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Govt marginally slashes the import tariff value of gold and silver

02 Jan 2013 Evaluate
Following a volatile price trend in the international market, the government slashed the import tariff value of gold and silver to $ 539 per 10 gm and $979 per kg, respectively.  A notification has been issued by the Central Board of Excise and Customs in this regard.

Apart from precious metals, the government has reduced the import tariff value of RBD palmolein and poppy seeds to $835 per tonne and $4870 per tonne, respectively. The tariff value, which is released fortnightly, is the base price on which the Customs duty is determined to prevent under-invoicing.

In April-October, gold imports declined 35 per cent year-on-year and overall imports are set to drop over 17 per cent to 800 tonnes this year. During December, the tariff value of gold was $550 per 10 gm, while silver was $1,062 per kg. Also RBD palmolein stood at $872 per tonne, while poppy seed stood at $5,346 per tonne.

In the international markets though the precious metals have shown a volatile trend in last some day but in the national capital they remained firm. Moreover, doubling of the excise duty to 4 per cent in the last budget and the curbs that the RBI imposed on the gold loan value and banning banks from funding gold purchase by loan companies have led to sharp drop in imports this year.

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