New DGFT Conditions on Advance Authorisation for Gold Imports (SION M-1 to M-8)

The Directorate General of Foreign Trade (DGFT) has significantly tightened the framework for importing gold under Advance Authorisation (AA) for the Gems and Jewellery sector. By Public Notice No. 11/2026-27 dated 14 May 2026, the DGFT has introduced five new regulatory notes under SIONs M-1 to M-8 in the Handbook of Procedures to the Foreign Trade Policy 2023.

These new conditions directly affect how jewellers, manufacturers, and exporters can access duty-free gold for export production. The changes impose a 100 kilogram ceiling per Advance Authorisation, mandate physical verification of manufacturing units for first-time applicants, and introduce stringent reporting and monitoring requirements for both AA holders and Regional Authorities.

This article explains the key amendments, their practical impact on the assessee in the Gems and Jewellery Product Group, and the compliance measures that must now be followed.

DGFT has issued the changes using its powers under paragraph 1.03 and paragraph 2.04 of the Foreign Trade Policy 2023, as amended periodically. The public notice amends the Standard Input Output Norms (SIONs), specifically SIONs M-1 to M-8, which relate to the Gems and Jewellery Product Group.

Key Objective: To enhance oversight, ensure genuine utilisation of duty-free gold for exports, prevent misuse, and improve policy supervision of gold imports under Advance Authorisation.

The amendments take immediate effect from 14 May 2026.

Scope: Who Is Affected?

The new notes apply to:

  • All assessees operating under the Gems and Jewellery Product Group seeking Advance Authorisation for import of gold
  • Applications filed under SIONs M-1 to M-8
  • Both first-time and existing AA applicants

If you are an assessee importing gold against AA for export manufacture (such as jewellery, articles of gold, or related products), these conditions are now binding on all new authorisations.

Note 1 – 100 Kilogram Cap on Gold under Advance Authorisation

What the New Cap Says

The first inserted note provides:

"Advance Authorisation (AA) for import of gold shall be issued, subject to a maximum permissible quantity limit of 100 kilograms."

Practical Implications

  1. Per-Authorisation Limit

    • Each Advance Authorisation for gold is now capped at 100 kg.
    • This is a hard ceiling per authorisation, regardless of the assessed export projections or past performance.

  2. Impact on Large Exporters

    • Large manufacturers who earlier obtained authorisations for higher quantities must now restructure their import planning.
    • Multiple AAs may need to be obtained over time, but subsequent AAs are controlled by the 50% export obligation fulfilment condition (see Note 3).