The Directorate General of Foreign Trade (DGFT) has amended a key provision in the Handbook of Procedures (HBP), 2023, concerning the fulfillment of Export Obligation (EO) under the Advance Authorization Scheme. This amendment, made effective immediately on October 23, 2025, aligns the HBP procedure with the provisions of the Foreign Trade Policy (FTP), 2023.
The specific change removes the clause that allowed Advance Authorization holders to import gold as replenishment after the completion of exports, thereby tightening the operational rules related to the import and export cycle for precious metal jewelry.
Amendment Details for Export Obligation
The amendment targets Paragraph 4.84(b) of the HBP-2023, which governs the timeframe for fulfilling export obligations against imported consignments:
- The general requirement for Export Obligation fulfillment remains 120 days from the date of import of each consignment against the Authorization.
- The exception for precious metals also remains, stipulating that the EO period shall be 180 days from the date of import for findings and mountings made of gold, platinum, and silver used for the export of jewelry.
Removal of Gold Replenishment Provision
The crucial change involves the deletion of the sentence stating, “Advance Authorisation holder may also import gold as replenishment after completion of exports.”
This amendment ensures that the procedural guidelines for Advance Authorisation holders who deal with precious metals are fully consistent with the overarching policy framework set out in Para 4.36(a) of the Foreign Trade Policy. No further extension to the Export Obligation period is permitted under the amended rule.