Centre Caps Duty-Free Gold Imports At 100 Kg Per Licence

The Centre has imposed stricter controls on duty-free gold imports under the advance-authorisation scheme for exporters to prevent misuse and protect India’s foreign exchange reserves.

Authorities have now capped duty-free gold imports at 100 kilograms per licence amid concerns regarding the diversion of imported gold into the domestic market for speculative gains.

Under the revised Directorate General of Foreign Trade regulations, first-time applicants seeking permission to import gold must undergo mandatory physical inspections of their manufacturing facilities before receiving authorisation.

The government has also linked fresh import approvals to export performance.

Exporters must now complete at least 50 per cent of obligations under earlier licences before qualifying for additional permissions.

Officials have further intensified monitoring mechanisms. Exporters importing gold under the advance-authorisation scheme must submit performance reports every fortnight.

DGFT regional offices will additionally forward monthly compliance updates to headquarters for centralised supervision.

Authorities aim to strengthen scrutiny over export-oriented jewellery manufacturing operations and prevent possible diversion into local markets.

The government has sharply increased customs duties on precious metals.

Gold and silver import duties now stand at 15 per cent, compared to the earlier 6 per cent. Platinum import duty has also risen from 6.4 per cent to 15.4 per cent.

The revised structure includes a 10 per cent basic customs duty along with a 5 per cent Agriculture Infrastructure and Development Cess on gold and silver imports.

Policymakers introduced the measures to reduce foreign exchange outflows amid rising crude oil prices and global uncertainty linked to the West Asia conflict.

Earlier this month, Prime Minister Narendra Modi urged citizens to avoid non-essential gold purchases and adopt austerity measures to conserve India’s foreign exchange reserves.

Also Read: Jamia Hamdard Signs MoU With NDTL To Advance Anti-Doping Research And Training