Gold hallmarking becomes mandatory from June 16. What happens to your old jewellery?

Hallmarking becomes mandatory, read this article to understand new guidelines how it will impact individuals who own gold jewellery and artefacts without a hallmark

Gold hallmarking becomes mandatory from June 16. What happens to your old jewellery

Mandatory hallmarking of all gold jewellery and artefacts was on the cards for some time. It has now become mandatory from 16 June 2021, though with a few exceptions. In a press release issued on 15 June 2021, the Ministry of Consumer Affairs, Food, and Public Distribution exempted jewellers with an annual turnover below Rs 40 lakh from the mandatory hallmarking rule. 

The press release further stated that gold of 20, 22, and 24 karats will have mandatory hallmarking. The rule has been started in 256 districts across India, selected due to the presence of assaying and hallmarking centres (AHCs) in these districts. Time has been given to jewellers to get their existing stock hallmarked by August 2021. A penalty will be applicable thereafter. 

The press release also mentioned that jewellers are being registered under the hallmarking scheme of the Bureau of Indian Standards (BIS). The BIS hallmarking regulations were implemented in June 2018, and the body also recognises the testing and hallmarking centres.

This scheme is expected to make India one of the largest hallmarking centres in the world. A voluntary hallmarking scheme has been in place since 2000 but this has covered only 40% of gold jewellery so far. To accelerate this process, the number of AHCs has been increased from 454 to 945 in the last five years.

Related: Buying gold? 5 things to check before you buy

How can mandatory hallmarking benefit the gold jewellery market?

Mandatory hallmarking will standardise gold quality in the country. A trusted third-party hallmarking assurance on gold jewellery will improve the credibility of the gold jewellery purchased and eliminate customer confusion about the purity of the gold. The gold jewellery market will eventually shift from an unorganised segment to an organised one. 

Is any jewellery exempted from this rule?

Old jewellery bought without hallmarking can be sold by the owner to a jeweller. Alternatively, they can get it melted and hallmarked. Gold watches, gold pens, Kundan, Polki, Jadau are some gold jewellery and artefacts that have been exempted from hallmarking. Export and re-import under the government’s trade policy are also exempt, which includes jewellery for domestic or international exhibitions, and jewellery for government-approved B2B.

What are the charges of getting gold jewellery hallmarked?

If a BIS-registered jeweller wants to get jewellery hallmarked by a BIS-recognised AHC, the charge is Rs 35 per article, and the minimum charge is Rs 200 per consignment, excluding taxes.

Related: Gold trend over 20 years: How to become a smart gold buyer

How can one check if the jewellery is hallmarked?

Hallmarking information of gold jewellery can be confirmed by looking at four components of the hallmark sign. These four components are the BIS mark, karat and fineness, identification mark or number of the AHC, and identification mark or number of the jeweller.

 

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