India has told the World Trade Organization (WTO) that its decision to restrict the imports of personal computers, laptops and other IT hardware products is based on national securityconcerns. India told the multilateral watchdog that the administrative purpose of the measure is to “protect public morals, quota administration, regulate imports of arms, ammunition or fissionable materials and safeguard national security”.Protection of patents, trademarks and copyrights, and the prevention of deceptive practices was the other purpose of this measure.
India made its case to the WTO after The US, China, South Korea and Taiwan had raised concerns on the issue at the WTO. The US said that the measure prompts its companies to think twice about doing business in India and it would impact its exports. US also said that the decision is creating uncertainty for exporters and downstream users.
Taiwan sought the purpose of this policy. Beijing asked India to clarify its changing measures and the purpose of this policy. While South Korea said that the measure seems inconsistent with WTO rules and could create unnecessary trade barriers.
What DGFT notification says
For those unaware, in October, India launched a new system of authorisation for import of laptops, PCs, tablets and other hardware to monitor their shipments. “Monitoring is important as a handful of countries such as China, Singapore and Hong Kong account for more than 80% of the imports,” said an official. On hardware industry concerns, a government official clarified that India has not imposed licensing requirements on imports of laptops and computers but will only monitor their inbound shipments. This new system became operational starting November 1.
While the IT hardware product industry comes under MeitY, the DGFT notifies decisions with regard to import/export of a product.
India imports about $7-8 billion worth of these goods every year. The country has imported personal computers, including laptops, worth $5.33 billion in 2022-23, as against $7.37 billion in 2021-22.
India made its case to the WTO after The US, China, South Korea and Taiwan had raised concerns on the issue at the WTO. The US said that the measure prompts its companies to think twice about doing business in India and it would impact its exports. US also said that the decision is creating uncertainty for exporters and downstream users.
Taiwan sought the purpose of this policy. Beijing asked India to clarify its changing measures and the purpose of this policy. While South Korea said that the measure seems inconsistent with WTO rules and could create unnecessary trade barriers.
What DGFT notification says
For those unaware, in October, India launched a new system of authorisation for import of laptops, PCs, tablets and other hardware to monitor their shipments. “Monitoring is important as a handful of countries such as China, Singapore and Hong Kong account for more than 80% of the imports,” said an official. On hardware industry concerns, a government official clarified that India has not imposed licensing requirements on imports of laptops and computers but will only monitor their inbound shipments. This new system became operational starting November 1.
While the IT hardware product industry comes under MeitY, the DGFT notifies decisions with regard to import/export of a product.
India imports about $7-8 billion worth of these goods every year. The country has imported personal computers, including laptops, worth $5.33 billion in 2022-23, as against $7.37 billion in 2021-22.