Business / What are the latest guidelines as gold hallmarking becomes mandatory?

Zoom News : Jun 17, 2021, 07:00 AM
New Delhi: The mandatory hallmarking of gold jewellery comes into force from 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”.

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.