Government cuts import tariff on Gold and Silver
The government cut the import tariff value on gold to US $391 per 10 gm and the tariff on silver to US $551 per kg. Last fortnight, the tariff on imported gold was fixed at $401 per 10gm and on silver at $575 per kg. Tariff values on gold and silver are notified by the Central Board of Excise and Customs. Tariff values on other items such as crude oil, palm oil, soyabean oil etc have also been cut.
Gold is the second largest import after petroleum for India. The government has imposed several restrictions to curb imports in an attempt to contain the current account deficit. Last year, it raised gold import duty to 10%, and made it mandatory for the importing parties to export back 20% of the imported gold.
The Ministry of Commerce and Industry has been pitching for easing of the gold import restrictions since it will boost gems and jewellery exports, which declined by 10.31% in August 2014.
Import Tariff Value
The import tariff value is the base price at which customs duty is determined to prevent under-invoicing. It is revised every fortnight to account for the volatile global prices.