The Indian Department of Consumer Affairs is set to issue a notification mandating the hallmarking of Gold jewellery and artefacts, a development that aims to increase transparency and consumer trust in gold purchases. Started in 2000, Gold Hallmarking is a purity certification initially optional but due to recent developments, will become compulsory for all jewellers. Prior to this adjustment, only about 40% of gold jewellery was hallmarked.
Notification Details
Effective from January 15, 2021, the recent notification makes it compulsory for jewellers to hallmark their gold jewellery. They have been given a grace period of one year to register with the Bureau of Indian Standards (BIS), allowing them sufficient time to clear their stocks of unmarked products. The hallmark for each piece of gold jewellery should include four markings: the BIS mark, the purity in carat, the assay centre’s name, and the jewellers’ identification mark.
New Grades of Gold Jewellery
Rather than the previous ten grades of gold jewellery available, the new norm specifies that hallmarked gold jewellery must fall into one of three grades – 14 carat, 18 carat, and 22 carat. This change ensures a standardization across the jewellery industry, enhancing the quality assurance given to customers.
Penalties for Non-compliance
To ensure adherence to the new norms, strict penalties have been levied on violators. Any individual found violating the provision will be liable to a fine of Rs 1 lakh, or five times the price of the article, whichever is higher. Such measures are put in place to ensure full compliance and protect consumers’ interests.
| Fact | Detail |
|---|---|
| World’s largest importer of gold | India |
| Annual imports | 700-800 tonne |
| Gold Hallmarking initiation year | 2000 |
| Penalty for non-compliance | Rs 1 lakh or five times the price of the article |
| Initial percentage of hallmarked gold | 40% |
Implications for Trade and Consumers
The government has informed the World Trade Organisation (WTO) about these new hallmarking norms, which will help exporters understand the changes in advance, especially in an importing country like India. Furthermore, the mandatory hallmarking aims to protect consumers against lower caratage, ensuring they don’t get exploited while buying gold ornaments. This system will also guarantee the purity as marked on the ornaments, infuse transparency into the process, reassure consumers of quality, and weed out corruption in the jewellery manufacturing system.
Last Modified: February 7, 2024