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
