By Paul Ploumis 16 Sep 2015 Last updated at 08:37:56 GMT
MUMBAI (Scrap Monster): The Indian Government today has announced cut in import tariff value for gold. Also, import tariff value on silver has been reduced. The import tariff value of gold has been reduced by nearly 2.70%, in accordance with prices of precious metals in the international market. Meantime, tariff value on imported silver has been dropped marginally by 0.2% for the second fortnight period of the current month.
The Central Board of Excise and Customs (CBEC) issued notification in this regard lowering the gold import tariff value to $359 per 10 grams. The import tariffs are being reduced from the existing $369 per 10 grams. Meanwhile the import tariff value of Silver has been reduced from $471 per kilogram to $470 per kilogram.
The government move to cut the import tariff value is in primarily on account of declining gold prices in the global and domestic markets. The precious metal has been trading in a narrow range for the past one week.
Meanwhile, gold prices dipped further on Wednesday session, on the back of rising strength in US dollar amidst risks surrounding US Fed rate hike decision. Gold slipped below the $1,102 per Oz on Comex division of the NYSE. According to analysts, the current downtrend in gold willtake it to further lower levels.
The gold in India eased further, falling by Rs 25 per 10 grams to Rs 26,325 per 10 grams on declining demand from retail buyers and jewellers. However, Silver rebounded by Rs 200 per kilogram to touch Rs 34,700 per kg on rise in demand from industrial users 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.