Customs and Excise Duty on Gold from Ore to Bars Raised by 2%

·         Basic up to 6% from 4%, CVD 4% from 2%

·         Platinum Rises by 2%

·         Silver Unchanged

The government on Monday, 21 January hiked the import duty on gold and platinum from 4 to 6 per cent with immediate effect in an urgent bid to curb imports of the precious metals and contain the widening current account deficit (CAD).

The government also announced its decision to link the Gold ETFs (Exchange Traded Funds) with Gold Deposit schemes as a measure to increase the supply of physical gold in the market without resorting to imports.

Arvind Mayaram, Eco Affairs Secretary said that the duties will be reviewed after some time if there is a moderation in the quantity of gold that is imported.

Even as it will take some time to assess whether the bitter pill has yielded the desired results, the immediate fallout was an increase in the price of gold by Rs. 315 at Rs. 31,250 per 10 grams.

India’s gold imports are likely to ease to $44 billion in fiscal 2014 from an estimated $48.3 billion in fiscal 2013 in value terms, marking a 0.2 percentage point drop as CAD eases to 4.3% of GDP.

India’s gold imports rose 9 per cent to 223.1 tonnes in the September quarter, after a 56 per cent fall in the June quarter to 131 tonnes. Analysts predict a recovery in the December quarter due to peak festival- and wedding-season buying.

[Customs Notification No. 01 dated 21st January 2013]

In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of 1962), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 12/2012-Customs, dated the 17th March, 2012, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 185(E) dated the 17th March, 2012, namely: -

In the said notification, in the Table,-

(i)   against S. No. 116, for the entry in column (5), the entry “4%” shall be substituted;

(ii)  against S. No. 318, for the entry in column (5), the entry “4%” shall be substituted;

(iii)  in S. No. 321, against item (i), for the entry in column (4), the entry “6%” shall be substituted;

(iv) against S. No. 323, for the entry in column (4), the entry “6%” shall be substituted;

(v)  against S. No. 328, for the entry in column (4), the entry “6%” shall be substituted;

[F. No. B-1/5/2012-TRU]

Amended Entries are giving below:

SNo.

Chapter or Heading or sub –heading or tariff item

Description of goods

Standard rate

Additional duty rate

Condition No.

 

(1)

(2)

(3)

(4)

(5)

(6)

116.

26

Gold ores and concentrates for use in the manufacture of gold

[Additional duty raised to 4% from 2% by 01/21.01.2013]

Nil

4% 2%

5 and 8

318.

71

Gold dore bar, having gold content not exceeding 95%

Nil

4% 2%

5 and 34

 

 

[Additional duty raised to 4% from 2% by 01/21.01.2013]

 

 

 

321.

71 or 98

(i) Gold bars, other than tola bars, bearing manufacturer’s or refiner’s engraved serial number and weight expressed in metric units, and gold coins having gold content not below 99.5%, imported by the eligible passenger [Basic duty raised to 6% from 4% by 01/21.01.2013]

6% 4%

Nil

35

 

 

(ii) Gold in any form other than (i), including tola bars and ornaments, but excluding ornaments studded with stones or pearls

10%

Nil

35

323.

71

Gold bars, other than tola bars, bearing manufacturer’s or refiner’s engraved serial number and weight expressed in metric units, gold coins having gold content not below 99.5% and gold findings, other than imports of such goods through post, courier or baggage

Explanation.- For the purposes of this entry, “gold findings” 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.

[Basic duty raised to 6% from 4% by 01/21.01.2013]

[Item description of SNo. 323 substituted by 51/13.09.2012]

6% 4%

Nil

-

328.

7110 11 or 7110 19 00

Platinum

[Basic duty raised to 6% from 4% by 01/21.01.2013]

6% 4%

-

-

[Central Excise Notification No. 01 dated 21st January 2013]

In exercise of the powers conferred by sub-section (1) of section 5A of the Central Excise Act, 1944 (1 of 1944), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 12/2012-Central Excise, dated the 17th March, 2012 which was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 163(E) dated the 17th March, 2012, namely: -

In the said notification, in the Table,-

(i)  for S. No. 189 and the entries relating thereto, the following shall be substituted-

“189

71

Gold bars, other than tola bars, bearing manufacturer’s engraved serial number and weight expressed in metric units manufactured in a factory starting from the stage of-

 

 

 

(i) (a) Gold ore or concentrate;
     (b) Gold dore bar; or

5%

-

 

 

(ii) Silver dore bar

3%

-

 

 

Explanation.-For the purposes of this entry, ‘gold dore bar’ shall mean dore bars having gold content not exceeding 95% and ‘silver dore bar’ shall mean dore bars having silver content not exceeding 95% accompanied by an assay certificate issued by the mining company, giving details of composition

 

 

(ii) in S. No. 191, against item (i), for the entry in column (4), the entry “5%” shall be substituted.

[F. No. B-1/5/2012-TRU]

Amended Excise Entries are giving below:

SNo.

Chapter or heading or sub-heading or tariff item of the First Schedule

Description of excisable goods

Rate

Condi-tion No.

(1)

(2)

(3)

(4)

(5)

189

71

Gold bars, other than tola bars, bearing manufacturer‘s engraved serial number and weight expressed in metric units manufactured in a factory starting from the stage of-

 

 

 

(i)    (a) Gold ore or concentrate;
(b) Gold dore bar; or

5% 3%

-

 

 

(ii)   Silver dore bar

3%

-

 

 

Explanation.- For the purposes of this entry, ‘gold dore bar’ shall mean dore bars having gold content not exceeding 95% and ‘silver dore bar’ shall mean dore bars having silver content not exceeding 95% accompanied by an assay certificate issued by the mining company, giving details of composition

[Excise duty raised on gold to 5% from 3% by 01-CE/21.01.2013]

 

 

191

71

The following goods manufactured or produced during the process of copper smelting starting from the stage of copper ore or concentrate in the same factory namely:-

 

 

 

 

(i) gold bars, other than tola bars, bearing manufacturer‘s or refiner‘s engraved serial number and weight expressed in metric units and gold coin of purity not below 99.5%;

5% 3%

-

 

 

(ii) Silver in any form, except silver coins of purity below 99.9%

[Excise duty raised on gold to 5% from 3% by 01-CE/21.01.2013]

4%

-