Indian Gov Extends Deadline for Import License Rule on Laptops & Tablets

In a partial reversal of a surprising decision made just a day prior, India's trade regulator has announced a transition period of approximately three months before the implementation of a new licensing system for the import of laptops, tablets, and personal computers. This update comes after the immediate imposition of the licensing requirement sparked widespread concerns and requests for a delay from various quarters.

According to a late Friday notification from the government, the transition period allows import consignments to be cleared without a license until October 31. However, starting from November 1, a government permit will be mandatory for the clearance of imports in this category.

As highlighted by officials, this move aims to ensure the oversight of trusted hardware and systems while simultaneously working towards reducing dependence on imports.

This development marks a significant shift from the initial decision made on Thursday, which had caught many technology companies, including Apple, Dell, and Samsung, off guard. The abrupt imposition of the licensing requirement had raised concerns about potential supply disruptions and the feasibility of adapting to the new regulatory environment.

Although the government had not initially provided a specific reason for the immediate imposition of the licensing requirement, officials later clarified that the move was primarily driven by the goal of addressing the trade imbalance with China. The step was expected to incentivize technology giants to boost local manufacturing efforts, aligning with India's broader economic goals.

Responding to industry concerns, a government official confirmed to Reuters that the administration was considering requests to defer the implementation of the new import license order by three to six months. However, the subsequent announcement of the transition period suggests that the government has opted for a middle ground, allowing companies to adapt to the regulatory changes over a defined period.

To facilitate the new licensing process, India's Ministry of IT and Electronics has assured companies of swift issuance of licenses, with a commitment to avoid creating supply gaps in the market. Licenses, which can be applied online, are expected to be issued within two days of application. Companies seeking licenses must provide information about the origin of consignments, the number of items, and past import history.