Govt sets ball rolling for compulsory hallmarking of jewellery

Act giving powers made effective from Oct 12; jewellers call it their own 'RERA moment'

The government has empowered the Bureau of Indian Standards (BIS) to make hallmarking of jewellery compulsory. This can only be in 14, 18 and 22 carat. When diamond-studded jewellery is made, usually 18 carat is the maximum purity preferred.

The notification issued by the Ministry of Consumer Affairs has said that the changes passed by the Parliament in the Bureau of Indian Standards Act, 2016 will be effective from October 12, 2017.

The act actually establishes the BIS as the National Standards Body of India with much wider coverage apart from jewellery. The Act enables Centre to appoint any authority/agency, in addition to the BIS, to verify the conformity of products and services to a standard and issue certificate of conformity.

Coins and bars will also have to be hallmarked compulsorily but that can be done only by refineries. Jewellery hallmarking will be hallmarking centres’ domain.

Industry players say the rule will bring discipline in the jewellery industry.

Ishu Datwani, founder, Anmol Jewellers said, “This will be a RERA event for the jewellery trade.” RERA is Real Estate Regulations Act, which was implemented this year and all property developers are now subject to lots of compliance in order to protect consumers’ interests.

Surendra Mehta, national secretary, Indian Bullion and Jewellers Association said, “The transitional period for jewellers to move to the compulsory selling of hallmarked jewellery has started.”

Several jewellers in the market, especially small or unorganised were looking confused about announcing such change just a few days ahead of Diwali. Harshad Ajmera, president, Indian Association of Hallmarking Centers said: “BIS will have to notify rules for making jewellery hallmarking compulsory and all small, big jewellers need not fear that since 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 of new act and rules to be notified.

While BIS will have to issue rules to implement this, how soon it can come is an issue. Bhargav Vaidya, veteran bullion analyst said: “Government has notified the Hallmarking Act on 12th October, 2017. We hope all the necessary rules and guidelines will be issued in a short time. I believe enough time will be given to deal with old Stock which lying with Jewellers.”

Datwani said: “It is a very positive move, which will safeguard the interest of the consumer. But at the same time I do feel that 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 procedure of hallmarking.”

Government took over a year to notify changes passed by the parliament in BIS Act. However now BIS will have to come out with rules and regulations and prescribe process of implementation.

Vijay Jain, CEO and Director, Orra Jewellery said, “Since last ten years we sell only hallmarked jewellery so for jewellers like us implementation is not a challenge but for many other jewellers this will be challenging”.

According to sources, out of around 300,000 jewellers, only 10% have taken licence from BIS to sell hallmarked jewellery. Jain, however said, “When made compulsory this will increase trust of customers in jewellers including in unirganised or small town jewellers also.”

According to sources, implementation of this will be in phases, though hallmarking centres will not be able to hallmark jewellery other than 14, 18 & 22 carat. Initially, 22 cities, mostly metros and state capitals, are being identified in first phase for mandatory hallmarking.