The Indian Government today announced cut in import tariff value for gold and silver . The import tariff value of gold was slashed by nearly 1% and that of silver by over 7.5%, in tandem with prices of precious metals in the international market.
 
The Central Board of Excise and Customs (CBEC) issued notification in this regard reducing the gold import tariff value to $392 per 10 grams. The import tariffs are being slashed from the existing $396 per 10 grams. Meanwhile the import tariff value of Silver has been lowered from the existing $561 per kilogram to $519 per kilogram. The government move to lower the import tariff value is in track with the weakening gold prices in the global and domestic markets.
 
Meanwhile, reduced demand from jewelers coupled with prevailing weak global trend dragged gold prices lower by Rs 100 on the first trading day of 2015. The prices fell to Rs 27,100 per 10 grams on Thursday. Silver too witnessed thin demand from jewelers and industrial units, resulting in a drop of Rs 800 to Rs 36,200 per kilogram.
 
Interestingly, international gold prices closed the year 2014 at levels almost close to where it started. Silver turned out to be the worst performing metal of the year, closing the year down at around 17% lower than 2013 closing levels.
 
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.

Source:metal.com