India caps gold imports under AA scheme at 100 kg

PTI New Delhi

A day after significantly increasing the import duty on precious metals, the government on Thursday imposed a limit of 100 kg on gold imports under the Advance Authorisation (AA) scheme. This scheme allows jewellery exporters to import raw or input materials at zero duty.

The government has tightened conditions for the issuance and monitoring of AA for the import of gold. Earlier, there was no limit on gold imports under the scheme. The AA scheme allows the duty-free import of inputs that are incorporated into an export product, in addition to packaging material, fuel, oil and catalysts consumed in the production process. "AA for import of gold shall be issued, subject to a maximum remissible quantity of 100 kilograms," the Directorate General of Foreign Trade (DGFT) said in a public notice on Thursday. The directorate added that in case of an application for AA by a first-time applicant, a mandatory physical inspection of the manufacturing facility will be undertaken to verify the existence, capacity and operational status of the unit. "Any subsequent AA for the import of gold, shall be considered for issuance only upon fulfilment of at least 50% of the export obligation," the DGFT said.