The Directorate General of Foreign Trade (DGFT) has, through notification number 38/2023 dated October 19, 2023, officially announced the exemption of imports of IT Hardware produced within Special Economic Zone (SEZ) facilities to the Domestic Tariff Area (DTA) from the requirement of import authorization. The notification further specified that imports conducted by private entities, acting on behalf of Central and State Government Entities for Defense and Security objectives, will also be exempt from the necessity of an Import Authorization.
“In exercise of powers conferred by Section 3 and Section 5 of Foreign Trade (Development & Regulation) Act, 1992, read with paragraph 1.02 and 2.01 of the Foreign Trade Policy, 2023, as amended from time to time, and referring to previous Notifications 23/2023 dated 03.08.2023 & Notification 26/2023 dated 04.08.2023, the following changes in Import Policy Conditions are hereby notified:
vii. IT hardware restricted for Import vide Notification 23/2023 dated 03.08.2023 which are manufactured in Special Economic Zones (SEZ) may be imported into Domestic Tariff Area (DTA) without an Import Authorization, on payment of applicable duties (if any). Activities such as re-packing, labelling, refurbishing, testing, and calibration alone within the SEZ are not considered as manufacturing for the purpose of availing this exemption from Import Authorization.
viii. Private entities importing the said IT Hardware for supply to
are exempted from requiring an import authorization. However, these private entities at the time of import, must provide to the Customs Authorities a valid End User Certificate issued by the relevant government entity.
2. Policy Condition 4(iv) of Chapter 84 of Schedule-I of ITC(HS) 2022 is amended as follows —
| Existing Condition | Revised Condition |
| Exemption from import licence is provided for up to 20 such items per consignment for the purpose of R&D, Testing, Benchmarking and Evaluation, repair and re-export, Product Development purposes. Given imports shall be allowed subject to condition that the imported goods shall be used for the stated purposes only and will not be sold. Further, after the intended purpose, the products would either be destroyed beyond use or re-exported. | Exemption from import authorisation is provided up to 20 items per consignment for and R&D, Testing, Benchmarking Evaluation, Product Development purposes. Exemption is further provided for import for repair and/or return and/or replacement of IT Hardware sold earlier as well as re-import of such items repaired abroad on a self-certification basis. |
Effect of the Notification: Import of IT Hardware manufactured in SEZ into DTA shall be exempt from an Import Authorisation. Import by private entities on behalf of Central & State
Government Entities, for Defence & Security purposes, shall be exempt from an Import Authorisation.”
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