Apple, Samsung pause laptop imports in India after sudden restrictions - report
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Apple (NASDAQ:AAPL), Samsung Electronics (OTCPK:SSNLF) and HP (NYSE:HPQ) are some of the companies pausing new imports of laptops and tablets to India after the country banned inbound shipments without a license, Bloomberg News reported.
On Thursday the Indian government imposed restrictions on import of laptops, tablets, all-in-one personal computers and ultra-small computers and servers, effect immediately.
Any company which plans to bring laptops and computers for sale in India will now have to seek permission or license from the government for their incoming shipments.
The Directorate General of Foreign Trade (DGFT) said that exemption from import licensing is given to up to 20 items per consignment for R&D, testing, benchmarking and evaluation, repair and return and product development purposes.
The move is aimed at promoting domestic manufacturing of these products under a recently renewed production-linked incentive (PLI) scheme for IT hardware. The last date to apply for the so-called production-linked incentives in this product category is Aug. 30.
The action is also intended to curb imports of these goods from countries like China and South Korea, NDTV reported citing news agency Press Trust of India.
Laptop makers had been bracing for some government action, however the sudden licensing imposition has caught the industry off-guard, the Bloomberg report added citing people with knowledge of the matter.
Companies are now engaging with the government on how to quickly get licenses, ahead of festival seasons in the coming months, according to the sources. It is not clear how long it will take for the companies to get licenses, but the halt is already disrupting a multibillion-dollar trade in foreign PCs.
These requirements may pose additional hurdles for manufacturers who are already facing global excess inventory and triggers to restart sales growth. This could lead to delayed launches or even product shortages in India, which is still largely reliant on imports from overseas, the report added.
The Indian government is currently seeking applications for INR 170B financial incentive plan to attract manufacturers of laptops, tablets and other hardware as companies start to look beyond China for their supply chain needs.
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