Dgft Tightens Duty Free Gold Imports Caps IT At 100 Kg Per Permit Asianet Newsable

The Directorate General of Foreign Trade (DGFT) has tightened regulations on duty-free gold imports, setting a limit of 100 kg per permit, a move impacting bullion traders and potentially affecting gold supply chains. This decision follows increased scrutiny of gold imports and aims to curb potential misuse of duty-free schemes. The revised regulations are designed to ensure more stringent monitoring and compliance in the gold import sector. The new cap will require importers to reassess their strategies and potentially adjust their procurement volumes. Non-compliance could lead to penalties, including permit cancellation and potential legal action under the Customs Act, impacting their ability to import gold duty-free and affecting their operational costs.

Section 111 of the Customs Act, 1962, outlines the provisions for confiscation of goods imported contrary to any prohibition. Importing gold beyond the permissible limit under a duty-free permit can trigger confiscation and penalties. Rule 12A of Customs Valuation Rules determines the assessable value.

The DGFT's move signals a stricter stance on duty-free imports, potentially leading to increased scrutiny and audits for gold importers. Businesses should proactively enhance their compliance frameworks to avoid penalties and disruptions. This may also lead to increased litigation and disputes regarding valuation and classification of imported gold.

This change impacts the cash flow and compliance burden for businesses involved in gold imports, requiring them to closely monitor import volumes and adhere to the new regulations.