In a major policy move aimed at tightening regulations on precious metal imports, the Government of India has capped duty-free gold imports at 100 kilograms under the Advance Authorisation Scheme.
The scheme allows jewellery exporters to import raw materials without paying customs duty, provided the imported goods are used for export-oriented production. Earlier, there was no upper limit on gold imports under the scheme.
According to the Directorate General of Foreign Trade (DGFT), exporters applying for duty-free gold imports will now have to comply with stricter conditions. First-time applicants will face mandatory physical inspections, while exporters must fulfil at least 50 per cent of their export obligations before they can receive subsequent authorisations.
The government’s latest decision is expected to strengthen monitoring mechanisms, curb misuse of the scheme, and ensure better compliance within the gems and jewellery sector.
Industry experts believe the revised norms could improve transparency and accountability while balancing the needs of genuine exporters. However, some exporters may face operational challenges due to the tighter import restrictions and compliance requirements.
The move comes amid ongoing efforts by the government to regulate gold imports, manage trade balances, and strengthen oversight in the bullion and jewellery industry.
