The Government today slashed the import tariff value on gold and silver to $422 per 10 grams and $632 per kg respectively, taking weak global cues.

Till the second fortnight of April, tariff value on imported gold stood at $431 per 10 grams and silver at $646 per kg.

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

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

In Singapore, gold prices today fell for the fourth consecutive day by 0.3 per cent to $1,288 per pounce and of silver to $19.14 per ounce. In the national capital, gold prices were ruling at Rs 30,585 per 10 grams.

Due to government curbs, the country’s total gold and silver imports dropped 40 per cent to $33.46 billion in 2013-14, as against $55.79 billion in the previous year.

Gold is the second largest import item for India after petroleum. The government had taken several measures to curb gold shipments to address the high current account deficit.

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

The Commerce and Industry Ministry is pitching for easing of the gold import restrictions to boost gems and jewellery exports, which declined by 8.82 per cent in 2013-14 to $39.52 billion.

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