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New Delhi [India], May 14 (ANI): The Directorate General of Foreign Trade (DGFT) has tightened monitoring of duty-free gold imports under the Advance Authorization (AA) scheme, capping imports at 100 kilograms per authorization and introducing stricter compliance checks, according to a Commerce Ministry notification issued Thursday.
The move comes days after Prime Minister Narendra Modi urged citizens to reduce gold purchases and channel savings toward productive investments amid concerns over rising gold imports and pressure on India’s trade balance.
In a public notice dated May 14, the DGFT said it had inserted five new notes under the Standard Input Output Norms (SIONs) for gems and jewelry exports “with immediate effect.”
The notice stated, “Advance Authorization (AA) for import of gold shall be issued, subject to a maximum permissible quantity limit of 100 kilograms.”
Advance Authorization is a scheme under the Foreign Trade Policy that allows exporters to import raw materials such as gold without paying customs duties, provided the imported material is used for manufacturing export products.
The new rules are aimed at strengthening compliance and monitoring within the gold import ecosystem.
The DGFT further stated, “In case of application for Advance Authorization by a first-time applicant, a mandatory physical inspection of the applicant’s manufacturing facility shall be undertaken by the concerned regional authority to verify the existence, capacity and operational status of the manufacturing facility.”
The government has also linked fresh approvals to export performance.
According to the notice, “Any subsequent Advance Authorization for the import of gold shall be considered for issuance only upon fulfillment of at least 50% of the export obligation prescribed under the preceding Advance Authorizations for gold.”
This means exporters will need to complete at least half of their export commitments before receiving another gold import approval.
The DGFT has also mandated tighter reporting norms for companies importing gold under the scheme.
“The Advance Authorization holder shall submit a fortnightly performance report to the concerned Regional Authority (RA), duly certified by an independent chartered accountant certifying gold imports and exports undertaken under the authorization,” the notice said.
Additionally, regional authorities have been directed to send monthly consolidated reports to DGFT headquarters for “centralized monitoring and policy oversight.”
India is among the world’s largest importers of gold, and gold imports significantly impact the country’s current account deficit and foreign exchange outflows.
The public notice said the five new notes have been inserted under SIONs M-1 to M-8 of the Handbook of Procedures 2023, “prescribing conditions for the issuance and monitoring of Advance Authorizations for import of gold.” (ANI)
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