Shares of Dixon Technologies Ltd climbed nearly 6 per cent in Thursday’s trade after the government imposed a restriction on import of laptops, tablets and personal computers, with immediate effect. The government said in a notification that the imports would be allowed against a valid licence for restricted imports.
Following the development, the stock rose 5.56 per cent to hit a high of Rs 4,354 on BSE. This was against a half-a-per cent drop in the BSE Sensex.
Dixon Technologies is engaged into electronic manufacturing services (EMS) space in India. It offers design-focused solutions in consumer durables, home appliances, lighting, mobile phones and security devices. It also offers repairing and refurbishment services for a wide range of products including set top boxes, mobile phones and LED TV panels.
The Ministry of Commerce and Industry said in the notification, “Import of laptops, tablets, all-in-one personal computers, and ultra small form factor computers and servers falling under HSN 8741 shall be ‘restricted’ and their import would be allowed against a valid licence for restricted imports.”
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The restrictions will not be applicable on imports under Baggage Rules, the ministry added. Baggage Rules refers to the checks every passenger entering or leaving Indian border has to pass under Customs.
The ministry stated in the notification that there would be an exemption from the Import Licencing requirements for the import of one laptop, tablet, all-in-one personal computer, or ultra small form factor computer, including those purchased from e-commerce portals through post or courier. Imports will be subject to payment of duty as applicable.
There is also an exemption from import licence for 20 such items per consignment for the purpose of R&D, testing, benchmarking, evaluation, repair and re-export, and product development purposes. These imports will be allowed only on the basis that they would be used for the said purposes and not sold. Once the intended purpose is achieved, the ministry added, the products will be destroyed beyond use or re-exported.
“Regarding re-import of goods repaired abroad, licence for Restricted Imports shall not be required for repair and return of said items,” the notification highlighted.
Laptops, tablets, all-in-one personal computers, and ultra small form factor computers and servers, which are an essential part of capital good shall be exempted from the import licencing requirements, the order stated.
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