Enabling provision for mandatory hallmarking of gold kicks in from October 12
, ET Bureau|
Updated: Oct 14, 2017, 05.29 PM IST
MUMBAI: With the government having notified the provisions of the Bureau of Indian Standards Act, 2016 from October 12, gold and hallmarking centre associations have said it would be a matter of time before hallmarking of gold jewellery becomes compulsory. BIS allows licensees ( manufacturers), to certify the quality of products ranging from agriculture to textiles to electronics with its popular ISI mark. It would soon include mandatory hallmarking of jewellery to its list, said trade officials.
Currently, hallmarking of jewellery is voluntary, with just 20000 of 3 lakh jewellers countrywide having a BIS license, said sources. So the consumer might not necessarily know that he is getting ornaments of purity he has paid for. Once hallmarking is made compulsory, all jewellers will have to register with BIS and sell only hallmarked ornaments. The customer is then sure that he gets the purity of gold he has paid for, said Harshad Ajmera, president of the Indian Association of hallmarking Centres (HMC).
The provisos of the new BIS Act kicking in from Oct 12 have penal provisions, like fines and even imprisonment for flouting rules. "In the past if somebody passed on jewellery of 18 carat as 22 carat he would have to pay the difference to customer as compensation. But as and when hallmarking becomes compulsory, not only will the jewellery have to pay customer compensation but he stands to pay a fine and have his goods confiscated by BIS," said James Jose, secretary, Association of Gold Refineries & Mints.
India has 500 HMCs across the country. In fiscal year 2017, the HMCs hallmarked 3.1 crore pieces of jewellery, translating to 465 tonnes, claims Ajmera. On each piece the HMC chArges Rs 35 , of which 10% is paid to government as royalty. Based on these figures HMCs got Rs 108.5 crore For hallmarked jewellery in the previous fiscal year. Of this Rs 10.8 crore, ex tax, was royalty for government.
Ajmera said he expects compulsory hallmarking to be implemented gradually, beginning with metros and extending to tier 2 and 3 cities.
Currently, hallmarking of jewellery is voluntary, with just 20000 of 3 lakh jewellers countrywide having a BIS license, said sources. So the consumer might not necessarily know that he is getting ornaments of purity he has paid for. Once hallmarking is made compulsory, all jewellers will have to register with BIS and sell only hallmarked ornaments. The customer is then sure that he gets the purity of gold he has paid for, said Harshad Ajmera, president of the Indian Association of hallmarking Centres (HMC).
The provisos of the new BIS Act kicking in from Oct 12 have penal provisions, like fines and even imprisonment for flouting rules. "In the past if somebody passed on jewellery of 18 carat as 22 carat he would have to pay the difference to customer as compensation. But as and when hallmarking becomes compulsory, not only will the jewellery have to pay customer compensation but he stands to pay a fine and have his goods confiscated by BIS," said James Jose, secretary, Association of Gold Refineries & Mints.
India has 500 HMCs across the country. In fiscal year 2017, the HMCs hallmarked 3.1 crore pieces of jewellery, translating to 465 tonnes, claims Ajmera. On each piece the HMC chArges Rs 35 , of which 10% is paid to government as royalty. Based on these figures HMCs got Rs 108.5 crore For hallmarked jewellery in the previous fiscal year. Of this Rs 10.8 crore, ex tax, was royalty for government.
Ajmera said he expects compulsory hallmarking to be implemented gradually, beginning with metros and extending to tier 2 and 3 cities.
