For importing used laptops in India, a Restricted Import License is required due to new changes occurred from 01/11/2023 concerning the import of laptops, tablets & PCs falling under the HSN code 8741. Nevertheless, regulation and monitoring of this process is done under the Foreign Trade Policy by an India’s Department of Commerce wing known as the Directorate General of Foreign Trade or DGFT for short. To obtain the license, the importer needs to fill an application online through the DGFT web-site and attach some mandatory documents like bill of entry, invoice, as well as the proof of registration. The license facilitates the achievement of environmental standards contained in the e-Waste (Management) Rules, 2016, regarding e-waste management. Also, used laptops imported into the country must satisfy the BIS certification to guarantee safety and standard. These measures are intended to control the flow of second hand electronics, protect the environment and consumer interest.
Advantages of Used Laptop Import License
- Legal Compliance: Safeguards against legal compliances concerning the Directorate General of Foreign Trade (DGFT) compliances and legal implications.
- Access to Refurbished Devices: In the laptops category it assists to place affordable refurbished laptops hence making tech accessible to end users and organizations.
- Environmental Sustainability: Promotes the refurbishment and recycling of the electronic products under and under the provision of the e-Waste (Management) Rules, 2016.
- Cost Savings: Helps the business actors to acquire functional and less expensive laptops than nouvelle ones; hence, minimizes costs.
- Market Opportunities: It opens doors for refurbishing and resale of imported laptops satisfying the up surge demand for low cost laptop business.
- Enhanced Quality Assurance: Guarantees that the laptops imported for market meet the BIS certification, thus providing the consumers with the reliable and safe products.
- Technology Access for SMEs: Makes available cheap computing gadgets that will enhance productivity of the small and medium businesses.
- Economic Growth: Promotes establishment or growth of companies that deal with the refurbishment and resale of properties thus employment and boost the economy.
- Customization Options: Enables organizations to order laptops suited to particular requirements involving the physical components of the computers as well as the operating systems installed on them.
- Global Connectivity: Enhances the agreements between exporting countries and the importing country, and promotes cooperation in the electronics industry.
Who regulates the Restricted Import License (Used Laptop Import License) in India
- DGFT (Directorate General of Foreign Trade): Responsible for granting import licenses and regulating trade policies.
- Central Board of Indirect Taxes and Customs (CBIC): Handles customs duties and clearance processes.
- Ministry of Environment, Forest and Climate Change (MoEFCC): Ensures compliance with e-waste management rules.
Exemption to Restricted Import License (Used Laptop Import License)
As per Notification No. 23/2023 from DGFT on 3rd August 2023 following are the Exemptions-
- The said Restriction shall not be applicable to Imports under Baggage Rules, as amended from time to time.
- Exemption from Import Licencing requirements is provided for Import of 1 Laptop, Tablet, All-in-one Personal Computer, or Ultra small form factor Computer, including those purchased from e-commerce portals, through post or courier. Imports shall be subject to payment of duty as applicable.
- Exemption from import licence is provided for up to 20 such items per consignment for the purpose of R&D, Testing, Benchmarking and Evaluation, repair and re-export, Product Development purposes. Given imports shall be allowed subject to condition that the imported goods shall be used for the stated purposes only and will not be sold. Further, after the intended purpose, the products would either be destroyed beyond use or re-exported.
- In reference to para 2.28 of the FTP regarding re-import of goods repaired abroad, licence for Restricted Imports shall not be required for repair and return of said items.
- Laptops, Tablets, All-in-one Personal Computers, and Ultra small form factor Computers and Servers which are an essential part of a Capital Good shall be exempted from the import licencing requirements.
Documents Required for Restricted Import License (Used Laptop Import License)-
- Valid IEC (Import Export Code): Ensure it is updated.
- GST Registration Certificate: Necessary for tax compliance.
- Class III DGFT Digital Signature Certificate: Required for online submissions.
- Import Product Details: This includes the HSN code, technical description (brand, make, specifications), quantity, and CIF value.
- Country of Origin: Specify where the products are sourced from.
- Port of Import: Indicate the intended port for entry.
- Detailed Justification for Import: Provide reasons for the import request.
- Refurbishment Certificate: If applicable, proof that the laptops have been refurbished and meet quality standards.
- Test Certificates: Compliance certificates for safety standards like BIS (Bureau of Indian Standards).
These documents must be submitted through the DGFT online portal during the application process.
Procedure of getting Restricted Import License (Used Laptop Import License)-
- Prepare Documentation: Gather necessary documents, including:
Valid IEC and GST registration.
Class III DGFT Digital Signature Certificate.
Import product details (HSN code, brand, specifications).
Country of origin and port of import.
Detailed justification for the import.
- Submit Application: Visit the DGFT portal and complete the application for Import Authorization under the Import Management System.
- Application Review: The DGFT will evaluate your submission. If there are deficiencies, respond within 30 days.
- Receive License: Upon satisfactory resolution of any issues, the license will be granted.
- Compliance with E-waste Management Rules 2016
Registration Requirement: Any used laptops to be imported must also be registered as a “producer” based on these regulations
The registration has to be done online on the official website that is to be developed by the Central Pollution Control Board.
- Extended Producer Responsibility (EPR):
The EPR obligation of importers of used electronic equipment is 100% for the imported material after the end of its lifetime, except if the equipment is re-exported.
This means that they are fully obligated to the process of managing and recycling the laptops imported once they reach their last days.
- Restrictions: Imports are only permitted for laptops that comply with hazardous substances restrictions (like limits on lead, mercury, cadmium etc.)
The laptops must meet Reduction of Hazardous Substances (RoHS) compliance standards
Application fee for a Restricted Import License (Used Import License)
- The fee payable for a Restricted Import License in India is determined from the Cost, Insurance and Freight or CIF value of items.
- NR 1 per thousand of the CIF value with the minimum fee of 500 INR and maximum fee 1 Lakh INR for each application.
- This fee is payable, through the DGFT online system, at the time of applying for the certificate.
Customs Duties and Taxes
- Basic Customs Duty (BCD): Varies based on product classification.
- IGST (Integrated GST): Applied to the transaction value, usually 18%.
- Additional Charges: Handling, cess, or surcharge as applicable.
Validity of Restricted Import License (Used Laptop Import License)
The license is valid for 18 months, with a fee based on the CIF amount.
How Whizseed can help you?
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