FTP opens doors for some second hand goods imports

An employee works inside an engineering goods export unit in the manufacturing hub of Faridabad on the outskirts of New Delhi. File
| Photo Credit: REUTERS

India’s new Foreign Trade Policy (FTP) has adopted a fresh approach to the import of second-hand goods, making it possible to re-export old items after repairing them in the country, and paving the way for the import of used electronics and IT goods, albeit with certain restrictions.

The import policy for second-hand goods in the FTP 2023 outlines a new category of unrestricted imports for goods brought into the country for the purpose of repair, refurbishing, re-conditioning or re-engineering, with an intent to re-export them.

Such imports will be conditional upon importers ensuring that any waste generated during the repair or refurbishing process is treated as per domestic laws and environmental, safety and health norms.

Engineering goods exporters’ body EEPC India’s chief Arun Kumar Garodia told The Hindu that this move will encourage reconditioning and refurbishment activities for re-exports. “This will help in promoting exports of such goods,” he noted.

While the import of second-hand air conditioners, desktop and laptop computers, their refurbished spares, as well as diesel generators, will continue in the ‘restricted’ imports category that require prior authorisation, a new category has been introduced for electronics and IT goods.

“All electronics and IT Goods notified under the Electronics and IT Goods (Requirements of Compulsory Registration) Order, 2012 as amended from time to time” will be importable subject to authorisation, the new policy states. Imports of unregistered products or items that don’t comply with the 2012 order would be prohibited.

“The inclusion of electronic and IT goods under the import policy for second-hand goods would enhance effective control and regulation in relation to import of such goods and prevent unwarranted importation of such second-hand electronic goods into India proving detrimental to the indigenous markets,” said Siddharth Surana, Director, RSM India.

Rumki Majumdar, economist at Deloitte India said this move must be viewed in light of the government’s vision for large-scale electronic manufacturing to realise the $1 trillion goods export target by 2030. “Allowing the import of second-hand goods of electronics and IT and goods for repair/refurbishing, will help reduce cost pressures in this booming segment,” she said.