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Top US companies ask India to reconsider new import Rule

Apple, Intel protest letter against India’s new rule on laptop import

Two weeks back, India imposed restrictions on the import of laptops, tablets, PCs and other computers. However, the move has not gone well as US companies urge India to reconsider this new rule.

Global Techs

Apple, Intel and other global tech giants has raised an appeal to the United States to push India to take down the import rule. As per reports, the tech giants has asked US government to use every available forum to push India to reconsider the law.

Earlier, the center government of India imposed restrictions on the import of laptops, tablets, and computers with immediate effect. Further, the rule added that the import will be allowed only in case of valid license. However, the rule has been kept on hold until November 1¸2023 due to a clash in the industry.

According to a report, several US trade-bodies mainly, Consumer Technology Association, Information Technology Industry Council, Semiconductor Industry Association and United States Council for International Business issued a letter. Further, the letter was addressed to the US Trade Representative and the US Secretary of Commerce to use every available forum of engagement with the government of India to ensure that its measures in the Information and communications technology (ICT) sector are consistent with India’s international trade obligations and commitments.

Import Management System

As per trade companies, the adoption of licensing measures by Indian government has raised a concern of reliability as a trade partner. Further, the companies claim the new rule undermines the objective shared of economic growth between two countries.

However, Rajeev Chandrasekhar, MoS for Electronics and Information Technology, has defended the objective behind the rule. In addition, he said, the move was not about imposing a license but ensuring that the Indian tech eco-system used only trusted parts. Besides, India’s dependence on imports gets reduced and pushes domestic manufacturing.

“This is certainly not an attempt to go back to the license raj. As we increase the digitization of our economy, we certainly want to make sure that the elements of hardware that are going into the digital economy are all monitored and come from trusted sources,” Chandrasekhar recently said. 

“In hindsight, this should not have been called curbs or licensing. This should have been called more of an import management system.”

Earlier, Chandrasekhar in a post on Twitter said the objective behind the move was to ensure trusted hardware and systems, reduce import dependence and increase domestic manufacturing of this category of products.

Licensing

The Directorate General of Foreign Trade (DGFT) has prepared a portal, and companies/traders can apply online for getting a license. It is expected that DGFT will issue a license within 3/4 days if details are filled in properly.

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