The Directorate General of Foreign Trade (DGFT) has issued a notification on October 15, 2020, which has amended the Import Policy of air conditioners with refrigerants and have shifted them from free to the prohibited import item category.

DGFT’s issued notification states that the Import Policy of Air Conditioners with refrigerants under HSN codes 84151010 and 84151090 got amended from Free to Prohibited.

The Indian-Domestic market of air conditioners is assumed to be around $5-6 Billion. The imports ban move of the Central Government comes amid India’s campaign to be self-reliant by promoting domestic manufacturing of such goods.

The Ministry of Commerce and Industry was previewing the non-essential electronic goods since the government decided to push for self-reliance in various sectors this year. Prime Minister Narendra Modi has been singling out the Air conditioners specifically, as an example of a segment where self-reliance was required. He has said in June while discussing the Atma Nirbhar Bharat Abhiyan, “We import more than 30 per cent of our demand for air conditioners. We have to reduce it fast”.

Also, in July the government has imposed restrictions on the imports of various colour TV sets. And now the government has banned the import of air conditioners (ACs) with refrigerants.

With Warm Regards,

CL Bureau.

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