Gold import and export ban lifted as smuggling concerns ease

The government has reopened the door for gold imports and exports, bringing an end to a months long freeze that had disrupted the precious metals market.

A fresh notification issued by the Ministry of Commerce on November 21 confirmed that the earlier suspension has been withdrawn. The decision came after the cabinet gave its approval, allowing the ministry to restore the rules that had governed the gold and jewellery trade for more than a decade.

Officials said the move follows months of quiet on the smuggling front. The ban was introduced in May after concerns that the system was being misused. According to sources, no new complaints have surfaced in recent months, which encouraged policymakers to ease restrictions.

What has changed

The government has reinstated the 2013 framework that regulates the import and export of precious metals, jewellery and gemstones. The order in question, known as SRO 760(I)/2013, is now back in force. Its revival also cancels the May notification that had put the freeze in place.

Exporters will once again be able to claim the 120 day window offered under the Entrustment Scheme. The ministry has formally condoned the suspension period, ensuring traders are not penalised for the months during which the rules were inactive.

Along with restoring the old system, the government has introduced a set of technical updates. The word Gemstones has been dropped from the short title of the 2013 order. The definition of a passbook has also been refreshed to allow both paper and digital versions.

The clauses governing import and export permissions have been rewritten in simpler terms. Precious metals and gemstones can now be brought into the country and exported as finished jewellery under specific notified schemes. Another change adds clarity for traders who need to switch customs stations due to operational issues. This will now require a one time no objection certificate from the relevant customs officer.

Banking and documentation updates

The rules for documentation have also been tightened. Import related papers issued abroad may now be apostilled under the Apostille Convention where applicable. On the export side, a new stipulation requires all transactions under the Entrustment Scheme to be routed through the same bank that handled the corresponding import. Officials say this step is meant to improve monitoring and reduce loopholes.

Traders are expected to welcome the reopening of the sector, which had been in limbo since the summer. Market participants say the decision will bring some stability back to a business that relies heavily on predictable rules and timely processing of export commitments.