BIS proposes compulsory registration for selling hallmarked jewellery

This will kill business of online sales as BIS registration is given only to physical premises

The Bureau of Indian Standards (BIS) has moved a step closer to mandatory selling of hallmarked jewellery. Two weeks earlier, it issued draft rules which propose compulsory registration for jewellers with BIS.

Sources say it has been decided that "once jewellers' registration with BIS is done, the next move will be to mandate that only hallmarked jewellery can be sold".

However, this would kill the business of online jewellery sales, as BIS registration is given only to physical premises. Various trade and industry bodies have made representations on this, including the Indian Association of Hallmarking Centers. There have been assurances that some way will be found to allow online sale of hallmarked jewellery.

At present, 25,000 jewellers have a licence from BIS for selling jewellery. If the Draft BIS Hallmarking Regulations are implemented in the proposed form, "over 300,000 jewellery retailers/stores will have to individually register with BIS and pay an annual fee", said an industry representative.

Earlier BIS had asked hallmarking centres to put their stamp on only jewellery, of certain categories. Bars and coin hallmarking have to be done by gold refineries.

Sanjeev Agarwal, chairman of the gems & jewellery committee of business chamber Ficci, said: "The proposed regulations in the current form will not help achieving the purpose of making more and more jewellers selling hallmarked jewellery. For example, the rules specify the responsibility of the 'Certified Jeweller' to pay compensation to a consumer for any shortage in purity (as specified by Bureau). The rules do not anywhere specify the specific liability of the hallmarking centre for incorrect certification." There had, he said, to be a much stronger and specific penalty on the hallmarking centre for any incorrect markings by them. This should be clearly mentioned in the BIS rules.

He mentioned other objections to the proposed rules. Other observers have points, too, in this regard. The Union ministry of consumer affairs is considering all these and expects to take a decision soon. And, once the new regulations are notified, the accompanying procedures will also be announced soon.