GOVT SIMPLIFIES TRANSFER FROM SEZS TO DOMESTIC MARKETS

India permits SEZ companies to move used IT assets to DTAs without a license, under conditions of a minimum two-year usage in SEZ units and equipment not exceeding five years from manufacturing

In a recent move, the Indian government has eased restrictions on the movement of used IT hardware goods, including laptops, desktops, monitors, and printers, by companies operating in special economic zones (SEZs). SEZs are treated as foreign territories for customs laws, and bringing goods from these zones into the domestic tariff area (DTA) requires an import license.

According to a notification from the Directorate General of Foreign Trade (DGFT), companies are now allowed to shift used IT assets from SEZs to DTAs without the need for a license, but only for the purpose of further use in their DTA operations. However, certain conditions must be met for this relaxation to apply. The equipment, including laptops, desktops, monitors, and printers, should have been used in SEZ units for a minimum of two years and should not be older than five years from the date of manufacturing. The import policy specifically addresses cases where a SEZ unit is closing down its operations and relocating to the DTA. In such instances, the import of these used IT items is permitted without a license, provided the products are not older than five years from the manufacturing date.