Kamal Ghorui
The government has capped gold imports under the Advance Authorisation scheme at 100 kilograms and tightened compliance and monitoring norms for importers in the gems and jewellery sector, according to a DGFT notification issued on Thursday.The Directorate General of Foreign Trade (DGFT) inserted five new notes under Standard Input Output Norms (SIONS) M-1 to M-8 of the Handbook of Procedures 2023 with immediate effect.“Advance Authorisation (AA) for import of gold shall be issued, subject to a maximum permissible quantity limit of 100 kilograms,” the notification said.The notification also introduced stricter checks for first-time applicants seeking permission to import gold under the scheme.“In case of application for Advance Authorisation 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,” it said.The government has also linked future import approvals to export performance.“Any subsequent Advance Authorisation for the import of gold, shall be considered for issuance only upon fulfilment of at least 50% of the export obligation prescribed under the preceding Advance Authorisations for gold,” the notification said.To strengthen oversight, Advance Authorisation holders will now have to submit fortnightly performance reports certified by an independent chartered accountant detailing gold imports and exports undertaken under the authorisation.Regional authorities will also submit monthly consolidated reports to DGFT headquarters containing details related to issuance of authorisations and corresponding gold import-export transactions.The Advance Authorisation scheme allows duty-free import of inputs used for export products and is widely utilised by exporters in the gems and jewellery sector.The latest restrictions come a day after the government raised import duties on gold and silver to 15 per cent from 6 per cent, as part of efforts to curb non-essential imports and ease pressure on foreign exchange reserves amid elevated crude oil prices and global uncertainty. India imports nearly all of its gold requirement, making bullion purchases a major contributor to the country’s import bill during periods of high demand and rising prices.The government had also recently imposed a 3 per cent Integrated GST (IGST) on gold and silver imports, a move that temporarily disrupted imports by banks and contributed to a sharp fall in bullion shipments in April.
