By Anil Mathews (ScrapMonster Author)
December 02, 2015 07:01:58 AM
MUMBAI (Scrap Monster): The Indian Government today has announced cut in import tariff value for gold. The import tariff value for silver has also been reduced. The import tariff value of gold has been reduced by nearly 2.82%, in accordance with prices of precious metals in the international market. Meantime, tariff value on imported silver has been dropped modestly by 1.91% for the first 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 $344 per 10 grams. The import tariffs are being reduced from the existing $354 per 10 grams. Meanwhile the import tariff value of Silver has been reduced from $470 per kilogram to $461 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 lost nearly 7% of its value during the month of November alone. This is the biggest monthly fall in gold prices since June 2013.
Meanwhile, gold prices, after falling to a six-year low of $1,051.60 last week, managed to inch higher on Wednesday ahead of the US data later during the day. Gold for February delivery on Comex division of the NY Mercantile Exchange traded at $1,066.90 a troy ounce during European morning hours
The gold in India eased further, falling by Rs 150 per 10 grams to Rs 25,550 per 10 grams on declining demand from retail buyers and jewellers and weak overseas trend. Also, Silver prices dropped by Rs 50 per kilogram to touch Rs 34,150 per kg on reduced 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.