DGFT Tightens Gold Import Rules: 100 kg cap per licence, stricter AA compliance norms

The government has tightened compliance norms for gems and jewellery exporters importing gold under the duty-free scheme, a day after raising import duty on the precious metal to 15 per cent from 6 per cent.

The Directorate General of Foreign Trade (DGFT) issued five new compliance notes under Standard Input Output Norms (SIONs) M1 to M8 for the Gems and Jewellery Product Group. The revised conditions have come into effect immediately and are aimed at strengthening monitoring of duty-free gold imports under the Advance Authorisation (AA) scheme.

Gold imports capped at 100 kg per licence

Under the revised rules, import of gold through Advance Authorisation will now be capped at 100 kilograms per licence.

The DGFT has also introduced stricter checks for first-time applicants. Manufacturing facilities of new applicants will undergo mandatory physical inspection by the concerned regional authority before approval is granted. Authorities will verify the existence, operational capacity and manufacturing status of the unit before issuing the licence.

Export obligations linked to fresh authorisations

For repeat applicants, the government has introduced a new compliance threshold. Exporters seeking a fresh gold import authorisation must first fulfil at least 50 per cent of the export obligation under their previous authorisation.

The move is intended to prevent accumulation of pending export commitments and improve accountability under the scheme.

Mandatory reporting requirements introduced

The DGFT has also introduced tighter reporting requirements for licence holders.

Companies importing gold under the AA scheme will now have to submit fortnightly performance reports certified by an independent Chartered Accountant. The reports will include details of imports and exports undertaken under the authorisation.

Regional authorities will additionally be required to submit consolidated monthly reports to DGFT headquarters, covering all authorisations issued and related import-export transactions. The government is looking to create a more centralised monitoring mechanism for the sector.

Move follows record gold imports

The tighter regulations come amid a sharp rise in India’s gold imports during FY26.

India’s gold imports jumped more than 24 per cent to a record US$ 71.98 billion in 2025-26, although import volumes declined 4.76 per cent to 721.03 tonnes.

Switzerland remained India’s largest gold import source, accounting for nearly 40 per cent of total imports. The UAE contributed more than 16 per cent, while South Africa accounted for around 10 per cent.

Industry raises concerns over duty hike

The gems and jewellery industry has expressed concerns over the sharp increase in gold import duty.

Industry body All India Gems and Jewellery Domestic Council warned that higher duties could encourage grey market activity and increase the risk of gold smuggling.

Market participants believe the latest tightening of compliance norms is part of the government’s broader effort to curb excessive imports, improve oversight and manage the country’s rising import bill.