DGFT Amends Para of HBP: Advance Authorisation Holders Barred from Importing Gold as Replenishment

This article explains that the Directorate General of Foreign Trade (DGFT) amended the Handbook of Procedures (HBP) to prohibit Advance Authorisation holders from importing gold as replenishment material. The change aims to prevent misuse of export-incentive schemes for speculative purposes. The article elaborates on how the move impacts exporters and jewellery manufacturers, especially MSMEs relying on gold inputs. It further highlights policy intent — to tighten trade controls, conserve foreign exchange, and align with India’s gold-import management strategy. The amendment reflects DGFT’s continuing effort to prevent arbitrage between export benefits and gold-replenishment imports, reinforcing compliance obligations under the Foreign Trade Policy.