US seeks details of India's laptop, servers import restriction from 2024

The United States has sought details of India’s plan to restrict the import of laptops, all-in-one personal computers, ultra-small form factor computers, and servers through a licencing system from November 2024.

In a list of questions raised before the Committee on Import Licencing of the World Trade Organisation (WTO) on October 18, the US wanted to know the objective of the import licensing requirements. The country asked India whether there is a plan to expand the use of import licencing beyond the listed products and whether India carried out a public notice and comment period ahead of the publication of this measure. It wanted India to inform when the measure will be notified to the Committee on Import Licencing.

The questions were triggered by India's notification on August 3, 2023, titled "Amendment in Import Policy of Items under HSN 8471 of Chapter 84 of Schedule-I (Import Policy) of ITC (HS)". It defines all products classified under HS 8741 as "restricted" and provides that their import would require a valid licence for restricted imports as of November 1, 2024. Earlier on September 26, 2023, India had announced that from November 1, 2023, onwards, importers of these items will be required to register on an "import management system" to import regulated products.

The US wants to know how the licences will be issued and whether the products will be subject to automatic or non-automatic licencing. In case it is non-automatic, the country wanted India to explain what criteria will be used to approve or deny a licence, whether India prioritises specific industries, sectors, or products and on what basis were these priorities determined. It also wanted to know the timeframe for issuing a licence for listed products and how India will avoid long or unpredictable delays. It sought the details of the process the importer should follow to apply for a licence and how importers can seek information about the status of their request for a license or make corrections to licence applications.

On the initial monitoring plan, the US wanted to know details like its timeframe, the data importers would be required to provide and whether India would use the information it gathers to put some quantitative restrictions in place.