IMPORT RESTRICTIONS (Syllabus: GS Paper 3 - Economy)

Context: The government imposed import restrictions on laptops, tablets, and certain types of computers with immediate effect for security reasons and the need to promote domestic manufacturing.

Key Points

• The move will curtail inbound shipments of these goods from countries like China and Korea.

• Importers of these items would now need permission or license from the government for their inbound shipments.

• Since imports will now be allowed only against valid import licences, the government can keep a strict watch on imports, especially from China, and check inflows whenever it feels the need.
• The notification also specifies various cases of exemptions from licencing requirements. 
• The restrictions are not applicable to imports under baggage rules, under which one old and a new laptop is allowed in a baggage.
• Although the import restrictions on laptops, tablets and computers imposed are not country specific, it would affect imports from China as the country accounts for a substantial portion of the $7 billion of annual imports of the items.
• While the notification comes into force with immediate effect, under the transition provisions of the foreign trade policy if the bill of lading and letter of credit have been issued or opened before August 3, those import consignments can be imported without licence till August 31. After that, importers will need licences.