India Tightens Gold Import Rules with 100KG Limit and Enhanced Monitoring The Indian government has introduced stricter regulations to control the rising gold imports, implementing a 100-kilogram limit and mandatory inspections to ensure compliance. These measures, announced by the Directorate General of Foreign Trade (DGFT), aim to curb speculative activities and enhance transparency in the gold trade. The new rules apply to the Advance Authorisation Scheme, which allows businesses to import gold for manufacturing purposes. Under the updated guidelines, any company or unit operating under the Advance Authorisation Scheme can now import a maximum of 100 kilograms of gold. This cap is designed to prevent excessive imports that could destabilize the domestic market. Additionally, the government has mandated physical inspections for new applicants, requiring regional authorities to verify the existence and operational status of manufacturing units. This step ensures that imported gold is genuinely used for production rather than being resold in the domestic market. The rules also emphasize accountability by linking future import permissions to past export obligations. Companies must fulfill at least 50% of their previously mandated export commitments before being eligible for a new import authorization. This requirement aims to prevent the misuse of import licenses for speculative trading. To further strengthen oversight, the DGFT has imposed a rigorous monitoring system. Authorized importers are now required to submit performance reports every 15 days, which must be audited by a certified chartered accountant. These reports will detail both imports and exports, ensuring transparency in the supply chain.#india #director_general_of_foreign_trade #dgft #advance_authorisation_scheme #gold_import_rules
Modi Government Tightens Rules on Duty-Free Gold Imports The Indian government has imposed stricter regulations on duty-free gold imports, setting a cap of 100 kilograms per license. This decision follows the recent increase in import duty on gold from 6% to 15%, which was announced the previous day. The move is part of broader efforts to curb record-high import bills and manage the country’s foreign exchange reserves. The Directorate General of Foreign Trade (DGFT) has introduced five new compliance rules under the Standard Input Output Norms (SIONs) M1 to M8. These rules apply to the Advance Authorization (AA) scheme, which allows duty-free imports of gold. Under the new regulations, each license can now import a maximum of 100 kilograms of gold duty-free. For new applicants, the DGFT requires mandatory physical inspections of their factories by regional authorities. These inspections will verify the existence of the unit, its production capacity, and operational status. Existing license holders also face revised terms. They must fulfill at least 50% of their export obligations under their previous licenses before being eligible for a new authorization. Additionally, AA holders are required to submit reports every 15 days to their regional offices, certified by a chartered accountant. These reports must detail all gold imports and exports. Regional offices, in turn, must provide monthly reports to the DGFT headquarters to ensure centralized oversight of the system. Prime Minister Narendra Modi has emphasized the need for frugality amid tensions in West Asia, urging citizens to conserve foreign exchange reserves.#india #narendra_modi #director_general_of_foreign_trade #dgft #standard_input_output_norms
