India cuts import tariff value on Gold and Silver

Author: Paul Ploumis01 Oct 2014 Last updated at 07:40:44 GMT

MUMBAI (Scrap Monster): The Indian Government today announced cut in import tariff value for gold and silver. The import tariff value of gold was slashed by over 5% and that of silver by nearly 11%, in tandem with prices of precious metals in the international market.

The Central Board of Excise and Customs (CBEC) issued notification in this regard reducing the gold import tariff value to $396 per 10 grams. The import tariffs are being slashed from the existing $420 per 10 grams. Meanwhile the import tariff value of Silver has been lowered from the existing $645 per kilogram to $575 per kilogram.

The government move to lower the import tariff value is in track with the weakening gold prices in the global and domestic markets.

The international gold prices have seen a sharp slide in recent days. London Gold prices fell by 0.24% to $1,205.80 per ounce. Meanwhile, gold in India witnessed third day of rise, touching Rs. 27,470 per ten grams in the national capital, New Delhi. On the other hand, spot silver prices plunged by Rs 1,050 per kg to Rs 38,650 per kilogram.

Gold prices have dropped 6.3% in September alone, whereas Silver prices have plunged over 12% during the month.

Tariff value is the base price on which the customs duty on imported gold or silver is calculated and it further helps prevent under-invoicing.