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India's Insane Foreign Trade Policies against the PC Industry has Top US Firms from Apple to Intel Protesting to the Department of Commerce

1 COVER SIMPLY INSANE

On August third, via Notification No. 23/2023, India’s Directorate General of Foreign Trade (DGFT) imposed immediate restrictions on importing seven items, including laptops, tablets, and personal computers (PCs) falling under HSN 8741 category. The import of these restricted items would now require a valid license. On August fourth, the Indian government announced it would defer the implementation of import restrictions on laptops, tablets, personal computers (PCs), and other electronic items falling under the HSN 8741 category to October 31, 2023.

This was a stunning announcement and for a company like Apple who is expanding production of iPhone, starting to produce AirPods and recently opened expensive flagship stores in India. This was a slap in Apple's face who has invested tens of millions in India in recent years. If it stands, Apple Stores won't be able to sell MacBooks and Mac desktops and iPads. Why didn't the government tell Apple about this prior to their stores being planned and built? An Apple Store only selling iPhones would be a disaster.

Today we're learning that A broad coalition of America’s largest businesses from Apple Inc. to Intel Corp. protested the abrupt way in which India introduced tech import restrictions this month, saying the surprise move will damage New Delhi’s ambitions to become a global manufacturing hub and harm consumers.

In a letter to US officials this week, eight American trade groups comprising the biggest players in technology and manufacturing asked the Department of Commerce, US Trade Representative and government more broadly to urge India to reconsider the policy. The South Asian nation plans to impose a new license requirement for tech imports from Nov. 1, spanning everything from laptops and tablets to servers and components for datacenters.

The move “could significantly disrupt trade, hamper efforts to more closely integrate India into global supply chains, and harm businesses and consumers in both countries,” the trade groups said in a joint memo.  

The licensing regime was initially implemented with immediate effect earlier this month, before authorities allowed a three-month reprieve to let companies obtain the required licensing.

US industry groups including the Information Technology Industry Council, the National Association of Manufacturers and the Semiconductor Industry Association raised several objections to the planned licensing rules. Any barrier to trade could affect the shipment of US-made computers and electronics into India, which in turn could complicate the ability of businesses in the country, whether American or Indian, to run and expand their operations.

India’s reliability as a trade and supply chain partner is put into question by steps that inhibit the free flow of goods, according to the document. For more, read the full report on BNN Bloomberg.

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