IMPORT LICENSING SYSTEM OF INDIA

QUESTIONS FROM THE united states TO INDIA

The following communication, dated 18 October 2023, is being circulated at the request of the delegation of the United States.

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The United States of America understands that on 3 August 2023, India published a notification No. 23/2023 "Amendment in Import Policy of Items under HSN 8471 of Chapter 84 of Schedule-I (Import Policy) of ITC (HS)". The Amendment defines imports of laptops, all-in-one personal computers, ultra-small form factor computers, and servers classified under HS 8741 as "restricted" and provides that their import would require a valid License for Restricted Imports as of 1 November 2024. On 26 September 2023, Indian officials announced that on 1 November 2023, importers will only be required to register on an "import management system" in order to import regulated products. However, no change was made to the original notification.

a._       What objective is India hoping to achieve through these import licensing requirements?

b._       Does India intend to expand the use of import licensing beyond the listed products?

c._         Did India carry out a public notice and comment period ahead of publication of this measure? If so, please describe your process. 

d._       Please explain when India will notify this measure to the Committee on Import Licensing.

Given the measure's broad scope, a large number of products and volume of trade will be impacted.

a._        How will the licenses be issued? Will the products be subject to automatic or non-automatic licensing?

b._        If non-automatic, please explain:

1._         What criteria will India use to approve or deny a license? Will India prioritize specific industries, sectors, or products? On what basis are these priorities determined?

2._         What is the timeframe for issuing a license for listed products? How will India avoid long or unpredictable delays?

3._         Please describe the process for importer to apply for a license. How can importers seek information about the status of their request for a license or make corrections to license applications? What recourse will importers have if a license is denied?

c._         We understand that India is considering carrying out an initial monitoring phase for this measure. Please explain:

1._         What is the timeframe for the monitoring phase? Will India delay full implementation of the measure during this time?

2._         Which data will importers be required to provide and how does India plan to use this information? Will the information impact the process for granting licenses? Is India considering the use of quantitative restrictions based on the information supplied?

d._        The measure specifies that "exemption is also provided where the item is an essential part of a capital good." How does India intend to administer this exemption?

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