Government Imposes Import Restrictions on Gold: 100 kg Cap Under Advance Authorisation with Stricter Compliance Measures

The Indian government has introduced new import restrictions on gold, capping the maximum permissible quantity at 100 kg under the Advance Authorisation scheme. 

This move is aimed at regulating gold imports and ensuring compliance with export obligations. 

Advance Authorisation Limitations 

Under the new policy, the Advance Authorisation for importing gold is limited to 100 kg. This restriction is part of a broader strategy to manage the inflow of gold into the country and to ensure that imports align with export commitments. 

First-time applicants for Advance Authorisation will undergo a mandatory physical inspection of their manufacturing facilities.  

This step is crucial to verify the existence, capacity, and operational status of the facility, ensuring that the applicant is capable of fulfilling the export obligations. 

Compliance and Monitoring Measures 

Subsequent applications for Advance Authorisation will only be considered if at least 50% of the export obligation from previous authorisations has been fulfilled.  

This ensures a progressive compliance framework and continuous monitoring of export activities. 

Advance Authorisation holders are required to submit a fortnightly performance report to the concerned Regional Authority.  

This report, certified by an independent Chartered Accountant, will detail gold imports and exports, facilitating effective oversight. 

Read More: New Import Duties Could Drive Demand for Dubai Gold, Says GTRI! 

Centralised Oversight by DGFT 

The Regional Authorities are tasked with submitting a monthly consolidated report to the Director General of Foreign Trade (DGFT) Headquarters.  

This report will contain details of the issuance of Advance Authorisations and corresponding import/export transactions, enabling centralised monitoring and policy oversight. 

Conclusion 

The new import restrictions on gold, with a cap of 100 kg under Advance Authorisation, reflect the government's intent to regulate gold imports and ensure compliance with export obligations. The introduction of stringent monitoring measures underscores the importance of maintaining a balanced trade environment. 

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