5 Jul 2021, 16:18 — 4 min read
The Ministry of Consumer Affairs, Food & Public Distribution has rolled out mandatory hallmarking of gold jewellery to ensure that consumers get assured quality. The scheme is being implemented by the Bureau of Indian Standards (BIS). Hallmarking is a quality certificate issued by the BIS guaranteeing the purity of gold in a certain piece of jewellery. This certificate will be issued to all registered jewellers based on purity tests at certificated centres.
Based on extensive consultations with stakeholders, following decisions were taken:
• Hallmarking will be initially be starting from 256 districts of the country which have Assaying marking centres.
• Jewellers with annual turnover up to Rs 40 lakh will be exempted from mandatory Hall Marking.
• Export and re-import of jewellery as per Trade Policy of Government of India - Jewellery for international exhibitions, jewellery for government approved B2B domestic exhibitions will be exempted from mandatory hallmarking.
• Gold of Additional carats 20, 23 and 24 will also be allowed for hallmarking.
• Watches, fountain pens and special types of jewellery viz. Kundan, Polki and Jadau will be exempted from hallmarking.
• Jewellers can continue to buy back old gold jewellery without hallmark from consumer.
• In order to give adequate time to the manufacturers, wholesalers and retailers of gold jewellery, there would be no penalties till August end.
Old jewellery can be gotten hallmarked as it is, if feasible by the jeweller or after melting and making new jewellery.
At present, only 30% of Indian gold jewellery is hallmarked. The hallmarking of jewellery/artefacts is required to enhance the credibility of gold jewellery and customer satisfaction through third party assurance.
A committee constituting of representatives of all stake holders, revenue officials and legal experts will be formed to look into the issues that may possibly emerge during the implementation of the scheme.
Under Hallmarking scheme of Bureau of Indian Standards, jewellers are registered for selling hallmarked jewellery and recognise testing and Hallmarking centres. BIS (Hallmarking) Regulations, were implemented w.e.f. 14.06.2018. Hallmarking will enable consumers/jewellery buyers to make a right choice and save them from any unnecessary confusion while buying gold. At present, only 30% of Indian gold jewellery is hallmarked.
The hallmarking of jewellery/artefacts is required to enhance the credibility of gold jewellery and customer satisfaction through third party assurance for the marked purity/fineness of gold, consumer protection. This step will also help to develop India as a leading gold market centre in the World.
It is to be noted that there has been 25% increase in Assaying and Hallmarking (A&H) centers in the last five years. The number of A&H centers have increased from 454 to 945 in the last five years. At present 940 A&H centers are operative. Out of this 84 AHCs have been setup under Government subsidy scheme in various Districts.
Presently A&H Centres can hallmark 1500 articles in a day, the estimated hallmarking capacity of A&H Centre’s per year are 14 crore articles (assuming 500 articles per shift and 300 working days).
According to World Gold Council, India has around 4 lakh jewellers, out of this only 35,879 have been BIS certified.
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Posted byRaghvendra Singh
Business Research Analyst, Finance Head,