Government Raises Duty on Gold to 2% of Value, Silver to 6%
The government raised
import duty on gold and silver exorbitantly to curb import of precious metals
translating thereby huge outflow of dollar outside India.
In a rare decision, the
government raised import duty to an ad valorem 2% from the existing Rs 300 per 10 grams while the same on silver was raised to
6% from the prevailing Rs 1500 a kg.
The import duty on gold
comes to around Rs 540 per 10 grams now considering
the base price of Rs 27,000 per 10 grams. Similarly,
in silver total duty works out to nearly Rs 3,120 a
kg considering the base price of Rs 52,000.
When presenting the
Budget 2009-10, Finance Minister Pranab Mukherjee had
increased import duty on gold bars from Rs 100 per 10
gram to Rs 200 per 10 gram, while duty on other forms
of gold (excluding jewellery) was increased from Rs
250 per 10 gram to Rs 500 per 10 gram.
The customs duty on
silver was increased from Rs 500 per kg to Rs 1,000 per kg. The duty on gold and silver was not been
reviewed since 2004 even though prices have increased manifold, the finance
minister then said.
Further in 2010 annual
budget, the government increased the import duty on gold for the second time to
Rs 300 per 10 grams from Rs
200 earlier, and import duty on gold raised to Rs
1,500 per kg from Rs 1,000 earlier.
The related customs and
excise notifications are giving below:
[Customs
Notification No. 01 dated 16th January 2012]
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. 21/2002-Customs, dated the 1st March, 2002 which was published
in the Gazette of India, Extraordinary, vide G.S.R. 118(E) dated the 1st March,
2002, namely: -
In the said
notification, in the Table,-
(i) for S. No. 187
and the entries relating thereto, the following shall be substituted, namely:-
|
(1) |
(2) |
(3) |
(4) |
(5) |
(6) |
|
“187 |
71 |
Non-industrial diamonds including lab- grown
diamonds (other than rough diamonds) |
2% |
- |
-”; |
(ii) for S. No. 189
and the entries relating thereto, the following shall be substituted, namely:-
|
(1) |
(2) |
(3) |
(4) |
(5) |
(6) |
|
“189 |
7110.11 or 7110 19 00 |
Platinum |
2% |
- |
-”; |
(iii) for S. No. 422
and the entries relating thereto, the following shall be substituted, namely:-
|
(1) |
(2) |
(3) |
(4) |
(5) |
(6) |
|
“422 |
71 |
Diamonds including lab grown diamonds-
semi-processed, half-cut or broken. |
Nil |
- |
-”; |
(iv) against S.No. 518A, for
the entry in column (5), the entry “1%”
shall be substituted.
(v) for S. No. 518B
and the entries relating thereto, the following shall be substituted, namely:-
|
(1) |
(2) |
(3) |
(4) |
(5) |
(6) |
|
“518 B |
71 |
Gold dore bar, having
gold content not exceeding 95%. |
Nil |
1% |
5 and 109 |
|
518 C |
71 |
Silver dore bar having
silver content not exceeding 95% |
Nil |
3% |
5 and 109” |
(vi) for Condition No. 109,
the following shall be substituted,
namely:-
|
Condition No. |
Conditions |
|
“109 |
If,- (a) the goods are directly shipped from the country in
which they were produced and each bar has a weight of 5 kg. or above; (b) the goods are imported in accordance with
the packing list issued by the mining
company by whom they were produced; (c) the importer produces before the Deputy
Commissioner of Customs or the Assistant Commissioner of Customs, as the case
may be, an assay certificate issued by the mining company or the laboratory
attached to it, giving detailed precious metal content in the dore bar; (d) the gold dore
bars are imported by the actual user for the purpose of refining and
manufacture of standard gold bars of purity 99.5% and above; and (e) the silver dore bars are
imported by the actual user for the purpose of refining and manufacture of
silver bars of purity 99.9% and above.” |
2. This notification shall come into force on the
17th day of January, 2012.
[F. No. 354/4/2012-TRU]
[Customs
Notification No. 02 dated 16th January 2012]
In
exercise of the powers conferred by sub-section (1) of section 25 of the
Customs Act, 1962 (52 of 1962), the Central Government, being satisfied that it
is necessary in the public interest so to do, and in supersession of the notification of the Government of India in the
Ministry of Finance (Department of Revenue) No.62/2004-Customs, dated the 12th May, 2004, published in the
Gazette of India, Extraordinary vide, G.S.R. No.311(E), dated the 12th May,
2004, except as respects things done or omitted to be done before such
supersession, the Central Government, being satisfied that it is necessary in
the public interest so to do, hereby exempts goods of the description specified
in column (2) of the Table hereto annexed and falling within Chapter 71 of the
First Schedule to the Customs Tariff Act, 1975 (51 of 1975), when imported into
India, other than through post, courier or baggage, from so much of the duty of
customs leviable thereon which is specified in the
said First Schedule as is in excess of the amount calculated at the rate
specified in the corresponding entry in column (3) of the said Table and from
the whole of the additional duty of customs leviable
thereon under section 3 of the said Customs Tariff Act.
|
Table |
||
|
S.No. |
Description of goods |
Rate |
|
(1) |
(2) |
(3) |
|
1. |
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%. |
2% |
|
2. |
Gold in any form (other than those specified
against S. No.1 in this column) including liquid gold and tola
bars. |
5% |
|
3. |
Silver in any form including silver coins having
silver content not below 99.9%. |
6% |
(2) For
the purposes of this notification,-
(i) “Gold in any form” shall include medallions
and coins having gold content not below 99.5% but shall not include foreign
currency coins and jewellery made of gold ;
(ii) “Silver in any form” shall include medallions
and coins having silver content not below 99.9% but shall not include foreign
currency coins and jewellery made of silver.
(3) This notification shall come into force on the
17thday of January, 2012.
F.No.354/4/2012-TRU
[Customs Notification No. 03 dated 16th
January 2012]
In exercise of the powers conferred by
sub-section (1) of section 25 of the Customs Act, 1962 (52 of 1962), and in supersession of the notification of the
government of India in the Ministry of Finance (Department of Revenue) No. 172/1994-Customs, dated the 30th September,
1994, published in the Gazette of
India, Extraordinary vide, G.S.R. No. 734(E), dated the 30th September,
1994,and notification No.31/2003-Customs,
dated the 1st March, 2003,published in the Gazette of India, Extraordinary
vide, G.S.R. No. 166(E), dated the 1st March, 2003, except as respects things
done or omitted to be done before such supersession, the Central Government on
being satisfied that it is necessary in the public interest so to do, hereby
exempts goods of the description specified in column (2) of the Table below and
falling under Chapter 71 of the First Schedule to the Customs Tariff Act, 1975
(51 of 1975), when imported into India by an eligible passenger, from so much
of the duty of customs leviable thereon which is
specified in the said First Schedule, as is in excess of the amount calculated
at the rate as specified in the corresponding entry in column (3) of the said
Table and from the whole of the additional duty leviable
thereon under section 3 of the said Customs Tariff Act.
|
Table |
||
|
S.No. |
Description of goods |
Rate |
|
(1) |
(2) |
(3) |
|
1. |
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% |
2% |
|
2. |
Gold in any form other than at S.No.1 above,
including tola bars and ornaments, but excluding ornaments
studded with stones or pearls |
5% |
|
3. |
Silver, in any form including ornaments , but
excluding ornaments studded with stones or pearls |
6% |
(2) The
exemption is subject to the following conditions, namely:-
(i) the duty shall be paid in convertible foreign currency;
(ii) the quantity of import shall not exceed ten kilograms of
gold and one hundred kilograms of silver per eligible passenger; and
(iii) the gold or silver is either carried by the eligible
passenger at the time of his arrival in India or is imported by him within
fifteen days of his arrival in India.
Notwithstanding anything contained above, the
exemption under this notification shall also apply to gold or silver taken
delivery of by an eligible passenger from a customs bonded warehouse of the
State Bank of India or the Minerals and Metals Trading Corporation Ltd.,
subject to the conditions (i) and (ii) of para 2
above, and subject to further condition that such eligible passenger files a
declaration in the prescribed form before the proper officer of customs at the
time of his arrival in India declaring his intention to take delivery of the
gold or silver from such a customs bonded warehouse and pays the duty leviable thereon before his clearance from customs.
Explanation.- For the purposes of this notification, “eligible
passenger” means a passenger of Indian origin or a passenger holding a valid
passport, issued under the Passports Act, 1967 (15 of 1967), who is coming to
India after a period of not less than six months of stay abroad; and short
visits, if any, made by the eligible passenger during the aforesaid period of
six months shall be ignored if the total duration of stay on such visits does
not exceed thirty days and such passenger has not availed of the exemption
under this notification or under the notification being superseded at any time
of such short visits.
(3) This notification shall come into force on the
17th day of January, 2012.
F.No. 354/4/2012-TRU
[Customs Notification No. 03 (Non
Tariff) dated 16th January 2012]
In exercise of the powers conferred by
sub-section (2) of section 14 of the Customs Act, 1962 (52 of 1962), the
Central Government, being satisfied that it is necessary and expedient so to
do, hereby fixes the tariff values specified in column (4) of the Table below,
in respect of the imported goods of the description specified in the
corresponding entry in column (3) of the said Table, having regard to the trend
of the value of such or like goods and makes the following further 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, namely: -
In the said notification, in the Table, after S. No. 9 and the entries relating
thereto, the following serial number and entries shall be inserted, namely:-
|
Table |
|||
|
S. No. |
Chapter/ heading/sub-heading/tariff item |
Description of goods |
Tariff value (US
$) |
|
(1) |
(2) |
(3) |
(4) |
|
10. |
71 |
Gold, in any form in respect of which the benefit of Notification
No. 3/2012-Customs dated 16.01.2012 is claimed |
526 per 10 grams |
|
11. |
71 |
Silver, in any form in respect of which the benefit of Notification
No. 3/2012-Customs dated 16.01.2012 is claimed |
953 per kilogram |
(2) This
notification shall come into force with effect from 17th January,
2012.
[F. No. 467/2/2012-Cus.V]
[Central
Excise Notification No. 02 dated 16th January 2012]
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. 5/2006-Central Excise, dated the 1st March, 2006 which was
published in the Gazette of India, Extraordinary, vide G.S.R. 95(E) dated the
1st March, 2006, namely: -
In the said
notification, in the Table,-
(i) for S. No. 21A, and the entries relating thereto,
the following shall be substituted,
namely:-
|
(1) |
(2) |
(3) |
(4) |
(5) |
|
“21A |
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- (a) gold ore or concentrate; (b) gold dore bar; or (c) silver dore bar Explanation.- For the purposes of this exemption, ‘gold dore bars’ shall mean dore bars
having gold content not exceeding 95% and‘silverdore
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. |
1.5% |
-”; |
(ii) for S. No. 21B and the entries relating thereto,
the following shall be substituted,
namely:-
|
(1) |
(2) |
(3) |
(4) |
(5) |
|
“21B |
71 |
Silver manufactured in a factory starting from
the stage of- (a) silver ore or concentrate; (b) silver dore bar;
or (c) golddore
bar. Explanation.- For the purposes of this exemption, ‘gold dore bars’ and ‘silver dore
bar’ shall have the same meaning as in S. No. 21A. |
4% |
-”; |
(iii) for S. No. 21C, and the entries relating thereto,
the following shall be substituted,
namely:-
|
(1) |
(2) |
(3) |
(4) |
(5) |
|
“21C |
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:- |
|
-”; |
|
|
|
(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; |
2% |
|
|
|
|
(ii) silver in any form |
6% |
|
(iv) against S. No. 25, in column (3), for the words
“silver, platinum,” the words “platinum”, shall be substituted.
2. This notification shall come into force with
effect from 17th January, 2012.
[F. No. 354/4/2012-TRU]
[Central Excise Notification No. 03 dated 16th
January 2012]
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. 23/2003-Central Excise,
dated the 31st March, 2003, published in the Gazette of India,
Extraordinary, vide number G.S.R. 266(E), dated the 31st March, 2003, namely :
In the said notification, in the Table, –
(i) against Sr.
No. 8, for the entry in column (4), the entry “In excess of 5% ad valorem” shall be substituted;
(ii) against Sr.
No. 10, for the entry in column (4), the entry “In excess of 6% ad valorem”
shall be substituted;
(2) This notification shall come into force force on the 17th day of January, 2012.
[F No.-354/4/2012 -TRU]