The government on Thursday, August 3, imposed import restrictions on laptops, tablets, all-in-one personal computers, ultra-small form factor computers, and servers with immediate effect. The move is expected to cut imports from countries like China.

In its notification, the Directorate General of Foreign Trade (DGFT) said exemption from import licensing is provided up to 20 items per consignment for R&D, testing, benchmarking and evaluation, repair and return and product development purposes.

“Import of laptops, tablets, all-in-one personal computers, and ultra-small form factor computers, servers…is ‘Restricted’ with immediate effect," it said. The DGFT is an arm of the commerce and industry ministry which deals with exports and imports in the country.

Products under restrictions need licence or permission from the government.

“Exemption from Import Licencing requirements is provided for Import of 1 laptop, tablet, all-in-one personal computer, or ultra small form factor computer, including those purchased from e-commerce portals, through post or courier. Imports shall be subject to payment of duty as applicable," according to the notification.

It also said laptops, tablets, all-in-one personal computers, and ultra small form factor computers and servers which are an essential part of a capital good shall be exempted from the import licencing requirements.

On the re-import of goods repaired abroad, the DGFT said a licence for restricted imports shall not be required for repair and return of said items.

Abhishek Jain, partner and national head (indirect tax) at KPMG, said, “The restriction on imports of prescribed IT hardware products should help provide a big boost to the Make in India campaign in this sector. With PLI also being announced for this sector, domestic manufacturing of these IT hardware goods should witness a significant boost."