Government Relaxes Curbs, Permits Transfer of Used IT Hardware from SEZs to Domestic Areas

The government has eased restrictions on the transfer of used IT hardware, including laptops, desktops, monitors, and printers, from special economic zones (SEZs) to domestic tariff areas (DTAs). The Directorate General of Foreign Trade (DGFT) issued a notification specifying that companies can now move these assets without a license for further use in their DTA operations, under certain conditions.

The relaxed regulations stipulate that the equipment must have been utilized in SEZ units for a minimum of two years and should not be older than five years from the manufacturing date. This move allows companies in DTAs to import used IT assets without the previously required license, simplifying the process.

The DGFT highlighted that these concessions apply only if no exemption has been availed from regulatory requirements such as Compulsory Registration Order (CRO), Restriction of Hazardous Substances (RoHS), and WPC (Wireless Planning and Coordination) import license.

This development is noteworthy, following the government’s earlier adjustments in October, allowing importers to bring in shipments of IT hardware with a mere ‘authorization,’ streamlining the import management system for laptops, tablets, and computers.