The Union Government has mandated that all gold jewellery and artefacts sold after 31st March will have to carry a Hallmark Unique Identification Number (HUID). To tide over teething problems for businesses in complying with the order, the government will give 80 percent concession in marking fee for micro units across different products and an additional 10 percent concession to all units in the North East.
The Department of Consumer Affairs plans to strengthen the testing infrastructure available with the Bureau of Indian Standards (BIS) and its recognised labs to 10 times of its current capacity.
Nidhi Khare, Additional Secretary with the Department of Consumer Affairs, told CNBC TV18 that the move is aimed to ensure quality standards, adding that India will have to ensure that its markets comply with basic standards and satisfy consumers as it aims to become the 3rd largest economy in the world.
The government has identified several important products to bring Quality Control Orders (QCOs), for which stakeholder consultation being undertaken for 663 products. Apart from establishing India as a market of quality, Khare said that the aim is to make the consumer aware of how to look for quality products instead of cheap products being dumped. She stated that the government is looking at establishing quality standards for various sectors like construction, electronics, automobiles and durables.
In June 2021, the Bureau of Indian Standards (BIS) made hallmarking of gold jewellery and artefacts mandatory. This was done so as to enhance the credibility of the jewellery and customer satisfaction through third party assurance for the marked purity of gold, consumer protection.
Starting from April 1, 2022, jewellers will be able to sell only 14, 18 and 22 carats of gold jewellery and other items that have been certified by the Bureau of Indian Standards (BIS) for their purity.
Hallmarking is a process that verifies the gold content in jewellery and artefacts. It involves engraving a Hallmark Unique Identification Number (HUID) on each piece of jewellery at an authorised Assaying & Hallmarking centre. The HUID can be used to trace the source and quality of the gold.
The government has made this move to protect consumers from fraud and ensure uniform standards of gold quality across the country. According to BIS, there are about 940 Assaying & Hallmarking centres in India, out of which 256 are located in districts where hallmarking will be mandatory in the first phase.
Consumers can check whether their jewellery is hallmarked or not by looking for four symbols on it: BIS logo, purity in carat, identification mark or number of the hallmarking centre, and identification mark or number of the jeweller.
The HUID number provides a distinct identity to each piece of jewellery enabling traceability. It is critical to the credibility of Hallmarking and addressing complaints regarding purity of Hallmarked jewellery. In HUID based Hallmarking, registration of jewellers is automatic with no human interference. It is aimed at ensuring the purity of Hallmarked jewellery and checking any malpractice.
Jewellers who violate this rule could face a penalty of five times the price of the jewellery or one year imprisonment or both. However, jewellers can continue to buy back old gold jewellery without hallmark from consumers.
Overall, the mandatory hallmarking of gold jewellery and artefacts with HUID is a win-win for everyone. It brings about transparency, ensures consumers’ rights and obviates the chances of Inspector Raj. Anyone can get existing jewellery Hallmarked and get true valuation of Gold.
The HUID-based hallmarking offers consumers higher resale or exchange value of gold articles as quality standardization will lead to price parity. It also assures them of the purity of gold they buy.
(Edited by : Soham Shetty)
First Published:
Mar 3, 2023 7:38 PM
IST
FAQs
Can I sell my gold without hallmark? The gold articles must have the purity mark, for example, 22-carat, and the Bureau of Indian Standards (BIS) logo. What happens if you want to sell old un-hallmarked jewellery? Gold jewellery without a hallmark cannot be sold, according to government regulations.
Can you sell gold that isn't hallmarked? ›
There are 4 precious metals that must be hallmarked to be legally sold as genuine (ie to confirm that they meet the legal standard). These metals are gold, silver, platinum and palladium. Items do not need to be hallmarked if they are under the legal weight threshold for the above precious metals.
Is the sale of gold jewellery without huid number prohibited in india? ›
The sale of hallmarked gold jewellery or gold artefacts without a 6-digit alphanumeric Hallmark Unique Identification Number (HUID) is prohibited by the Bureau of India Standards (BIS) after March 31, 2023.
How can you tell the purity of gold without a hallmark? ›
04/6Acid test
You need a gold testing acid kit comprising hydrochloric acid and nitric acid, with a black stone similar to the jeweler's stone. Thus, rub your piece of jewellery on the stone and then add nitric acid to the mark. If the mark dissolves, then it confirms the gold is pure.
Can gold be gold without a hallmark? ›
Just because your piece of gold doesn't have a hallmark doesn't mean that it's fake. Older pieces of gold may not have a hallmark because it wasn't required in the past. Most of the time, the hallmark is on the inside of the ring, on the clasp of a necklace or bracelet, or on the post of the earrings.
Can I sell Unhallmarked gold? ›
Get Cash For Gold
Ramsdens will buy your gold, damaged, unhallmarked or unwanted gold jewellery. Sell gold and get cash for earrings, necklaces, lockets, bangles, chains, rings, brooches, bracelets, watches and more.
What if my gold is not stamped? ›
No, real gold does not have to be stamped to be considered real gold. However, in the United States, it is required by law that any piece of jewelry must be stamped with a mark that indicates its purity. Typically, you will find the stamp on the clasp of a bracelet or necklace and the inner band of a ring.
What does it mean if gold is not hallmarked? ›
The thing to remember is that most real gold will have markings or hallmarks somewhere on it. If a piece doesn't have a hallmark it does not necessarily mean it is fake but is worth being more vigilant. There are a few ways to test for real gold at home and can be as simple as dropping the piece into a jug of water.
How can I sell gold without a certificate? ›
What can you do if you do not have the bill for the gold purchase? In case you do not have the bill, you can sell the coin, bars or jewellery with an established jeweller but only in exchange for gold purchase at their stores. These stores melt the metal in front of you to check its weight and purity.
Is Hallmark necessary? ›
As per the new rules, if jewellery or an artefact made of 14, 18, or 22-carat gold is sold without the BIS hallmark, the jeweller could be penalised five times the cost of the object or imprisoned for up to one year.
Let's debunk some misconceptions about precious metals reporting; it's not the gold or silver you're buying or selling that the government wants reported, but rather the cash transactions exceeding $10,000. If you pay in paper money, and it's over this threshold, that's when the IRS requires a Form 8300.
Does gold have to be hallmarked? ›
It is not possible to detect by sight or by touch the platinum, gold, palladium or silver content of an item. It is therefore a legal requirement to hallmark all articles consisting of platinum, gold, palladium or silver (subject to certain exemptions) if they are to be described as such.
What are 3 ways to test if gold is real at home? ›
Methods to Check if Gold is Real
- Look for Hallmarks. ...
- Look for Letter Markings. ...
- Rub the Gold on Your Skin. ...
- Water Test. ...
- Magnet Test. ...
- Vinegar Test. ...
- Test Against a Ceramic Tile. ...
- Checking the Size and Weight of Your Gold.
A float test using water is the easiest and safest way to tell if your gold is real at home. Start the process by taking a glass and filling it with water. Drop the gold accessory you want to test in the filled glass. If your gold piece sinks to the bottom of the glass, it is real.
What is the easiest way to test gold at home? ›
Place a few drops of vinegar onto the object. If the drops change the color of the metal, then it is not pure gold. If the color stays the same, then it is pure gold.
What happens if jewellery is not hallmarked? ›
Trading Standards Officers have the power to seize any items that do not comply with the 1973 Hallmarking Act, which can lead to prosecution and a fine of up to £5,000 per article. Do I have to get everything I make in precious metal hallmarked? No.
Is hallmark necessary? ›
As per the new rules, if jewellery or an artefact made of 14, 18, or 22-carat gold is sold without the BIS hallmark, the jeweller could be penalised five times the cost of the object or imprisoned for up to one year.
What does it mean if jewelry is not hallmarked? ›
If the hallmark is absent, this could mean the jewelry does not contain real gold. However, there are other possible explanations. It is possible the hallmark has worn away over time, which can happen if the item is in constant contact with skin.
Does jewelry have to be stamped? ›
In the U.S., it is required by the National Gold and Silver Marking Act of 1906, that gold jewelry be marked with a karat stamp denoting its purity.
