Mandatory gold hallmarking starts today: How it impacts your old jewellery

Mandatory hallmarking of gold jewellery and artefacts got here into power from Wednesday and the method can be carried out in a phased method. The announcement was made on Tuesday by the buyer affairs ministry.

The mandatory gold hallmarking will be first implemented in 256 districts within the first section of the plan, announced Union minister Piyush Goyal.

Piyush Goyal mentioned, “Continuing our government’s endeavour for better protection and satisfaction of customers, mandatory hallmarking in 256 districts will be implemented from 16 June.”

“No penalty can be imposed until August 2021. This will assist develop India as a number one international gold market centre,” Goyal added.

While the initial plan was to introduce the hallmarking from January 15, 2021, the deadline was extended till June 1 and later to June 15 as jewellers sought more time for compliance in view of the second wave of the Covid-19 pandemic.

WHAT IS GOLD HALLMARKING?

The process of gold hallmarking is a purity certification of the precious metal and has been voluntary in nature. This process was not mandatory before the government’s announcement.

Simply put, the hallmarking will act as an additional purity certification. The government claims that the hallmarking of gold jewellery and artefacts will enhance the credibility of the products. It will also protect the public against lower cartage besides ensuring that consumers do not get cheated while buying gold ornaments.

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The government also said that mandatory hallmarking will help India become a leading gold marker centre in the world.

It may be noted that the Bureau of Indian Standards (BIS) has been conducting a hallmarking scheme in the country since 2000 and around 40 per cent of gold jewellery is currently being certified.

The government further said there has been a 25 per cent increase in Assaying and Hallmarking (A and H) centres — from 454 to 945 — in the last five years.

WHAT HAPPENS TO YOUR OLD JEWELLERY?

Following the announcement, many are wondering what will happen to their old jewellery that has not been hallmarked. As of now, individuals who own gold jewellery without hallmark do not need to worry; the directive is for sellers, aimed at improving the quality of gold purchased by consumers.

The government said that a committee constituting representatives of all stakeholders, revenue officials and legal experts will be formed to look into issues that could emerge after the implementation of the scheme.

It may be noted that gold watches, fountain pens, special types of jewellery including Kundan, Polki and Jadau will be exempted from mandatory hallmarking.

The government’s release also said that jewellers can continue to buy back old gold jewellery without hallmark from consumers.

“In order to give adequate time to the manufacturers, wholesalers and retailers of gold jewellery, there would be no penalties till August end. Old jewellery can be got hallmarked as it is, if feasible by the jeweller or after melting and making new jewellery,” the federal government mentioned.

WHAT IS THE HALLMARKING GUIDELINE?

The authorities mentioned that jewellers with an annual turnover as much as Rs 40 lakh can be exempted from the necessary hallmarking rule.

“Hallmarking will be initially be starting from 256 districts of the country which have Assaying marking centres. Jewellers with annual turnover up to Rs 40 lakh will be exempted from mandatory hallmarking,” the government said.

“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 hallmarking,” the government press release added. Furthermore, gold of further carats 20, 23 and 24 can be eligible for hallmarking.

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