A day following an increase in import duty on gold from 6% to 15% by the Finance Ministry to discourage inflows, the Directorate General of Foreign Trade (DGFT) has tightened regulations for duty-free gold imports in the gems and jewellery sector. This move involves the introduction of five new restrictive notes under the Standard Input Output Norms (SION).
According to a public notice issued by the DGFT, “Five notes are inserted under SIONs…prescribing conditions for the issuance and monitoring of Advance Authorisations for import of gold.”
The Advance Authorisation (AA) scheme allows exporters in the gems and jewellery sector to import gold without duty, provided it is exclusively used for manufacturing jewellery intended for export. SIONs determine the amount of gold necessary to produce a specific quantity of jewellery.
The revised guidelines impose a strict limit on gold import authorisations, capping them at a maximum of 100 kilograms. Furthermore, the DGFT mandates a physical inspection of manufacturing facilities for all first-time applicants to verify operational status and capacity. Subsequent licenses will only be considered when exporters have fulfilled at least 50% of export obligations from previous authorisations.
Authorization holders are required to submit fortnightly performance reports certified by an independent Chartered Accountant to enhance compliance.
Moreover, regional authorities are tasked with submitting monthly consolidated reports to DGFT headquarters, detailing the issuance of Advance Authorisations and associated import/export transactions of gold. This measure aims to facilitate centralized monitoring and oversight of policy implementation.
The increase in gold import duty is designed to curb imports, address a growing trade deficit, and stabilize the Rupee amid escalating tensions in West Asia. The government is focused on preserving foreign exchange for essential energy and defense expenditures.
Published on May 14, 2026.
