Overview of Electronic Import License

Electronic items have emerged as a significant component in India's merchandise imports. It has been driven not only by new electronic items but also by refurbished ones. Significant elements in the import segment of international electronic trade include telecom instruments, machinery, and gadgets which have high popularity among domestic consumers. India is in Free Trade Agreements (FTA) with many countries. The country has bilateral trade agreements with Japan, Singapore, etc., and multilateral trade agreements with SAARC and ASEAN member nations. These agreements are intended to benefit importers of Electronic items. There are specific rules that govern the import of electronics in India. Getting an electronic import license is one of the many rules defined for the process.

However, it must be noted that importing new electronics into India has a defined procedure, but things are a bit complex for refurbished electronics. The government has relatively strict policies to prevent the entry of e-waste disguised as usable products. The import of electronic items (new as well as second-hand), whether or not refurbished, repaired, or reconditioned, that have not been notified under the "Electronics and Information Technology Goods" (Requirement of Compulsory Registration) is prohibited. This prohibition continues unless the items are registered with the Bureau of Indian Standards (BIS) and comply with the 'Labelling Requirements' published by BIS or on exemption given by the Ministry of Electronics and Information Technology (MeitY). If any prohibited goods reach Customs Ports, the Customs Authorities have the power to dispose of the goods as scrap. Therefore, proper guidance and assistance from market experts can not only streamline the electronic import license process for the importers but will also help avoid any trouble in future.

Role of EPR Authorisation in obtaining Electronic Import License

The E-waste Management Rules identified Producers, Importers and Brand Owners (PIBO) that introduce Electronics and Electrical Equipment (EEE) in India as the entities responsible for disposal of the waste generated by their products. Importers not only have to take prior Extended Producer Responsibility (EPR)authorisation from CPCB but submit an action plan showing how theyseek to fulfil their responsibility.

According to an estimate, by 2030, the increased use of EEE products and growing demand for green technologies will boost the import of electronic items. Through the introduction of EPR for importers in the E-waste Management Rules, the government has tried to define the responsibilities of importers under the Polluter Pays Principle.Thus, obtaining an electronic import license also becomes quite important. However, the importer may take the services of the Producer Responsibility Organisation (PRO),which undertakes the responsibility for the collection and recycling of waste generated from the end of the life of the products imported and help the importers achieve collection targets, setting up collection points, carrying awareness programs, etc.

Formalities for Electronic Import License

The following permits will be required when seeking an electronic import licence -

Registration of the Business

Registering the import business with appropriate authorities is essential to give it a legal identity. A legal entity is required for any business, even if you are not doing the import or export business in India.

Goods and Services Tax Identification Number (GSTIN)

Itis a 15-digit PAN-based unique identification number allotted to every registered person under GST. In contrast, importers must fill the Bill of Entry with the Customs Department while importing goods. The Central Board of Indirect Taxes & Customs (CBIC) made it mandatory to mention GSTIN in import and export documents from 15 February 2020. After all this, one must apply for the GSTIN for an electronic import license.

Importer Exporter Code Registration

The Importer Exporter Code (IEC) is a 10-digit number that permits any Indian business entity to seek international trade from India. Sometimes, the PAN number can be used in place of IEC. Getting IEC is also essential in getting an electronic import licence in India.

Documents required

• Passport photo of all partners or directors signatory on the application
• PAN in the name of the company/LLP
•  PAN card, voter ID/passport/ driving license as an ID proof of authorised signatory
• Proof of business address
• Certificate of incorporation

• A bank certificate or a cancelled cheque showing the account holder's name and account number
• Copy of Partnership Deed

EPR Certificate/Authorisation

Targeted collection and recycling have been made mandatory under the E-waste Management Rules. The PIBOs must comply with the EPR obligations if they import any new or refurbished electronic products in India. Importers of EEE items for sale in the country must have an EPR certificate issued by the Central Pollution Control Board (CPCB). An importer can either fulfil its EPR through the take-back system or by setting up collection centres to channel e-waste generated by the 'end of life' products to authorised dismantlers/recyclers. However, when applying, they must provide a comprehensive Extended Producer Responsibility plan for the CPCB.

Documents required

• GST Certificate 
• Importer Exporter Code (IEC) 

• Ownership documents of the site (rent or lease proof) 
• Memorandum of Association (MoA) 
• Details of imported EEE like the code as per the E-Waste Management Rules, quantity imported and so on
• Form 1 for EPR authorisation 
• Copy of permission from the ministry for selling their product

• Copy of agreement with dealers, recyclers, collection centre, and TSDFs
• Copy of trade licence issued by Directorate General of Foreign Trade 

• Self-declaration, including the importer's name, authorised person, brand name and contact details

Permission from MoEF&CC

The Ministry of Environment, Forest and Climate Change (MoEF&CC) issues permission in the form of an electronic import license/authorisation to the importer who wishes to import old or used electronic itemsconsidered hazardousunder theHazardous Waste Management Rules. Such electronics can be imported only after inspection and approval by customs authorities.

Documents Needed for Import License 

The following documents are required for a license to import hazardous waste -

• Import Code issued by the Directorate General of Foreign Trade
• Certificate of GST
• Identity proof
• Copy of address proof
• Details of the waste to be imported to India
• Copy of purchase order/invoice
• Details of actual user
• Notarised MOU for selling imported scraps to actual user
• Partnership Deed/AOA (if applicable)

Overview of Electronics Import Market

According to some experts,India's import policies are driven by the domestic market rather than opportunities in global markets. In 2021, India's electrical and electronic equipment imports were US$56.73 billion. The domestic demand for electronic goods is estimated to reach more than $300 billion by 2026, which will require importing enormous amounts of electronic goods. This also presents a substantial opportunity in specific consumer electronics segments and will require importers to fulfil this huge demand. Doing sofor various electronic items where the domestic production capacity is limited or non-existent is quite challenging.Therefore, eventually, one needs to import EEE. For doing so, getting an electronic import license is necessary.

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