India hikes effective gold duty to 18.45%, caps Advance Authorisation imports at 100 kg per licence

Government doubled basic customs duty on gold to 10% and raised AIDC to 5%, lifting effective duty to 18.45% from 9.18%. Jewellery exporters face working-capital strain as Advance Authorisation licences are capped at 100 kg, while UAE CEPA's 200-tonne TRQ at 1% concession gains relative edge.

— FiledSat, 16 May, 2026, 01:44 IST·First seen Sat, 16 May, 2026, 01:43 IST·Source Financial Express · BrandWagon

What happened

Government of India · India capped Advance Authorisation gold imports at 100 kg per licence and raised effective customs duty on gold to 18.45% from 9.18%,

Key facts

  • 100 kg per licence cap
  • BCD raised to 10% from 5%
  • AIDC 5% from 1%
  • effective duty 18.45% from 9.18%
  • $72 billion gold imports FY26
  • 9.3% of total imports
  • CEPA TRQ 200 tonnes annually
  • UAE concession 1% below standard

Why this matters

Scout bolt-on acquisitions or JVs with UAE-based refiners and TRQ-holders to lock in duty-advantaged supply, while distressed AA-dependent exporters become potential consolidation targets.

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