The Government of India (GOI) has set a limit of 100 kg on gold imports under Advance Authorisation (AA) Scheme. This scheme allows jewellery exporters to import raw or input materials at zero duty on the condition that such materials are incorporated into products meant for export.
In a public notice, the Directorate General of Foreign Trade (DGFT) stated that Advance Authorisation for gold imports will be issued, with a maximum allowable quantity of 100 kilograms. The DGFT requires a physical inspection of manufacturing facilities for all first-time applicants to verify their operational status as well as capacity.
The organization stated that any further requests for Advance Authorisation to import gold will only be considered if at least 50 percent of the export obligation has been fulfilled. The DGFT mentioned that the relevant regional authority of the directorate will submit a monthly report to the DGFT detailing the issuance of Advance Authorisations.
The Advance Authorisation scheme, administered by the DGFT, is a trade facilitation scheme that was originally introduced in 1976. This scheme enables businesses to import raw materials and other inputs duty-free as long as these materials are physically incorporated into export-bound products.
Previously, there were no limits on gold imports under the AA scheme. However, now the rules have been tightened as GOI has capped duty-free gold imports at 100 kg per authorisation.
Source: News On Air
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