The government has implemented strict new regulations for gold imports under advance authorisation, capping each licence at 100 kg according to the Directorate General of Foreign Trade (DGFT). As reported by The Economic Times, importers must now fulfil 50 per cent of the committed export obligation under a licence before receiving subsequent advance authorisation. These changes represent a significant tightening of gold import monitoring norms by the government, with the new conditions inserted in the Handbook of Procedures 2023 and applying with immediate effect across all SIONs from M1 to M8 in the gems and jewellery product group.
The new regulations introduce mandatory physical inspection requirements for first-time advance authorisation applicants, as reported by The Economic Times. Regional authorities will now require fortnightly performance reports from advance authorisation holders, certified by an independent Chartered Accountant, detailing gold imports and exports undertaken under the authorisation. For repeat applicants, the government has introduced a new compliance threshold: any subsequent gold import authorisation will be issued only after at least 50 per cent of the export obligation prescribed under a preceding authorisation has been fulfilled. This is intended to ensure progressive compliance and prevent accumulation of unfulfilled obligations under the scheme.
The DGFT has introduced five new compliance notes under Standard Input Output Norms (SIONs) M1 to M8 for the Gems and Jewellery Product Group, as reported by The Economic Times. For new applicants, manufacturing facilities will undergo mandatory physical inspection by concerned regional authorities before approval is granted, with authorities verifying the existence, operational capacity and manufacturing status of the unit before issuing the licence. Companies importing gold under the AA scheme will now submit fortnightly performance reports certified by an independent Chartered Accountant, with regional authorities additionally required to submit consolidated monthly reports to DGFT headquarters covering all authorisations issued and related import-export transactions.
These restrictions come after the government raised gold import duty from 6 per cent to 15 per cent to discourage precious metal imports, as reported by The Economic Times. According to the latest reports, the finance ministry notified the changes through multiple customs notifications on 12 May, with the revised rates coming into effect on 13 May. The government has increased the basic customs duty on several categories of gold and silver imports to 10 per cent from 5 per cent, while the Agriculture Infrastructure and Development Cess (AIDC) of 5% continues, taking the total effective import tax to 15 per cent. India's gold imports had surged 24 per cent to $71.98 billion in FY26, representing an all-time high despite shipments in volume terms dipping 4.76 per cent to 721.03 tonnes. The gems and jewellery industry had flagged concerns about the duty hike, with the All India Gems and Jewellery Council warning that the increase could give rise to a grey market and spur smuggling.
