India introduces licensing requirement for imports

Major companies such as Apple, Dell, and Samsung could be significantly affected by India's intention to introduce a licensing requirement for the import of PCs, tablets, and laptops. Although the government has not yet provided an official statement regarding this plan, it is likely it will align with Prime Minister Modi's new motto and policy: "Make in India." India is aiming to favor local production and encourage tech giants to relocate their manufacturing operations to India through this initiative.

What changes with this new policy?

The exact details of the new requirements are not yet known, but they are expected to bear many similarities to the import restrictions imposed on TVs in 2020. However, some key points have been disclosed:

  • The new licensing system will require a specific license to be obtained for each individual product. This is likely to significantly delay delivery times for each new model.
  • For security reasons, China will no longer be allowed to export to (or import into) India in these product categories. Given that the current import of these products is 50 percent sourced from China, this will have a significant impact.
  • Licenses will only be granted to "trusted partners".

Protectionist Measures

India is clearly implementing these measures to stimulate and protect the Indian market from Chinese competition. It is plausible that more import restrictions, particularly on Chinese products, will follow. This measure follows the global trend of protectionism. The context in which these measures are imposed may vary; for example, the EU is primarily focused on compensating environmental measures for European-based companies with the CBAM regulations.

However, the ultimate consequences remain the same. It could be crucial for your company to stay informed about these (global) developments. We understand that you may not have the time or resources to do so and are here to assist. Please feel free to contact our specialists at any time with your inquiries.

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29 Aug 2023 at 10:26 am
2 min
Published by:
Steven Sewberath Misser
Sr. Customs Specialist
Customs support
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