The Ministry of Consumer Affairs, Food and Public Distribution via a press release dated June 15, 2021 has announced the phased implementation of mandatory hallmarking of Gold Jewellery from June 16, 2021.1
Since gold is of such intrinsic value and is considered to be a popular investment choice for majority of people, the Bureau of Indian Standards (BIS) in order to safeguard consumers from adulteration and to oblige jewelers to maintain legal purity standards has taken this noteworthy step.
WHAT IS HALLMARKING OF GOLD?
As per Bureau of Indian Standards, hallmarking is the "accurate determination and official recording of the proportionate content of precious metal in precious metal articles. Gold hallmarking is thus a purity certification of the precious metal and a mark of its fineness.
Also read BIS Hallmarking in India
- The entire process will be implemented in a phased manner and initially in 256 districts of the country which have Assaying marking centers2.
- Hallmarking is allowed on 14-, 18- and 22- carat gold jewellery. Gold in additional carats, 20, 23 and 24 will also be allowed for hallmarking in due course.
- Hallmark shall be done at first point of sale which includes manufacturer, whole-seller, distributor or retailer.
- To ensure that manufacturers, whole-sellers and retailers have adequate time, they have been given time till August, 2021 to get their current gold jewellery stock assessed by the gold hallmarking center without any penalty.
- Jewelers shall continue to purchase old non-hallmarked jewelry, if:
The old jewelry is later hallmarked as feasible, or;
By melting and converting into new jewelry followed by hallmark certification.
Selling of non-hallmarked jewelry shall be preferably made to the same jeweler as previously non-hallmarked jewelry was purchased from.
- Jewelers shall be required to provide BIS registration or license number along with the display of license at their sales outlet. Verification of genuineness of jewelry and hallmarking can be checked at any Assaying marking center at a charge of Rs. 200. Jewelers shall be penalized in case of fraud, fake hallmarking, non-compliance of due sampling or verification of jewelry
- Lenders shall continue to take non-hallmarked gold as collateral against the loan as no mandatory regulation has been laid by the Reserve Bank of India (RBI). However, the gold taken against the loan shall be valued at the average closing price of 22-carat gold for the preceding 30 days
WHO ALL ARE EXEMPTED FROM HALLMARKING?
- Jewelers with an annual turnover of up to Rs. 40 lakh
- Jewellery for international exhibitions
- Government approved B2B domestic exhibitions
- Trader's engaged in export and re-import of jewellery as per the government's trade policy.
- Gold watches, fountain pens and special type of jewelry such as "kundan, poli and jadau."
The mandatory hallmarking of gold scheme will help develop India as a leading global gold market center and will further protect and ensure that the public do not get cheated on and get the purity as marked on the ornaments.
2. Assaying and hallmarking centre" means a testing and marking centre recognised by the Bureau to determine the purity of precious metal articles and to apply hallmark on the precious metal articles in a manner as may be determined by regulations
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.