The government today slashed import tariff value on gold and silver to USD 408 per 10 grams and USD 617 per kg respectively, in view of weakness in bullion prices globally.
In the second fortnight of May, tariff value on imported gold stood at USD 424 per 10 grams and silver at USD 650 per kg.
The import tariff value - base price at which customs duty is determined to prevent under-invoicing - is revised on a fortnightly basis taking into account the volatility in global prices.
The reduction in tariff value on imported gold and silver has been notified by the Central Board of Excise and Customs, an official statement said.
In the last few sessions, global gold prices have been ruling on a lower side as positive US economic data backed the case for the Federal Reserve to keep on reducing monetary stimulus which has dimmed the metal's appeal.
In Singapore, both gold and silver were trading down at USD 1,246.9 per ounce and USD 18.70 per ounce respectively, today. Taking global cues, domestic gold rates in the national capital touched 11 month low at Rs 27,400 per 10 grams.
Due to government curbs, the country's total gold and silver imports dropped 40 per cent to USD 33.46 billion in 2013-14, as against USD 55.79 billion in the previous year.
Gold is the second largest import item for India after petroleum. The government had taken several measures to curb gold shipments to address the high current account deficit.
These measures include raising the import duty to 10 per cent on the metal and also made it mandatory for traders to export 20 per cent of the imported gold.