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 scheme, which allows jewellery exporters to import raw or input materials at zero duty. The government has tighetend conditons for the issuance and monitoring of advance authorisation for import of gold. Earlier, there was no limit on gold imports under the scheme. The Advance Authorisation scheme allows the duty-free import of inputs that are incorporated into an export product. In addition to any inputs, packaging material, fuel, oil, and catalyst that are consumed or utilised in the process of production of export product, are also allowed. "AA for import of gold shall be issued, subject to a maximum remissible quantity of 100 kilograms," the DGFT said in a public notice. It added that in case of application for Advance Authorisation by a first-time applicant, a mandatory physical inspection of the applicant
India caps gold imports under Advance Authorisation scheme at 100 kg
