which date of each month is custom duty decided by government for Gold and Silver?

 

Which Date of Each Month is Custom Duty Decided by the Government for Gold and Silver? – A Detailed Analysis

Custom duty plays a significant role in determining the final price of imported gold and silver in India. As India is one of the largest consumers of gold and silver globally, the government's policies regarding import duties on these precious metals directly affect the jewelry market, investors, and even the general public. One common question that arises, particularly among bullion dealers, jewelers, importers, and investors, is:

"On which date of each month is the custom duty for gold and silver decided by the government?"

This article offers an in-depth look at the schedule, authority, and implications of custom duty determinations on gold and silver in India.

Understanding Custom Duty on Gold and Silver

Custom duty is a type of indirect tax levied on goods imported into or exported from a country. In India, the custom duty on gold and silver includes several components:

  1. Basic Customs Duty (BCD)

  2. Agriculture Infrastructure and Development Cess (AIDC)

  3. Social Welfare Surcharge (SWS)

These charges are subject to change depending on government policy, market conditions, and economic goals. However, the actual valuation on which the duty is charged—also known as the "Tariff Value"—is notified regularly by the government.

Who Decides the Tariff Value?

In India, the Central Board of Indirect Taxes and Customs (CBIC) under the Ministry of Finance is the authority responsible for notifying tariff values for imported goods, including gold and silver.

These values are not based on actual transaction prices but are fixed periodically to simplify the customs assessment process and avoid under-invoicing or over-invoicing by importers.

On Which Date of Each Month is the Custom Duty Decided?

The tariff values (used for calculating custom duty) for gold and silver are generally revised and notified by the CBIC twice a month. These revisions typically occur on the 1st and 15th of every month.

However, if the 1st or 15th falls on a non-working day (like a weekend or public holiday), the notification is usually issued on the previous working day.

Summary:

Date Event
1st of every month CBIC notifies revised tariff value
15th of every month CBIC issues second tariff value notification

These dates are not set by law but have evolved as a regular administrative practice followed by the CBIC to maintain transparency and consistency in import duty calculations.

Why Does the Tariff Value Change Twice a Month?

The international prices of gold and silver are volatile and subject to fluctuations due to:

  • Global market trends

  • Geopolitical factors

  • Currency exchange rate variations

  • Inflation and interest rate dynamics

By revising tariff values bi-monthly, the CBIC ensures that the custom duty burden reflects recent market prices without being overly reactive to daily fluctuations.

How to Check the Current Tariff Value?

Anyone can check the latest notification regarding tariff values of gold, silver, and other commodities through the following:

  • CBIC Website: https://cbic.gov.in

  • Notifications Section: Navigate to "Customs" > "Tariff Notifications"

  • Look for “Tariff Value Notification under Section 14 of Customs Act”

Each notification includes:

  • Revised tariff values (per 10 grams for gold and per kg for silver)

  • Effective date

  • Applicable customs duty rates

Practical Impact on Importers and Traders

  1. Import Pricing: Importers calculate landed cost based on the notified tariff value, not the invoice amount.

  2. Inventory Planning: Many jewelers and bullion traders plan major imports just before expected tariff increases to save costs.

  3. Retail Pricing: Fluctuations in custom duty affect retail gold/silver prices and, in turn, consumer demand.

Conclusion

To sum up, the custom duty on gold and silver in India is effectively influenced by the tariff values notified by the CBIC, and these are generally declared twice a month—on the 1st and 15th. This system allows for a relatively stable and transparent duty assessment framework while still being responsive to global price shifts.

If you're an importer, trader, or simply an investor in gold and silver, it's wise to keep a close watch on the CBIC’s tariff value notifications around these dates to make informed decisions.


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