India hikes Import Tariff Value on Gold and Silver

Author: Paul Ploumis
19 Jan 2015 Last updated at 07:35:12 GMT
MUMBAI (Scrap Monster): The Indian Government today announced considerable hike in tariff value for imported gold and silver. The import tariff value of gold was hiked by 2.3% and that of silver was hiked by 4.6%, in tandem with price of the precious metals in the international market.

The Central Board of Excise and Customs (CBEC) issued notification in this regard raising the gold import tariff value to $401 per 10 grams. The import tariffs are being increased from the existing $392 per 10 grams. Meanwhile the import tariff value of Silver has been hiked from $519 per kilogram to $543 per kilogram.

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

The removal of currency cap for EUR/CHF by the Swiss National Bank offered helping hand to gold last week. The gold prices had made an up move of nearly 4.5% during the past week. By announcing cut in near term interest rates, the bank has driven money away from Swiss Franc. Gold turned out to be the clear beneficiary of the safe-haven move.

Meantime, Gold in New York rose almost 1% to $ 1,276.90 per Oz on Saturday. The prices had touched highs of $ 1,282.40 per Oz during the day. Silver marked its biggest gain since December 9th, rising by 3.8% to $ 17.75 per Oz.

In the domestic front, gold prices surged by Rs 95 to Rs 27,980 per 10 grams on increased buying from jewellers and retailers. Silver too surged by Rs 1,245 per kg to Rs 39,145 per kg Saturday on improved demand from industrial units and coin makers.

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.