DGFT Introduces New Gold Import Rules Under SION M1-M8

The Directorate General of Foreign Trade (DGFT) has also introduced considerable amendments to the Standard Input-Output Norms (SIONs) M1 to M8 applicable to the gems and jewellery sector. The notification also inserts the five new notes that regulate the issuance and monitoring of Advance Authorizations (AA) for the gold imports.

Under the revised framework, imports of gold under Advance Authorization, i.e., AA, will now be subject to a maximum limit of 100 kilograms (Kg). Also, first-time applicants must undergo mandatory physical verification of their manufacturing facilities by the concerned Regional Authority to confirm their operational capability and production capacity. 

The DGFT has further mandated that the subsequent authorizations for gold imports will be granted only after at least 50% fulfilment of the export obligations under previous authorizations have been fulfilled. Advance Authorization, i.e., AA holders, are also required to submit fortnightly performance reports certified by an independent Chartered Accountant, detailing gold import and export transactions. Moreover, Regional Authorities must provide monthly consolidated reports to DGFT Headquarters for centralized compliance monitoring. 

These amendments aim to strengthen regulatory oversight, improve tracking of export obligations, and ensure greater transparency in gold import transactions within the gems and jewellery sector.