Major world data know-how and electronics manufacturing giants corresponding to Apple, Intel, Google, Lenovo, Dell Technologies, HP, and others have known as on the US authorities to “use every available forum” to push India to rethink implementing the import restriction coverage on IT {hardware} and launch a proper stakeholder session to solicit suggestions from the trade.The Directorate General of Foreign Trade (DGFT) has positioned electronics gadgets corresponding to laptops, tablets, all-in-one-personal computer systems, small kind issue computer systems and servers underneath the restricted imports class, thereby requiring firms to hunt an extra licence to convey these items into the nation.

In an August 15 letter, eight US-based commerce our bodies, together with Consumer Technology Association, Information Technology Industry Council, Semiconductor Industry Association and United States Council for International Business, have requested 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 ICT sector are consistent with India’s international trade obligations and commitments”. ET has seen a replica of the letter.

The adoption of the licensing measures imposed by India, the commerce our bodies stated of their letter, raised considerations about India’s reliability as a commerce and provide chain companion.

More clarifications sought
These measures, they stated, undermined the shared goal of deepening the bilateral financial relationship between the 2 international locations.In an August 3 notification, the DGFT had, citing safety considerations, introduced that the import of sure IT {hardware} merchandise would fall underneath the restricted class and would subsequently require a licence, efficient instantly. After sturdy pushback from the trade, the federal government prolonged the timeline to November 1, 2023.

Later, of their conferences with the federal government, world IT {hardware} firms working in India sought an extension of 9-12 months of the deadline for licences required for the import of IT {hardware}, including that they want affordable time to arrange manufacturing and readability across the course of for licensing.

“This policy (of import restrictions) — announced with no prior notice or public consultation — could significantly disrupt trade, hamper efforts to more closely integrate India into global supply chains, and harm businesses and consumers in both countries,”, the commerce associations stated of their letter.

The non-tariff barrier to commerce, at minimal, will create uncertainties and delays that can hamper the graceful functioning of worldwide provide chains, the commerce our bodies stated.

“World Trade Organization (WTO) rules rightfully discipline such actions, and it is critically important that the United States uphold these standards to discourage the further expansion of trade-restrictive measures in India and beyond,” they stated.

The letter added that the licensing measures may also impose “considerable risk” on information centre investments in India by US firms by disrupting the import of servers, adversely affecting India’s IT sector.

The commerce our bodies additionally requested for the Indian authorities to offer extra complete clarifications and particulars concerning the scope of the exemptions underneath the licensing rule.

Citing for instance, the letter stated that one firm has indicated that this import licence would inhibit their skill to export computer systems from the US to India with pre-loaded software program meant to facilitate manufacturing at a number of amenities in India.