Editor’s Note
The Ministry of Consumer Affairs has proposed draft rules requiring hallmarking for gold jewelry over 2 grams, excluding bullion and coins.
The Ministry of Consumer Affairs has issued draft rules for hallmarking gold jewelry. It mandates hallmarking for jewelry weighing over 2 grams, excluding bullion and coins from the scope.
The Ministry of Consumer Affairs has released a draft of rules for hallmarking gold jewelry. It proposes making hallmarking mandatory for jewelry above 2 grams. Bullion and coins are excluded from this scope.
Currently, there is no strict quality check for gold in jewelry across the country. As a result, unsuspecting customers are often sold 21-carat or lower-carat gold (below international quality standards) at the price of 22-carat gold. In this context, the proposed rules in the draft by the ministry will be significant for consumers.
The draft rules state that the Bureau of Indian Standards (BIS) will be the authority to implement this system. Additionally, certification for establishing hallmarking centers will also be provided by BIS. Only officers at the joint secretary level from the ministry or state will be responsible for implementing the system.
The ministry has sought feedback on the draft rules from various stakeholders. After receiving all suggestions, the rules will be finalized for implementation. Recently, the central ministry sent a proposal for mandatory hallmarking to the World Trade Organization (WTO).
Furthermore, a meeting has been called in mid-February with all stakeholders, including central ministries. Currently, there are 750 hallmarking centers in the country, and the ministry is discussing with its departments to increase this number.
The draft prepared by the central ministry states that items used in the medical, dental, and industrial sectors are exempt from mandatory hallmarking. Additionally, gold threads, unfinished jewelry, exported gold, bullion, and coins are also excluded from this scope.
Furthermore, quality standards have been set for 14, 18, and 22 carat gold jewelry, while other qualities such as 15, 16, 17, or 19 carat will not be recognized for jewelry. The draft rules also include provisions for penalties against non-compliance, which will be imposed on violators under the Bureau of Indian Standards (BIS) Act.
Under the current amended rules, upon registration, goldsmiths will be provided a certificate valid for the next five years, for which a fee of 2,000 rupees must be paid. Additionally, every registered goldsmith must maintain records of all hallmarked jewelry.
In case of incorrect hallmarking, a notice will be issued in the first instance. Under current rules, goldsmiths must pay a fee of 10,000 rupees to open a hallmarking center. These centers charge a fee of 35 rupees per piece of jewelry.
