Govt makes gold hallmarking mandatory: What it means

According to Bureau of Indian Standards, the hallmarking of jewellery is required to enhance its credibility and customer satisfaction through the third party assurance for the marked purity/fineness of gold, consumer protection.
BIS (Hallmarking) regulations were implemented with effect from June 14, 2018.
BIS (Hallmarking) regulations were implemented with effect from June 14, 2018.
Updated on Jun 17, 2021 07:46 AM IST
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By | Edited by Amit Chaturvedi, Hindustan Times, New Delhi

The central government on Wednesday announced that it has made hallmarking of gold mandatory. The order from ministry of consumer affairs, food and public distribution came into effect immediately.

Pramod Kumar Tiwari, Director General, Bureau of Indian Standards (BIS) addressed a digital press conference on Wednesday where he said that hallmark shall be done at the first point of sale which may be manufacturer, whole-seller, distributor or retailer.

Alteration in the hallmarked jewellery up to 2 grams of increase or decrease to be allowed with responsibility of purity on the jeweller, the official added.

Many jewellers across the country hailed the government's decision. "We welcome the government’s decision to implement mandatory BIS hallmarking for jewellers across the country. Mandatory hallmarking will standardize the purity of gold jewellery and take the industry a long way towards being more structured as well as further push the ongoing shift of business and customers from the unorganized to the organized jewellery segment," said Ramesh Kalyanaraman, Executive Director, Kalyan Jewellers.

Here's all you need to know about the latest government order and what it means for you:

  • The hallmarking scheme has started with 256 districts of the country, which have assaying and hallmarking centres. As per the ministry, there has been 25 per cent increase every year in assaying and hallmarking centres in the last five years.
  • At present, 943 assaying and hallmarking centres are operational in the country.
  • According to Tiwari, jewellers with annual turnover upto 40 lakh will be exempted from mandatory hallmarking. Watches, fountain pens and special types of jewellery like Kundan, Polki and Jadau will also be exempted.
  • He also said that 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 not be hallmarked.
  • According to government order, any manufacturer, importer, wholesaler, distributor or retailer engaged in selling precious metal articles has to mandatorily get registered with the BIS. The registration process will be one-time and there will be no fees will be charged from jewellers for it.
  • Artisans or manufacturers who are manufacturing the gold jewellery on job work basis for the jewellers and are not directly related to sale to anyone in the chain are exempted for registration, the government said.
  • Tiwari said there has always been a high demand from jewellers to increase the grades of gold purity for hallmarking. "Considering this, gold of additional carats i.e. 20, 23 and 24 will also be allowed for hallmarking," said the BIS chief.
  • The ministry in its release clarified that old un-hallmarked jewellery available in households can be sold to jewellers. It said that that jewellers can continue to buy back old gold jewellery without hallmark from consumer and in order to give adequate time to the manufacturers, wholesalers and retailers of gold jewellery, there would be no penalties till August end.
  • BIS (Hallmarking) regulations were implemented with effect from June 14, 2018. According to BIS, hallmarking will enable jewellery buyers to make the right choice and save them from any unnecessary confusion while buying gold.
  • The hallmarking of jewellery is required to enhance its credibility of gold jewellery and customer satisfaction through the third party assurance for the marked purity/fineness of gold, consumer protection, said BIS. This step will also help to develop India as a leading gold market centre in the world, it added.
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Tuesday, January 18, 2022