The Government today hiked the import tariff value on gold and silver to $411 per 10 grams and $632 per kg as global prices have increased in the wake of escalating violence in Iraq.

In the first fortnight of this month, the tariff value on imported gold stood at $408 per 10 grams and silver at $617 per kg.

The import tariff value — base price at which Customs duty is determined to prevent under-invoicing — is revised on a fortnightly basis, taking into account the volatility in global prices.

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

In the last two weeks, global gold prices have increased due to rising violence in Iraq that has spurred the demand for the precious metal.

In Singapore, gold prices were ruling firm at $1,283.90 per ounce, while silver stood at $19.79 per ounce at 12.20 p.m. today.

Taking global cues, domestic gold and silver prices remained firm at Rs 27,790 per 10 grams and Rs 42,500 per kg, respectively.

The country’s gold imports have declined over 74 per cent to $1.75 billion in April this year due to restrictions imposed by the government on inbound shipments of the precious metal to narrow the current account deficit.

Gold is the second largest import item for India after petroleum. Due to several curbs, the country’s total gold and silver imports dropped 40 per cent to $33.46 billion in 2013-14 against $55.79 billion in the previous year.

These curbs include raising the import duty on the metal to 10 per cent and also making it mandatory for traders to export 20 per cent of the imported gold.