The Directorate General of Foreign Trade (DGFT) has notified the policy ...

5 January 2024 Government eases policy for import of used IT assets from SEZ to DTA, subject to conditions The Directorate General of Foreign Trade (DGFT) has notified the policy for import of "Used IT Assets (Laptops, desktops, monitors, printers)" from the Special Economic Zone (SEZ) to the Domestic Tariff Area (DTA), vide Notification No. 56/2023 dated 1 January 2024. As per the said policy, the import of used IT assets shall be subject to a license for restricted imports, except where they fulfill the below-mentioned criteria: The used IT assets are moved from the SEZ for their further use in DTA operations only; given that there is a minimum usage of two years in the SEZ area and these goods are not older than five years from the date of manufacturing. Where the SEZ unit is closing down its operations and relocating to the DTA, the import of used IT assets from SEZ to DTA is allowed without a license, given that the goods are not older than five years from the date of manufacturing. However, IT assets that have entered the SEZ area in second hand /used/old condition and have been used for less than two years are not covered. The above relaxation from import license shall be applicable given that no exemption from any regulatory requirements [i.e. Compulsory Registration Order (CRO), Wireless Planning & Coordination (WPC), Restriction of Hazardous Substances (RoHS)] was availed at the time of import of these used IT Assets into the SEZ. Our Comments The government has eased the restrictions on shifting of used IT hardware such as desktops, laptops, printers and monitors by the SEZ units for their DTA operations upon closure and relocation to DTA, subject to stipulated conditions. The import of such assets is otherwise permitted only against an authorization/import license, in terms of Para 2.31 of the Foreign Trade Policy. Accordingly, the companies operating in SEZs and looking to either - i) exit from the SEZ scheme or ii) transfer IT assets to their DTA units should ensure compliance with the conditions to avail the benefit of aforesaid relaxation.   Nexdigm  ThinkNext@nexdigm.com | www.nexdigm.com USA | Canada | Poland | UAE | India | Hong Kong | Japan DISCLAIMER This alert contains general information which is provided on an "as is" basis without warranties of any kind, express or implied and is not intended to address any particular situation. The information contained herein may not be comprehensive and should not be construed as specific advice or opinion. This alert should not be substituted for any professional advice or service, and it should not be acted or relied upon or used as a basis for any decision or action that may affect you or your business. It is also expressly clarified that this alert is not intended to be a form of solicitation or invitation or advertisement to create any adviser-client relationship. Whilst every effort has been made to ensure the accuracy of the information contained in this alert, the same cannot be guaranteed. We accept no liability or responsibility to any person for any loss or damage incurred by relying on the information contained in this alert. © 2024 Nexdigm. All rights reserved.