Govt slashes tariff value of gold with fall in global rates

Written by Press Trust of India | New Delhi | Updated: Jun 30 2013, 08:11am hrs
The government on Saturday slashed the import tariff value of gold at $401 per 10 grams and that of silver to $604 per kg as prices of the precious metals fell in the international market.

Tariff value the base price on which the customs duty is determined to prevent under-invoicing of gold and silver stood at $421 per 10 gram and $606 per kg, respectively earlier.

The notification, issued by the Central Board of Excise and Customs (CBEC), has come a day after gold prices fell by R1,150 to hit 23-month lows of R25,650 per 10 grams in the national capital tracking weak global cues.

India, the largest gold consumer in the world, imported 860 tonne of gold in 2012. In the first three months of 2013 calendar year, import stood at 215 tonne.

Gold import is expected at 350 tonne in the current quarter, but is projected to decline to about 150 tonne as the government has recently increased the import duty on gold to 8% from six per cent.

The government has increased the tariff value of crude palm oil to $854 per tonne from $852 per tonne earlier. The base price of refined palm oil has been kept unchanged.

Tariff values of crude palmolein, RBD palmolein were also raised to $875 a tonne and $878 per tonne, respectively.

However, the base price of crude soyabean oil has been reduced to $1020 per tonne from $1043 per tonne earlier.

Meanwhile, the gold prices today recovered by R780 to R26,430 per 10 grams due to revival of buying by stockists at attractive lower levels amid a rebound in global markets.

Silver also staged a strong comeback by jumping R1,990 to Rs 41,000 per kg on increased offtake by industrial units and coin makers.

Gold bounces from 23-month low, surges R780 on global cues

Gold prices recovered from 23-month low by surging Rs 780 to R26,430 per 10 grams in the bullion market on Saturday on revival of buying by stockists at attractive lower levels amid a rebound in global markets. Silver also staged a strong comeback by jumping R1,990 to R41,000 per kg on increased offtake by industrial units and coin makers. Sentiment turned better as retailers indulged in low level buying, traders said. Firm global trend, where gold rebounded from a 34-month low on increased demand for jewellery, coins and bars also supported the uptrend, they said.