Volatility in Global Prices:Taking into account the volatility in global prices the import tariff value base price at which customs duty is determined to prevent under invoicing is revised on a fortnightly basis. Central Board of Excise and Customs notified hike in tariff value on imported gold and silver in an official statement on Monday in New Delhi.
It is evident that the during the past two weeks due to violence in Iraq global prices have increased that has spurred demand for the precious noble metal. On Monday gold and silver prices were ruling firm at USD 1283.90 per ounce and 19.79 per ounce at 1220 hours on Monday in Singapore.
Due to the international markets demand and instability the domestic gold and silver prices in the market reminded firm at Rs. 27,790 per 10 grams and Rs. 42,500 per kg. To narrow the current account deficit the restrictions imposed by the government on inbound shipments has declined the country’s gold imports across 74 percent to USD 1.75 billion in April this year. After petroleum gold is the second largest import for India. The countries total gold and silver imports dropped 40 percent to USD 33.46 billion in 2013-14 against the previous year’s import of USD 55.79 billion due to several curbs which include 10 percent rise on import duty and making mandatory to export 20 percent of the imported gold for traders.