India Extends IT Hardware Import License Scheme That Enraged Big Tech

India's Ministry of Commerce and Industry has extended the scheme that enraged hardware makers by requiring them to secure import permits – and indicated it will be revised further.

The government introduced the licensing requirement in August 2023 – with no warning, consultation, nor explanation of what would be achieved by demanding import licenses for laptops, tablets, PCs, servers, notebooks, ultrasmall form factor computers and all-in-one PCs.

Global tech players pushed back and the start date of the scheme was delayed. After further pressure, the regime was later softened with the removal of the license requirement for desktop PCs.

Despite the protests, the licensing scheme proved not to be arduous: within a week of implementation, 110 firms – including Acer, Xiaomi, Asus, Apple, Dell, HP, Samsung, and Lenovo – were approved.

Those first licenses were due to expire in September 30, but news of an extension to December 31 emerged in a Tuesday circular [PDF].

Those who currently hold a license will automatically receive an extension that expires on December 31, and anyone applying for a license now will be authorized until that date.

"Importers would be required to apply for fresh authorisations for the period from 01.01.2025 subject to detailed guidance to be provided shortly," states the circular.

The nature of that guidance is unknown, as is whether the rules are going to change.

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The purpose of the licensing regime remains obscure, although India's ambition to become an electronics manufacturing power is an obvious reason for checks on imports. ®