Gold Import Tariff Kept Unchanged Amid Diwali Festive Period, Charge On Silver Revised

The tariff levied on gold imports remains unchanged amid the ongoing Diwali festive period, according to a notification issued by the Ministry of Finance on Thursday.

The tariff has been retained as $855 per 10 gram, which is the same that was announced in the previous notification issued on Oct. 15.

This tariff will be levied on gold bars, other than tola bars, bearing manufacturer's or refiner's engraved serial number and weight expressed in metric units.

The rate would also be applicable for gold coins having gold content not below 99.5% and "gold findings, other than imports of such goods through post, courier or baggage", the finance ministry said.

“Gold findings”, the ministry said, means a small component such as hook, clasp, clamp, pin, catch, screw back used to hold the whole or a part of a piece of jewellery in place.

Tariff On Silver Imports

The tariff levied on silver imports has been raised to $1,118 per kilogram. This is higher as compared to the tariff of $1,016 per kilogram fixed in the last notification issued on Oct. 15.

The revised tariff, which will come into effect from Oct. 24, will be levied on "silver, in any form, other than medallions and silver coins having silver content not below 99.9%".

"Silver in any form shall not include foreign currency coins, jewellery made of silver or articles made of silver," it added.

The notification on tariffs comes amid a sharp surge in commodity prices, with gold testing the Rs 80,000 per 10 gram-mark in the retail market, and silver hovering around the Rs 1 lakh-mark.

According to the India Bullion and Jewellers Association, 24 karat gold was trading 0.7% lower at Rs 78,161 per 10 gram. Silver was trading 1.5% lower at Rs 97,420 per kg.

In the international market, the demand for gold—a top safe-haven asset—has shot up amid global headwinds, and uncertainties on the policy front as the United States will elect a new president in November. Spot gold was trading 0.83% higher at 09:25 a.m. (GMT).