India Caps Gold Imports at 100kg in Advance Scheme

India's Directorate General of Foreign Trade imposed a 100-kilogram limit on gold imports under the Advance Authorisation scheme on May 14, introducing stricter compliance measures to enhance monitoring of duty-free shipments for jewellery exporters.

The public notice, issued in New Delhi, caps each Advance Authorisation at a maximum permissible quantity of 100 kilograms of gold. Previously, no such quantitative restriction existed under the scheme, which allows exporters to import raw materials like gold without customs duties, provided the inputs are used in products destined for export. The changes also require mandatory physical inspections of manufacturing facilities for first-time applicants to verify their existence, capacity and operational status. Subsequent authorisations will only be granted after exporters fulfil at least 50 percent of export obligations from prior licences.

Authorisation holders must now submit fortnightly performance reports, certified by an independent chartered accountant, detailing gold imports and exports. Regional authorities are required to provide monthly consolidated reports to DGFT headquarters for centralised oversight.