Govt sets stage for compulsory hallmarking of jewellery

Act gives BIS powers from Thursday; jewellers await implementation rules

The government has empowered the Bureau of Indian Standards (BIS) to make hallmarking of jewellery compulsory for 14, 18 and 22 carats.

Until now, jewellery could be sold without hallmarking, too. Usually, 18 carats is the maximum preferred purity for diamond-studded jewellery.

A notification issued by the Ministry of Consumer Affairs has said the changes passed by Parliament in the Bureau of Indian Standards Act, 2016, would be effective from Thursday (October 12).

The Act gives the BIS powers to make hallmarking of jewellery compulsory and to implement all the provisions. But details about the implementation would be known only after BIS issues such rules separately. The Act establishes the agency as the National Standards Body of India with a wider coverage, apart from jewellery. It enables the Centre to appoint any authority, apart from the BIS, to verify the conformity of products and services to a standard and issue a certificate of conformity. Coins and bars will also have to be hallmarked but that can be done only by refineries. Jewellery hallmarking will be the hallmarking centre's domain.

Industry players said this was a way to bring discipline to the jewellery industry. Ishu Datwani, founder, Anmol Jewellers, said, “This will be a RERA {Real Estate (Regulation and Development) Act} event for the jewellery trade.”

RERA is a real estate regulation implemented this year that increases compliance for property developers. It protects consumers’ interests in case of delays and wrongdoings on the part of developers.

Surendra Mehta, national secretary of the Indian Bullion and Jewellers Association, said, “The transitional period for jewellers to move to compulsory selling of hallmarked jewellery has started.” However, the announcement relating to hallmarking just a few days before Diwali has ruffled a few feathers of the small and unorganised jewellers.

Harshad Ajmera, president, Indian Association of Hallmarking Centres, said, “The BIS will have to notify rules for making jewellery hallmarking compulsory and all small and big jewellers need not fear that from tomorrow they can’t sell non-hallmarked jewellery. The government will have to give a timeline for its implementation.” Hallmarking centres will also have to follow all provisions under the new Act and the rules to be notified.

How soon the BIS would come out with rules to ensure smooth operations is the question on everyone’s lips.

Bhargav Vaidya, a veteran bullion analyst, said, “The government had notified the Hallmarking Act on October 12. We hope all necessary rules and guidelines will be issued soon. I believe enough time will be given to deal with the old stock with the jewellers.” Datwani said, “It is a very positive move that will safeguard the interests of consumers. But at the same time, I do feel the government needs to appreciate the fact that we are right in the middle of Diwali and, hence, it should give some reasonable time to the jewellers to complete the hallmarking procedure.”

The government took over a year to notify the changes passed by Parliament in the BIS Act. But, now the BIS would have to come out with rules and prescribe a process of implementation.

Vijay Jain, chief executive officer and director, Orra Jewellery, said, “Since 10 years, we have sold only hallmarked jewellery. So for jewellers like us, implementation is not a challenge. But this will be challenging for many other jewellers.”

Of the 300,000 jewellers across India, only 10 per cent have taken a licence from the BIS to get their jewellery hallmarked. Jain said, “When made compulsory, this will increase customers’ trust on jewellers, including in the unorganised space and among small-town jewellers.” Sources said the implementation would be in phases, though hallmarking centres would not be able to hallmark jewellery other than 14, 18 & 22 carats. In the first phase, metro cities, state capitals and then district headquarters and other areas would be covered. “The October 12 notification empowers the BIS with autonomy to ease the registration process, reduce licence fees and enforce rules and norms. Initially 22 cities, mostly metros and state capitals, are being identified in the first phase for mandatory hallmarking,” a government official said.