Govt hikes import tariff value on gold to $347

New Delhi: The government Wednesday raised import tariff value on gold marginally to USD 347 per 10 grams but reduced it on silver to USD 448 per kg, taking into account global price trend.

During the first fortnight of this month, the tariff value on imported gold was fixed at USD 344 per 10 grams and on silver it was USD 461 per kg.

The import tariff value is the base price at which the customs duty is determined to prevent under-invoicing. It is normally revised on a fortnightly basis.

The change in tariff value of these precious metals has been notified by the Central Board of Excise and Customs, said an official statement issued by the Finance Ministry.

At London market, gold prices are firming up on likely increase in interest rates by the US Federal Reserve.

Currently, global gold prices are ruling up by 0.27 percent to USD 1,063.80 per ounce. Similarly, silver rates were also up at USD 13.82 per ounce.

The country's gold imports fell in value terms by 36.48 percent to USD 3.53 billion in November this year, as against USD 5.57 billion in the year-ago period.

Gold is the second-largest import item for India after petroleum. Higher gold import bill adversely affects the country's current account deficit, which occurs when value of import of goods and services is more than the exports.