Duty-Free Gold Import Policy Revised With Quantity Limits and Inspections

The government has introduced new restrictions on duty-free gold imports under the Advance Authorisation Scheme by capping the permissible quantity at 100 kilograms.

In a public notice issued on Thursday, the Directorate General of Foreign Trade (DGFT) stated that Advance Authorisations for the import of gold will now be issued subject to a maximum remissible quantity of 100 kilograms.

The move marks a significant policy change, as there was previously no quantity limit on gold imports under the scheme. The Advance Authorisation Scheme permits exporters to import raw materials and inputs without paying customs duty, provided they are used in the production of export goods.

As part of the revised framework, the DGFT has also mandated physical inspections of manufacturing facilities for all first-time applicants. The inspections are intended to verify operational status, production capability, and manufacturing infrastructure before approvals are granted.

Additionally, the DGFT stated that subsequent Advance Authorisations for gold imports will only be considered after exporters fulfil at least 50 percent of their export obligations under the scheme.

The trade authority further directed regional offices to submit monthly reports to the DGFT containing details related to the issuance of Advance Authorisations for gold imports.

Industry observers believe the new measures are aimed at strengthening oversight, preventing misuse of the scheme, and ensuring that duty-free imports are genuinely linked to export-oriented manufacturing activities.

India is one of the world’s largest consumers and importers of gold, with the jewellery sector playing a major role in exports and employment generation. The latest policy changes are expected to increase regulatory scrutiny while encouraging greater compliance among exporters.