According to Business Standard, which cited a source from the Directorate General of Foreign Trade (DGFT), the Indian government restricted the entry of gold under advance authorization to 100 kg per license on May 14.
This comes a day after attempts to bolster the rupee were intensified by increasing customs fees on gold imports from 6% to 15% in an attempt to deter imports of the yellow metal. The most recent limitations apply to exporters using a unique scheme-advance authorization to import yellow metal duty-free. In FY26, India imported $71.98 billion worth of gold, a 24% increase.
Additionally, under the advance authorization program, the government has strengthened control of gold imports.
Businesses utilizing advance authorization licences, which allow them to import gold without paying full customs duty up front, will now need to export at least 50% of what they promised before they can obtain another import licence, according to the notice referenced by Business Standard.
Before being approved, first-time candidates must also undergo an obligatory physical inspection by regional authorities. Additionally, they will have to submit reports every two weeks detailing their import and export volumes.
In order for the government to keep a close eye on all gold import-export activity, these regional trade offices will also submit monthly comprehensive reports to the DGFT.
In addition to tightening import regulations domestically, officials are closely monitoring gold imports that pass via important trading partners like the United Arab Emirates.
India Increases Its Examination of UAE Gold
Due to worries that importers may increasingly adopt the concessional duty path, India may expedite the examination of certificates of origin that accompany gold imports from the United Arab Emirates (UAE). According to Moneycontrol, this follows the recent increase in import taxes on gold.
According to Moneycontrol, Indian authorities are in contact with UAE agencies and officials to investigate the legitimacy of certificates of origin given for gold exports to India under the framework of the bilateral trade agreement.
One person with knowledge of the situation stated, “The process of verification of the certificate of origin of the gold exported out of the UAE is ongoing,” adding that agencies in both nations are in continuous communication as part of the exercise.
Only goods that satisfy the specified origin requirements are qualified for tariff discounts under the India-UAE Comprehensive Economic Partnership Agreement (CEPA). However, government officials and trade policy experts are worried that precious metals brought into the UAE from other nations would only be partially processed before being sent back to India. Demands for tougher enforcement of origin standards and more stringent checks have resulted from this.
