New Delhi: The Indian government has relaxed regulations governing the transfer of used IT hardware, including laptops and desktops, from Special Economic Zones (SEZs) to Domestic Tariff Areas (DTAs). SEZs, treated as foreign territories for customs laws, require formalities similar to imports when goods are brought into the domestic market.
The Directorate General of Foreign Trade (DGFT) issued a notification announcing that companies can now shift used IT assets such as laptops, desktops, monitors, and printers from SEZs to DTAs without requiring a license, but only for their subsequent use in DTA operations.
However the equipment must have been used within SEZ units for a minimum of two years and should not exceed five years from their date of manufacturing. The import policy specifically covers cases where a unit is closing its operations in SEZ and relocating to DTA, allowing the import of these items without a license, provided they meet the five-year manufacturing limit.
The DGFT emphasised that the relaxation does not apply to second-hand or used equipment that has been in use for less than two years within SEZs. Importing any used IT assets failing to meet the specified criteria will require a license for restricted import.
These relaxations are applicable on companies not availing exemptions from regulatory requirements such as Compulsory Registration Order (CRO), Restriction of Hazardous Substances (RoHS), and WPC (wireless planning and coordination) import licenses.
This development is noteworthy, especially considering the government’s prior adjustments in October last year, allowing importers to bring in IT hardware shipments from overseas with only an ‘authorisation,’ streamlining the import management system.
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