Short Article

18-08-2023 | 10:06 AM

Harmonised System of Nomenclature (HSN)

The Government of India had imposed restrictions on imports of laptops, all-in-one personal computers and tablets under HSN Code 8471. Though, the restrictions have been lifted and will be implemented from November 1, 2023.

Key Highlights:

• The restrictions had been imposed under HSN Code 8471 on seven categories of electronic gadgets.
• The Harmonised System of Nomenclature (HSN) code is a classification system used to identify products for taxation purposes.
• HSN Code 8471 is used to identify devices that are designed to perform data processing tasks.
• With the curbing imports of these devices, the government aims to reduce reliance on foreign markets and encourage the growth of local manufacturing capabilities.
• This move will give a direct boost to the Center’s Production-Linked Incentive (PLI) scheme for IT hardware.
• The highest share of imports is in the category of personal computers including laptops, and palmtops, under which imports from China stood at $558.36 million in April-May this year as against $618.26 million in the year-ago period. China accounts for roughly 70-80 per cent of the share of India’s imports of personal computers, laptops.
• People who travel abroad can bring along one laptop, tablet, all-in-one personal computer, or ultra-small form factor computer in their baggage without import restrictions when returning to India. The exemption applies to items bought from e-commerce platforms and shipped via post or courier.
• An exemption is also provided for up to 20 items per shipment, particularly for research, testing, evaluation, repair, re-export, and product development. The imports are permitted under the condition that they are used solely for their stated purposes and not sold.