The Centre has capped duty-free gold imports under the advance-authorisation scheme at a maximum of 100 kg per licence in a move aimed at curbing diversion and misuse of imported gold amid concerns over the rising import bill and pressure on foreign exchange reserves.
Under the revised norms issued by the Directorate General of Foreign Trade, first-time applicants seeking permission to import gold will now undergo mandatory physical inspection of their manufacturing units by DGFT officials before authorisation is granted.
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The government has also linked fresh gold import permissions to export performance, making it mandatory for firms to fulfil at least 50% of export obligations under earlier licences before becoming eligible for subsequent authorisations.
As part of tighter monitoring measures, exporters importing gold under the AA scheme will now have to submit fortnightly performance reports, while DGFT regional offices have been directed to send monthly updates to headquarters for centralised oversight of gold imports and exports.
The move is aimed at strengthening scrutiny of duty-free gold imports meant for export-oriented jewellery manufacturing and preventing possible diversion into the domestic market.
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