Govt hikes tariff value on imported gold; cuts on silver

Taking cues from global price movements, the government today raised the import tariff value of gold to $436 per 10 grams, while reducing it on imported silver to $702 per kg.

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

During the last fortnight, the tariff value of gold was at $432 per 10 grams and silver at $736 per kg.

The notification in this regard has been issued by the Central Board of Excise and Customs (CBEC), an official statement said.

Besides bullion, the government has raised the import tariff value of brass scrap to $3,860 per tonne and crude palm oil to $883 per tonne, from $3,717 per tonne and $827 per tonne respectively, prevailed till last fortnight.

However, the import tariff value of poppy seed has been reduced to $2,556 per tonne from $2,717, while the tariff value for RBD palmolein cut to $862 per tonne from $883 per tonne in the review period.

The tariff for import of arecanut has been kept unchanged at $1,870 per tonne.

Government has hiked the import tariff value of gold keeping firming global prices trend in precious metals. In London market, gold were ruling up at $1,330.10 per ounce, while silver prices were down at $21.68 per ounce.

Similarly, gold in the national capital was ruling down by Rs 505 at Rs 30,380 per 10 grams on sluggish demand due to ongoing 'Sharadhs'. Silver prices were also trading down by Rs 280 per kg at Rs 49,300.

The government has been taking several measures to curb inbound shipments of gold to contain the current account deficit. However, the World Gold Council has estimated the country's overall gold demand to touch a record 1,000 tonne in 2013.