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In a significant development, the Directorate General of Foreign Trade (DGFT) has recently announced a relaxation of restrictions concerning the transfer of used IT hardware goods from Special Economic Zones (SEZs) to areas outside these duty-free enclaves or domestic tariff areas (DTAs).

SEZs, treated as foreign territories under customs laws, impose stringent regulations on the movement of goods into domestic markets, requiring licenses for companies operating in the domestic tariff area.

The latest notification from DGFT outlines that companies are now permitted to transfer used IT assets, encompassing laptops, desktops, monitors, and printers, from SEZs to DTAs without the need for a license. However, this allowance is specifically granted for the purpose of further utilization in their DTA operations. Notably, the eased regulations come with specific conditions: the equipment must have a minimum of two years of use within SEZ units and should not be older than five years from the manufacturing date.

Formally communicated by the DGFT, the import policy for used IT assets from SEZ to DTA has been revised, allowing SEZ-based companies closing down operations and relocating to the DTA to import these items without a license, provided the equipment is not older than five years from the manufacturing date.

Exceptions to the relaxed regulations exist for SEZ units with second-hand or used equipment in operation for less than two years; such items cannot be shifted to DTAs without a license for restricted import.

Emphasising strict adherence to regulatory requirements, the DGFT highlights that these relaxations are subject to conditions, including compliance with the Compulsory Registration Order (CRO), Restriction of Hazardous Substances (RoHS), and WPC (Wireless Planning and Coordination) import licenses. Importantly, these exemptions apply only if no previous exemption has been availed from these regulatory prerequisites. Companies are urged to ensure compliance with these stipulations to benefit from the eased regulations set forth by the DGFT.

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