Government cuts tariff value on imported gold for second straight week

New Delhi: The government today slashed the import tariff value on gold for the second straight week to USD354 per 10 grams in line with weak global prices of the precious metal. The import tariff value is the base price at which the customs duty is determined to prevent under-invoicing.

Usually, the tariff value on gold and silver is revised on a fortnightly basis and the last revision was on July 16. According to the notification issued by the Central Board of Excise and Customs (CBEC), the tariff value on imported gold has been brought down to USD 354 per 10 gm from USD 376 on July 16.

However, the tariff value on imported silver has been kept unchanged at USD 498 per kg. The government further brought down the tariff value of imported gold taking into account sharp fall in global prices in view of strengthening of the US dollar. At Singapore market, gold prices today fell to over five year-low USD 1084.80 per ounce. In the national capital too, gold prices declined by Rs 320 to Rs 25,050 per 10 gm. The country's gold import declined almost 37 per cent to USD 1.96 billion in June, as against USD 3.12 billion in the year-ago period, as per the government data.

Gold is the second-largest import item for India after petroleum. Higher gold import bill adversely affects the country's current account deficit, which occurs when value of import of goods and services is more than exports.