Govt eases norms to move used IT hardware from SEZs to DTAs

The government has recently eased restrictions concerning the transfer of used IT hardware, such as laptops and desktops, from Special Economic Zones (SEZs) to Domestic Tariff Areas (DTAs). Typically, SEZs operate under customs laws that treat them as foreign territories, necessitating a licence for companies in the Domestic Tariff Areas to import goods from these zones.

The Directorate General of Foreign Trade (DGFT) issued a notification permitting companies to relocate used IT assets— including laptops, desktops, monitors, and printers—from SEZs to DTAs without the prerequisite of a licence, but solely for further use within the DTA operations. However, the equipment in question must have served within SEZ units for a minimum of two years and should not exceed a five-year age limit from the manufacturing date.

The notification clarified that such relaxed measures would not apply to equipment used for less than two years in SEZs or those failing to meet the age criteria. Moreover, specific regulatory requirements such as Compulsory Registration Order (CRO), Restriction of Hazardous Substances (RoHS), and Wireless Planning and Coordination (WPC) import licences remain applicable.

This regulatory adjustment follows the government's prior modification in October, which streamlined the import process for laptops and computers, enabling importers to bring these IT hardware items into India under a simplified 'authorisation' framework. The overarching aim of these reforms is to facilitate smoother import operations without adversely affecting market dynamics or imposing excessive bureaucratic hurdles.

(With PTI inputs)