India lifts import tariff value on gold and silver

NEW DELHI (Scrap Monster):  The Indian Government today announced considerable hike in tariff value for imported gold and silver. The import tariff value of gold was hiked by 2.7% and that of silver was hiked by 6.05%, in tandem with price of the precious metals in the international market.

The Central Board of Excise and Customs (CBEC) issued notification in this regard raising the gold import tariff value to $385 per 10 grams. The import tariffs are being increased from the existing $375 per 10 grams. Meanwhile the import tariff value of Silver has been hiked from $512 per kilogram to $543 per kilogram.The government move to raise the import tariff value is in track with the rising strength in gold prices in the global and domestic markets.

Meantime, gold prices climbed higher in international market as dollar retreated from its highs. However, assumptions of possible interest rate hike by US Federal Reserve limited the gains in gold. The gold prices, after declining 2.4% during March this year, was marginally up by 0.4% at $1,187.50 on first day of April. The comments made by the US Fed Chair hinting at a rate hike later this year, had snapped the seven-day rally in gold last week. Gold has lost almost 3% after touching its three-weeks high last week.

In the domestic front, gold prices recovered by Rs 200 to Rs 26,775 per 10 grams on increased buying from jewellers and retailers. Silver too found buying support and surged by Rs 150 per kg to Rs 37,350 per kg Wednesday.

Tariff value is the base price on which the customs duty on imported gold or silver is calculated and it further helps prevent under-invoicing.