**Policy Circular Summary: Implementation of Import Management Systems for IT Hardware**
This policy circular, issued by the Directorate General of Foreign Trade (DGFT), Ministry of Commerce and Industry, Government of India, on October 19, 2023, provides clarifications regarding the implementation of import restrictions on specified IT hardware, as per DGFT Notifications No. 23/2023 dated August 3, 2023, No. 26/2023 dated August 4, 2023, and No. 38/2023 dated October 19, 2023.
Key clarifications include:
* **Exemption for SEZ Units and EOUs:** Special Economic Zone (SEZ) units and Export Oriented Units (EOUs)/EHTP/STPI/BTP are exempt from obtaining restricted import authorization for IT hardware imports as per Notification 23/2023, provided the imports are for captive consumption.
* **No Restrictions on Spares and Components:** There are no import restrictions on spares, parts, assemblies, sub-assemblies, components, and other inputs required for the IT hardware devices specified under Notification 23/2023.
* **Exemption for IT Hardware Essential for Capital Goods:** Notified IT hardware items essential for Capital Goods are exempt from import licensing requirements. Examples include laptops/tablets accompanying machinery like MRI machines, CNC machines, and Unmanned Aerial Vehicles (UAVs). This exemption does not apply if the IT hardware itself is the primary capital good.
* **Multiple Authorizations and Amendments:** Importers are allowed to apply for multiple authorizations. Authorizations are valid until September 30, 2024. The quantity specified on a valid Import Authorisation may be amended at any point, subject to the overall value of the import authorisation remaining unchanged. Amendment applications can be filed online via the DGFT website (https://dgft.gov.in).
For further information, contact Md. Moin Afaque, Deputy Director General of Foreign Trade, at ddg1import@dgft.gov.in. The reference number for this circular is F.No.01/89/180/39/AM13/PC-2[A.E-2261].
Key Entities Referenced
Directorate General of Foreign Trade: The issuing authority of the policy circular.
New Delhi: Location of the Directorate General of Foreign Trade office.
Import Management Systems for IT Hardware: The subject of the policy circular.
DGFT Notification No. 23/2023: Notification restricting import of specified IT Hardware.
DGFT Notification No. 26/2023: Notification related to the restriction on import of specified IT Hardware.
DGFT Notification No. 38/2023: Notification related to the restriction on import of specified IT Hardware.
SEZ Rule 27: Rule pertaining to Special Economic Zones relevant to import exemptions.
FTP 2023: Foreign Trade Policy 2023, referenced for SEZ unit exemptions.
Government of India
Ministry of Commerce & Industry
Department of Commerce
Directorate General of Foreign Trade
Vanijya Bhawan, New Delhi
Dated: 19th October 2023
Policy Circular No. 06/2023-24
To
1. All Customs Commissionerate(s)
2. Members of Trade & Industry
Subject: Implementation of Import Management Systems for IT Hardware -reg.
Attention is drawn to DGFT Notification No. 23/2023 dated 03rd August 2023 read
with Notification No. 26/2023 dated 4th August 2023 and Notification No. 38/2023 dated
19th October 2023 whereby Import of certain specified IT Hardware was ‘Restricted’. In
this regard, the following clarifications are provided:
i. Reference SEZ Rule 27 and Para 6.01(d) of the FTP 2023, SEZ units and
EOUs/EHTP/STPI/BTP are not required to obtain a 'restricted import authorisation' for
import of IT hardware restricted vide Notification 23/2023 dated 03.08.2023. The given
exemption is allowed only for the captive consumption of the concerned importing
unit(s).
ii. There are no import restrictions on spares, parts, assemblies, sub-assemblies,
components, and other inputs necessary for the IT hardware devices as specified under
Notification 23/2023 dated 03.08.2023.
iii. Notified IT hardware items essential for Capital Goods are exempt from import
licensing requirements. For instance, laptops/tablets accompanying machinery such as
MRI machines, CNC machines, Unmanned Arial Vehicles (UAVs), etc., are examples of
allowed exemptions. However, if servers or laptops etc. themselves are the primary
capital goods, this exemption does not apply.iv. The importers are allowed to apply for multiple authorisations. The authorisations
issued shall be valid upto 30th September 2024. Subsequent to the issuance of an Import
Authorisation, the quantity(s) as mentioned on a valid Import Authorisation may also be
amended at any point, subject to the overall value of the import authorisation remaining
unchanged. The application for amendment may be filed online on the DGFT Website
(https://dgft.gov.in)
This is issued with the approval of Competent Authority.
(Md. Moin Afaque)
Deputy Director General of Foreign Trade
Email: ddg1import-dgft@gov.in
(Issued from F.No.01/89/180/39/AM-13/PC-2[A]/E-2261)