EXPLAINED: Mandatory Gold Hallmarking Starts Today: Know How It Impacts Your Existing Ornaments
The ministry in a release said “hallmarking will be initially be starting from 256 districts of the country which have assaying marking centres”, adding “jewellers with annual turnover up to Rs. 40 lac will be exempted from mandatory Hall Marking”.
New Delhi: The mandatory hallmarking of gold jewellery comes into force from today, Wednesday, said the Union Ministry of Consumer Affairs, Food and Public Distribution.
The ministry also issued certain guidelines in this regard based on extensive consultations with stakeholders.
New Guidelines
The ministry in a release said “hallmarking will be initially be starting from 256 districts of the country which have assaying marking centres”, adding “jewellers with annual turnover up to Rs. 40 lac will be exempted from mandatory Hall Marking”.
Informing about the decisions taken, the ministry said the “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 Hall Marking”.
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The ministry further said gold of additional carats 20, 23 and 24 will also be allowed for Hall Marking.
“Watches, fountain pens and special types of jewellery viz. Kundan, Polki and Jadau will be exempted from Hall Marking. Jewellers can continue to buy back old gold jewellery without hallmark from consumer,” the ministry said.
“In order to give adequate time to the manufacturers, wholesalers and retailers of Gold Jewellery, there would be no penalties till August end,” the ministry added. Old jewellery can be got hallmarked as it is, if feasible by the jeweller or after melting and making new jewellery,” the ministry added.
The government said 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 scheme’s implementation.
Move To Help India Become ‘Leading Global Gold Market Center’
Commenting on the decisions taken, Union Minister Piyush Goyal said “this will help develop India as a leading global gold market center”.
“Continuing our Govt’s endeavour for better protection & satisfaction of customers, mandatory hallmarking in 256 districts will be implemented from 16 June 2021. No penalty will be imposed till August 2021. This will help develop India as a leading global gold market center,” he tweeted.
What happens to the existing and old jewellery you possess?
The announcement has concerned many who are thinking what will happen to their old jewellery that isn't hallmarked. The directive is only for sellers and not individual owners. The objective is to enhance the quality and credibility of gold purchased by consumers.
The government is said to be constituting representatives of all stakeholders, revenue officials and legal experts who will look into issues and cocerns that may emerge once the scheme is implemented.
Why Is Hallmarking Required?
Under hallmarking scheme of the Bureau of Indian Standards (BIS), the jewellers are registered for selling hallmarked jewellery and recognise testing and hallmarking centres.
The BIS (Hallmarking) Regulations were implemented with effect from June 14, 2018.
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Hallmarking will enable the consumers and 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 ministry said.
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 and consumer protection. This step will also help to develop India as a leading gold market center in the world.
Stating that there has been 25% increase in Assaying and Hallmarking (A&H) centres in the last five years, the ministry said the number of A&H centers have increased from 454 to 945 in the last five years.
“At present 940 Assaying and Hallmarking centres are operative. Out of this, 84 AHCs have been set up under government subsidy scheme in various districts,” the ministry added.
The Assaying and Hallmarking centres can presently hallmark 1500 articles in a day with the government informing that the estimated hallmarking capacity of such centres per year are 14 crore articles.
India has around 4 lakh jewellers, as per the World Gold Council while only 35,879 have been Bureau of Indian Standards (BIS) certified.
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