Government on Monday slashed the import tariff value on gold and silver to $404 per ten grams and $635 per kg, respectively, taking into account the volatility in the global prices
Import tariff value is the base price at which customs duty is determined to prevent under-invoicing. The tariff value is revised on a fortnightly basis after analysing the global price trend.
Till Sunday, the tariff value on imported gold was at $407 per ten grams, while on silver it stood at $663 per kg.
The notification in this regard has been issued by the Central Board of Excise and Customs (CBEC), an official release said on Monday.
Besides precious metals, the tariff value on imported brass scrap has been cut to $3,959 per tonne from $3,995 per tonne, while those on crude soya bean oil has been reduced to $917 per tonne from $944.
Similarly, the tariff value on imported RBD palmolein has been reduced to $898 per tonne from $902, while that on imported crude palm oil has been slashed to $857 per tonne from $877.
In London, gold prices today fell by 0.33 per cent to $1,241.80 per ounce, while silver dropped by 0.23 to $19.12 per ounce. Domestic gold and silver prices remained down following weak global price trend.
Gold is the second largest import item for India after petroleum. However, gold imports are expected to decline this year as government has taken several measures to curb shipments to address the high current account deficit.
According to the jewellers body, total gold imports may decline to below 500 tonnes this fiscal due to these restrictions, from 845 tonnes in the last fiscal.