Indian Government Reduces Gold and Silver Import Tariffs

The government today reduced the import tariff value on gold and silver to $420 per 10 grams and $645 per kg, respectively, taking cues from firm global prices.

For the first fortnight of this month, the tariff value on imported gold stands at $426 per 10 grams, while that for silver at $650 per kg.

The import tariff value is the base price at which customs duty is determined to prevent under-invoicing. It is revised on a fortnightly basis considering volatile global prices.

The tariff value on imported gold and silver has been notified by the Central Board of Excise and Customs, an official statement said.

Gold in Singapore, which normally sets price trend on the domestic front, traded tad higher at $1,290.22 an ounce from $1,289.65 yesterday. Silver also advanced 0.3 per cent to $19.57 an ounce.

Similarly in domestic market, the extending gains for the second day, gold prices moved up by another Rs. 70 to Rs. 28,300 per 10 grams in the national capital today on increased buying by jewellers and retailers, driven by festive season demand coupled with firming global trend.

Silver also rose by Rs. 150 to Rs. 43,000 per kg on steady inflow of buying by industrial units and coin makers.

Gold is the second largest import item for India after petroleum. The government has imposed several restrictions to curb imports to contain current account deficit (CAD).

via Hindu Business Line

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza