Mandatory hallmarking roils jewellery industry

Mandatory hallmarking roils jewellery industry

Subject: Economy

Context: Recently, the government has announced the phased implementation of mandatory hallmarking of gold jewellery. In the first phase, gold hallmarking will be available in only in 256 districts and jewellers having annual turnover above Rs 40 lakh will come under its purview.

Concept:

Hallmarking of gold

• The Bureau of Indian Standard (BIS) operates gold and silver hallmarking scheme in India.
• It defines hallmarking as the accurate determination and official recording of the proportionate content of precious metal in precious metal articles.
• The government has notified two categories i.e. gold jewellery and gold artefacts and silver jewellery and silver artefacts under the purview of hallmarking.
• The hallmarking in India is available for jewellery of only two metals i.e. gold and silver.

Exemptions under mandatory hallmarking

• A certain category of jewellery and items will be exempted from the mandatory requirement of hallmarking.
• The export and re-import of jewellery as per Trade Policy of Government of India i.e. Jewellery for international exhibitions, jewellery for government-approved B2B domestic exhibitions will be exempted from mandatory Hallmarking.
• The fountain pens and special types of jewellery such as Kundan, Polki and Jadau will be exempted from hallmarking.

Provisions under mandatory hallmarking

• The government has announced that no penalty will be imposed till August 2021 for non-compliance with the hallmarking norm.
• The jewellers with annual turnover up to Rs 40 lakh will be exempted from mandatory hallmarking.

Purity standards for gold and silver under the hallmarking scheme

• As per BIS standards, there are three categories of hallmarking based on purity of gold i.e. 22 carat, 18 carat and 14 carat.
• The ministry has announced that the gold of additional carats 20, 23 and 24 will also be allowed for Hallmarking.
• The ministry further said that jewellers can continue to buy back old gold jewellery without a hallmark from consumers.