The government marginally reduced the import tariff value on gold to $345 per 10 grams, but raised it to $452 per kg in case of silver due to global price trends. During the first fortnight of this month, the tariff value on imported gold was fixed at $347 per 10 grams and $448 per kg for silver.
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 (CBEC). India's gold imports fell in value terms by 36.48% to $3.53 billion in November this year, as against $5.57 billion in the year-ago period.
Gold is the second-largest imported item for the country 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.