India slashes tariff value on imported gold and silver

India slashes tariff value on imported gold and silver

India, the world's largest consumer of gold, has slashed import tariff value of gold and silver by $6 per 10 grams and $5 per kilogram (kg), respectively.

Import tariff value of gold has been slashed from $398 to $392 per 10 grams, while import tariff value of silver has been cut from $643 to $638 per kg. The Central Board of Excise & Customs (CBEC) announced the move through a notification.

India imported a whopping 393.68 tonnes of gold during the April to September period of 2013, forcing the government to take some harsh steps to reduce gold imports, including hike in custom duties on the precious metal.

It may be noted here that Import tariff value is the base price at which the government determines customs duty on a product to prevent under-invoicing.

While the import tariff value of gold and silver has been reduced, the tariff value on imported brass scrap and poppy seeds has been increased.

Import tariff value of brass scrap has been increased from $3,930 per tone to $3,940 per tone, while the tariff value on imported poppy seeds has been hike from $3,154 per tone to $3,195 per tone.

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