Government Relaxes Rules Regarding the Transfer of Used IT Hardware Items From Special Economic Zones To Domestic Tariff Areas

The government has loosened restrictions on businesses operating in special economic zones (SEZs) that are not part of duty-free zones or regions subject to domestic tariffs from moving old IT hardware products, such as laptops and desktop computers.

Under customs legislation, special economic zones (SEZs) are considered foreign territories, and importing products into the domestic market or domestic tariff area (DTA) is the equivalent of doing so.

Generally speaking, a license is required for a DTA business to import certain commodities from SEZs.

Reducing these restrictions, the Directorate General of Foreign Trade (DGFT) said in a notice that a business may transfer used IT assets (computers, desktops, monitors, and printers) from SEZ to DTA without a license as long as it is utilized “only” for DTA activities going forward.

These devices, however, have to have been in SEZ units for a minimum of two years and no more than five years from the date of manufacture.

“DGFT has been notified of the import policy regarding used IT assets (such as laptops, desktop computers, monitors, and printers) from SEZ to DTA.”

It also said that imports of certain goods are permitted without a license in situations when a company is leaving a Special Economic Zone (SEZ) and moving to the Digital Trade Area (DTA). However, the products must not be more than five years old from the date of manufacture.

It is not possible to move equipment from a SEZ unit to a DTA if it has been in service for less than two years and is in secondhand, worn, or old condition.

The statement read, “Import of any used IT assets which do not fulfil” these criteria “shall be subject to licence for restricted import.” It went on to say that these relaxations would only apply if no exemptions from any regulatory requirements, such as the import licence for wireless planning and coordination (WPC), the restriction of hazardous substances (RoHS), and the compulsory registration order (CRO), had been obtained.
The change is significant because, in October of last year, the government modified restrictions on laptop and computer imports, allowing importers to acquire IT gear from outside with just a “authorization” that included information on quantity and value.

The goal of the new “import management system” is to keep an eye on computer, tablet, and laptop shipments entering the nation without affecting market supply or requiring onerous licensing procedures.