computers, but now we imagine the new policy will ensure there are price markups for imported laptop and tablet devices, although this has not been clarified.
Any importing of any type of HSN 8741 category laptops, tablets, PCs, and ultra-small form factor computers will now be restricted, and their import would be granted against a valid license for constrained imports.
However, imports under baggage rules restriction will not be affected though the restriction can be amended in the future.
According to the Ministry of Commerce and Industry, “Exemption from import licensing requirements is 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.”
Additionally, the new restriction will not affect to passengers carrying the above devices in their luggage.
Currently, Dell, HP, and Lenovo have a large manufacturing reach in India with locally assembled laptops and will be affected less compared to other foreign brands.
With the new licensing requirements, now other brands will also launch their own locations in India like most recently Samsung.
To get around the enforced 18% goods and services tax (GST) on smartphone imports, brands like Apple and Xiaomi employ contract manufacturers to manufacture their phones locally, which nets their tax benefits.