DGFT Permits Companies To Move IT Assets From SEZs To DTA

New Delhi, Jan 2 (KNN) The Directorate General of Foreign Trade (DGFT) has issued a notification on Monday, granting companies the approval to relocate their used IT assets.

Recent government actions have led to a relaxation of restrictions surrounding the transfer of used IT hardware, such as laptops and desktops, from Special Economic Zones (SEZs) to Domestic Tariff Areas (DTAs).

Typically, SEZs function under customs laws as foreign territories, mandating that companies in Domestic Tariff Areas secure a licence for importing goods from these zones.

DGFT's notification allows companies to move used IT assets, including laptops, desktops, monitors, and printers, from SEZs to DTAs without the need for a licence.

However, this relocation is permitted solely for further use within DTA operations.

The equipment in question must have been in service within SEZ units for a minimum of two years and should not exceed a five-year age limit from the manufacturing date.

The notification specifies that these relaxed do not apply to equipment failing to meet the specified criteria.

Additionally, specific regulatory requirements, such as Compulsory Registration Order (CRO), Restriction of Hazardous Substances (RoHS), and Wireless Planning and Coordination (WPC) import licences, continue to be applicable.

This regulatory adjustment builds upon the government's previous modification in October, which simplified the import process for laptops and computers.

Importers will now be able to bring these IT hardware items into India under a streamlined authorization framework.

These reforms aim to make import operations smoother without causing negative effects on market dynamics or introducing excessive bureaucratic obstacles.

(KNN Bureau)