Govt. Fixes Tariff Value for Gold at $526 per 10 gms and Silver at $953 per kg
[Customs Notification No. 04 (Non Tariff) 17th January 2012]
The
standard price for gold and silver valuation for the tariff value calculation
for the purpose of levy of customs duty is lower than the current market rate
by a factor of 11.6% in the case of gold and 13.7% in the case of silver. Thus
the duty paid in gold and silver will be lower when compared to the duty on
current market value.
Currently
gold is being quoted at $1664 per ounce and silver is at $30.778 per ounce. (1
ounce = 28.3495 gms).
We now have
a variable duty on gold and silver in which both the rate of duty as well as
tariff value are factors. The tariff value measure may be used to justify ease
of duty assessment but is contrary to the WTO agreement which requires the Members
to fix duties on the basis of actual transaction value and not on artificial
tariff value.
The measure
may well complicate the customs clearance since the quantity or purity can
always vary to evade customs duty. It may also be lead to “official” under valuation
and over valuation for transfer of money in the course of trade.
In exercise of the powers conferred by sub-section
(2) of section 14 of the Customs Act, 1962 (52 of 1962), the Central Board of
Excise & Customs, being satisfied that it is necessary and expedient so to
do, hereby makes the following amendment in the notification of the Government
of India in the Ministry of Finance (Department of Revenue), No.
36/2001-Customs (N.T.) dated, the 3rd August, 2001, published in the
Gazette of India, Extraordinary, Part-II, Section-3, Sub-section (ii) vide
number S. O. 748 (E), dated the 3rd August, 2001, namely:-
In the said notification,-
(i) the “TABLE” shall be
renumbered as “TABLE-1” and after “TABLE-1” as so renumbered, the following
TABLE shall be inserted, namely:-
“Table-2 |
|||
S. No. |
Chapter/
heading/ sub-heading/ tariff item |
Description of
goods |
Tariff value (US $) |
(1) |
(2) |
(3) |
(4) |
1. |
71 |
Gold, in any form in respect of which the benefit of Notification No. 3/2012-Customs
dated 16.01.2012 is availed |
526 per 10 grams |
2. |
71 |
Silver, in any form in respect of which
the benefit of Notification No. 3/2012-Customs dated 16.01.2012 is availed |
953 per kilogram” |
(ii) in the “TABLE-1” as so renumbered, S. No. 10
and 11 and the entries relating thereto shall be omitted.
[F. No.
467/2/2012-Cus.V]