MUMBAI (Scrap Register): World's biggest bullion consumer India has cut its import tariff value of gold and silver mainly due to the falling global price trends.
India has reduced its import tariff value of gold from $459 to $401 per ten grams and lowered its silver import tariff value from $737 to $604 a kilo gram.
Tariff value is the base price on which the customs duty is determined to prevent under-invoicing. The notification in this regard has been issued by the Central Board of Excise and Customs (CBEC).
According to the Ministry, the CBEC has effected the changes as per sub seciton 92 of section 14 of the Customs Act, 1962. India governmment continues to impose curbs on gold imports and purchases to check the rising current account deficit (CAD).
According to World Gold Council, India, which represents 28% of global consumer demand for gold, may see an increase of up to 150% year-on-year in the second quarter of this year. This suggests that up to 400 tons of gold may be imported into India during Q2 2013, almost half of the total imports in the whole of 2012.