After hike in duty on gold imports, rules for duty-free gold imports tightened
Following an increase in the duty levied on gold imports, the Government has now also tightened the regulations governing duty-free gold imports.
The Directorate General of Foreign Trade (DGFT) has issued new guidelines for gold jewelry exporters, under which several rules related to imports and monitoring have been revised.
Maximum of 100 kg of gold may now be imported under a single license
According to the new regulations, a maximum of 100 kilograms of gold may now be imported under a single license. Previously, the rules regarding this limit were considered relatively relaxed.
Inspection of factory premises and facility centers mandatory
The DGFT has stated that a mandatory inspection of factory premises and facility centers will be conducted for new applicants. The objective of this measure is to ensure that duty-free gold is utilized exclusively for designated export-related activities.
New conditions imposed on existing exporters
New conditions have also been imposed on existing gold exporters. To obtain fresh authorization, they must fulfill at least 50 percent of their previous export obligations. This implies that companies that have failed to meet their previously stipulated export targets may face difficulties in securing new approvals.
Closer oversight of utilization of imported gold
Furthermore, exporters are now required to submit reports every 15 days. The government asserts that this measure will further strengthen the monitoring framework, enabling closer oversight of the utilization of imported gold.
Greater control over gold imports
Experts believe that the government's primary focus is on exercising greater control over gold imports and reinforcing regulatory compliance. In recent months, concerns regarding gold imports and the widening trade deficit have intensified.
Recently, India had raised the import duty on gold and silver from 6 percent to 15 percent.