New Delhi: The United States has gone to the World Trade Organisation (WTO) with pointed questions directed at India regarding its restrictions on the import of laptops and other electronics, seeking basic details about the decision, documents reveal.
Among the questions asked were why India took such a decision, whether it would expand import curbs to other items, on what basis the licences would be issued, and when it would officially inform the relevant WTO committee of its decision.
The Indian government had on 3 August issued a notification that brought the import of laptops, tablets, all-in-one personal computers, and ultra small form factor computers and servers under the category of “restricted” imports and said that companies importing these items would have to apply for a licence to do so.
This was met with stiff resistance from the electronics industry, following which the government said the restrictions — earlier meant to have been effective immediately — would be implemented from 1 November onwards.
The US, in its 18 October submission to the WTO’s Committee on Import Licensing, reviewed by ThePrint, said that although India subsequently said importers of these electronics would simply have to register on an ‘import management system’, the original restrictions and licence requirements still remained.
“The Amendment defines imports of laptops, all-in-one personal computers, ultra-small form factor computers, and servers… as ‘restricted’ and provides that their import would require a valid Licence for Restricted Imports,” the US said.
“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,” it added. “However, no change was made to the original notification.”
ThePrint had previously reported how changes the government had made to the licensing system for the import of electronics were largely just in nomenclature and that such imports were still restricted, and required government authorisation before they could be done.
This isn’t the first time this year that countries have gone to the WTO with basic questions about India’s trade-related actions. In September, ThePrint had reported that the US, UK, European Union, and several other countries had questioned India about the various bans and restrictions it had imposed on the export of wheat, rice, and onions.
More questions
“What objective is India hoping to achieve through these import licensing requirements,” the US asked in its submission. “Does India intend to expand the use of import licensing beyond the listed products?”
The US further enquired whether India had issued a public notice or had sought public comments before it announced this measure, and also asked when India would notify the Committee on Import Licensing of the steps it had taken.
“Given the measure’s broad scope, a large number of products and volume of trade will be impacted,” the US said. “How will the licences be issued? Will the products be subject to automatic or non-automatic licensing?”
If the licences are to be issued on a non-automatic basis — which means the Indian government would use its discretion to issue them — then on what basis will they be issued, the US further asked.
“What criteria will India use to approve or deny a licence,” it asked in its submission. “Will India prioritise specific industries, sectors, or products? On what basis are these priorities determined? What is the timeframe for issuing a licence for listed products? How will India avoid long or unpredictable delays?”
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