The government on 17 May 2013 cut the import tariff value of gold and silver to 466 US dollars per ten grams and 761US dollars per kg, respectively, considering weak global price trend. Tariff value is the base price on which the customs duty is determined to prevent under-invoicing.
Till April 2013, the tariff value of gold was 472 US dollars per ten grams, while silver was 762 US dollars per kg. The notification in this regard was issued by the Central Board of Excise and Customs (CBEC). Besides bullion, the government has hiked the tariff value of crude palm oil to 831 US dollars per tonne from 827 US dollars per tonne, while RBD palm oil was reduced to USD 836 per tonne from 857 US dollars per tonne on 27April.
The tariff value of crude soyabean oil and their varieties of palm oil was also raised. Government has cut the import tariff value of gold as international prices of the precious metals showed a declining trend as investors shifted funds to equities with firming up of dollar. In the London market, gold prices fell by 1.6 percent to 1370.82 US dollars per ounce, while silver declined by 1.8 percent to 22.20 US dollars for an ounce. Similarly, gold prices in the national capital fell by 500 rupees to 26800 rupees per ten grams, while silver dropped by 1000 rupees to 43700 rupees per kg.