New Delhi: The Centre has imposed a limit on duty-free gold imports under the advance-authorisation scheme for exporters at a maximum of 100 kg per licence in a move aimed at curbing diversion of imported gold into the domestic market to make a fast buck amid concerns over the soaring import bill, which is draining precious foreign exchange reserves.
Under the revised norms issued by the Directorate General of Foreign Trade, first-time applicants seeking permission to import gold will now undergo mandatory physical inspection of their manufacturing units by DGFT officials before authorisation is granted.
The government has also linked fresh gold import permissions to export performance, making it mandatory for firms to fulfil at least 50 per cent of export obligations under earlier licences before becoming eligible for subsequent authorisations.
As part of the more stringent monitoring, exporters importing gold under the AA scheme will now have to submit fortnightly performance reports, while DGFT regional offices have been directed to send monthly updates to headquarters for centralised oversight of gold imports and exports.
The measure is aimed at strengthening scrutiny of duty-free gold imports meant for export-oriented jewellery manufacturing and preventing possible diversion into the domestic market.
Meanwhile, the government on Wednesday raised customs duties on gold and silver imports to 15 per cent from the previous 6 per cent, while platinum import duty was revised upward to 15.4 per cent from 6.4 per cent, as policymakers moved to contain mounting pressure on India’s foreign exchange reserves amid rising oil prices due to the West Asia conflict.
The revised duty structure comprises a 10 per cent basic customs duty along with a 5 per cent Agriculture Infrastructure and Development Cess (AIDC) on gold and silver imports, taking the effective import tax to 15 per cent. The duty hike is aimed at discouraging inbound shipments of precious metals, which remain among the key contributors to higher foreign exchange outflows, and is expected to support broader macroeconomic stability.
The move follows Prime Minister Narendra Modi’s earlier appeal to citizens this month to avoid non-essential gold purchases for a year and adopt austerity measures to conserve foreign exchange reserves amid global uncertainty linked to the West Asia crisis.
India is among the world’s largest consumers of gold, with demand driven largely by jewellery, investment, and festival-related purchases, making the duty hike a significant policy intervention with wide-ranging implications for consumers and investors alike.
(IANS)
