Jewellers want wider ambit for compulsory hallmarking

Earlier this month, BIS restricted hallmarking to ornaments with purity of 22 kt,18 kt, 14 kt

Fearing a mass consumer shift from hallmarked to non-hallmarked gold ornaments, jewellers in the organised sector have urged the central government to mandate hallmarking of all popular categories of gold purity levels in precious ornaments.

In a letter to the Bureau of Indian Standards (BIS) and the ministry of consumer affairs, India Bullion and Jewellers Association (Ibja) said, "We strongly feel the recent revision of law will push customers to buy non-hallmarked jewellery which, can neither be the intention of the trade or of BIS."

Earlier this month, BIS had restricted compulsory hallmarking to gold ornaments with purity of 22 carat (kt), 18 kt and 14 kt. Jewellers say ornaments with purity levels of 9 kt, 16 kt, 17 kt, 19 kt, 20 kt, 21 kt and 23 kt are also much in demand.

"Else, the trade would shift to non-hallmarked jewellery," said Mukesh Mehta, national president of Ibja. It is mostly the unorganised sector which deals in non-hallmarked jewellery. Customers often purchase jewellery on a 'made to order' basis and also buy traditional jewellery of different purities. The BIS order, says the Ibja letter, would "help unregulated jewellers to cheat customers" who want 'made to order' items in non-hallmarked gold ornaments.

BIS has also allowed the permissible limit for cadmium and platinum group metals in gold alloys for manufacturing of jewellery/artifacts and gold solders up to 0.02 per cent and 0.05 per cent, respectively. Globally, such impurities are not allowed.

"This limit is too high and not as per the world standard. The level clearly means that export of jewellery/impurity up to Rs 2,100 per kg (of gold) will be allowed in jewellery. This will open a Pandora's Box of jewellers cheating customers. In respect of such jewellery export, such a high level of contamination is not permitted," went the letter.

"The general format of gold purity is 22 kt in jewellery. Some regional customers demand 23 kt, which we produce to serve them. Hence, the widely accepted purities are 22 kt, 18 kt and 14 kt. But, jewellery with other than these purity levels should also be hallmarked," said Rajiv Popley, director at an established establishment here.

The sector has been under recent pressure with the mandatory requirement of a consumer's permanent account number (PAN, the income tax identification) for any purchase over Rs 200,000, levy of excise duty and then the demonetisation of high-value currency notes.