India hikes tariff value on gold and silver imports

By  Paul Ploumis 01 Oct 2015  Last updated at  08:23:02 GMT

MUMBAI (Scrap Monster): The Indian Government has decided to hike the import tariff value for gold. Also, import tariff value on silver has been raised. The import tariff value of gold has been increased by nearly 2.50%, in accordance with prices of precious metals in the international market. Meantime, tariff value on imported silver has been raised marginally by 0.85% for the first fortnight period of the current month.

The Central Board of Excise and Customs (CBEC) issued notification in this regard raising the gold import tariff value to $368 per 10 grams. The import tariffs are being increased from the existing $359 per 10 grams. Meanwhile the import tariff value of Silver has been increased marginally from $470 per kilogram to $474 per kilogram.

The government move to cut the import tariff value is in primarily on account of recent rally in gold prices in the global and domestic markets. The precious metal trade has remained extremely volatile during the past one week.

Meanwhile, gold prices dipped further on London session Thursday, on the back of better-than-expected US employment data leading to hopes of rate hike by the US Fed before year end. The upbeat US economic data dragged gold prices lower by 0.1% to $1,112.94 per Oz in morning trade. Trade experts believe that outcome of more positive data points from the US could lead to further fall in gold prices.

Gold prices in India eased further, falling by Rs 250 per 10 grams to Rs 26,150 per 10 grams on subdued demand from jewellers. The yellow metal declined for the fifth straight day today to touch six-week low. Silver too declined by Rs 150 per kilogram to touch Rs 34,600 per kg on falling 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.