The government has made a six-digit hallmarking mandatory for all gold jewellery and artefacts sold in the market from July 1, 2023, in a revised timeline.
The March 4 circular on the six-digit Hallmark Unique Identification (HUID) number aims to provide purity assurance and protect consumers’ interests. The government had earlier set the deadline on April 1, 2023.
However, only those jewellers who declared their stock before July 2021, prior to the HUID’s introduction, will benefit from the extended period.
According to the notification by the Consumer Affairs, Food & Public Distribution Ministry, some 3 lakh gold articles are hallmarked daily.
So, should you worry if your inherited gold jewellery or artefacts do not have the six-digit hallmark? And why is hallmarking important?
What Is Hallmarking?
According to the Bureau of Indian Standards (BIS), hallmarking is the “determination and official recording of precious metal in precious metal articles”. Hallmarking is a certification that confirms the purity of the gold. It consists of three marks: the BIS logo, purity of the article, and six-digit HUID.
Until June 2021, this was voluntary for jewellers. But the government has now made it mandatory, barring those who have declared their stock before July 2021, and they can avail of the revised timeline.
What Does The Hallmarking Rule Mean For Sellers?
The government has prohibited the sale of gold jewellery without the hallmark.
Under Section 49 of BIS Rules 2018, if the precious metal does not conform to the standards, the buyer will get compensation, which is calculated based on the shortfall in the purity and the weight of the article sold. The payment will be twice the amount of purity difference, including the testing charges.
What Does It Mean For Consumers?
The hallmarking will give assurance to customers about the gold’s purity. They can also use the BIS CARE app to check the purity and type of the purchased item, the registration number, and the hallmarking centre that tested the article.
What Should You Do If Your Old Gold Jewelry Is Not Hallmarked?
It will not make any difference to the consumers. The mandatory hallmarking rule is for new jewellery items sold.
It means consumers can hold their old jewellery as it is. But suppose they want to sell an un-hallmarked jewellery item, or with the old four-digit hallmarking or buy a new one in exchange. In that case, the jeweller is responsible for offering a six-digit hallmarked product.
The jeweller cannot sell a gold item without proper hallmarking but has the option to melt it and make a new one with the latest six-digit hallmark.
Hence, as per the new rules, any jewellery item bought from now on will come with a purity certification. In addition, the consumers must ensure that the gold jewellery or artefacts they plan to purchase after April 1, 2023, must bear the six-digit HUID.
