The government has reduced the import tariff value on gold to $425 per 10 grams due to falling international prices. However, the tariff value on silver was raised to $690 per kg. As on June 30, the tariff value on imported gold stood at $428 per 10 grams, while that of silver stood at $688 per kg. Nevertheless, revising import tariff rates, base price at which customs duty is determined to prevent under-invoicing, is a practice undertaken by the government every fortnight, taking into account the volatility in global prices.
Previously, the government on June 30 hiked the import tariff value on gold and silver to $428 per 10 grams and $688 per kg, respectively, as global prices rose on safe-haven buying in the wake of geo-political tensions. Global gold prices had firmed up in June due to the escalating violence in Iraq and Ukraine that has bolstered demand for the precious metal.
Gold is the second largest import item for India after petroleum. Due to several curbs, the country's total gold and silver imports dropped 40% to $ 33.46 billion in 2013-14, against $55.79 billion in the previous year. These curbs include raising the import duty on the metal to 10 per cent and also making it mandatory for traders to export 20 per cent of the imported gold. However, after declining for seven months in a row, gold imports grew by 65.13% to $3.12 billion in June.
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