Govt cuts tariff value on gold, silver

The import tariff value is the base price at which the customs duty is determined to prevent under-invoicing.

The government on Monday slashed import tariff value on gold and silver to $344 per 10 grams and $461 per kg respectively.

For the last fortnight, the tariff value on imported gold was fixed at $354 per 10 grams and on silver it was $470 per kg.

The import tariff value is the base price at which the customs duty is determined to prevent under-invoicing. It is normally revised on a fortnightly basis.

The change in tariff value of these precious metals has been notified by the Central Board of Excise and Customs, said an official statement issued by the Finance Ministry.

Globally, gold fell 0.1 per cent to $1,056 an ounce, after dropping on Friday to $1,052.83, the lowest level since February 2010 in Singapore. At London, it traded a shade lower at $1,056.40 an ounce in early trade on Monday.

In the domestic market also, gold prices dipped by Rs 90 to trade at over four-month low of Rs 25,525 per 10 grams, extending its slide for the third straight day at the bullion market today, tracking a weakening global trend and muted demand from jewellers.

Silver too remained under selling pressure and shed another Rs 100 at Rs 34,000 per kg.

The country's gold imports reduced to almost half in September this year to $2 billion, as against $3.783 billion in the year-ago period, as per the government data.

Export of gems and jewellery from India dipped by about 18.33 per cent to $18.09 billion during April-October due to declining prices of gold, weak global demand and a sharp rise in return of consignments.

Gold is the second-largest import item for India after petroleum. Higher gold import bill adversely affects the country's current account deficit, which occurs when value of import of goods and services is more than the exports.