The hallmarking problem is continuing to haunt the jewellery industry. There is no clarity, even after several discussions. The government setup a 60-member expert committee to look into the mandatory hallmarking norms so as to eliminate hurdles in the smooth functioning of the industry. 
BIS held a meeting on August 18 to discuss the problems faced by the industry. The following are some of the highlights that emerged at the meeting: 
 

• •    No plans to withdraw HUID
• •    The jewellery will not have to be transferred on the portal.  That is, hallmarking will remain till the hallmarking centre only.
• •    The deadline for the jeweller to hallmark the old jewellery will be extended beyond August 31.
   

BIS may make some important changes to the mandatory hallmarking system, but the ministry will take its own decision. These are the changes expected:

• •    Jewellers with turnover below 40 lakhs may be allowed to sell hallmarked products without a license
• •    Exemption upto 5 or 10 grams can be given instead of 2 grams, exemption to sell jewellery without HUID. 
• •    Permission to store goods can be obtained without UID
• •    There can be an exemption to lead the goods to the display without UID in domestic exhibitions
• •    In any odd situation, the provision of cancellation and re-enactment of UID may be implemented soon.  There will be no need to melt the jewellery back.
• •    Alternation can be given in any article up to 5 gm, instead of 2 gm, on the same UID.

According to Mahesh Chandra Jain, member of the expert committee, “We have spent hours pondering over several points with the BIS authorities. Long discussions have been held in the past with Minister Piyush Goyal and Minister Rajnath Singh as well. We had requested for abolition of HUID in totality. However, they promised us that they would restrict the responsibility of HUID to the hallmarking centre and not hold retailers responsible. What is really needed is for the government to include all of the new norms in the form of a law or legal annexure one -- which cannot be circumvented by any one jewellery business owner or hallmarking officials at the centres. This will bring clarity in what the government wants jewellery retailers to do.” 

Pursuant  to the office memorandum dated June 30,issued by the Department of Consumer Affairs, Government of India, an advisory committee was constituted to discuss and provide comments in relation to the issues faced in the wake of mandatory hallmarking, and further ensure the successful implementation of the order. The chairman of the All India Gem and Jewellery Domestic Council (GJC), Ashish Pethe, was made a member of the  committee. In furtherance to the discussions held in the meeting, dated July 19, 2021, the committee invited Pethe, acting on behalf of the gem and jewellery industry, to provide a standard operating procedure regarding the issues faced, along with recommendations, to ensure smoother implementation of mandatory hallmarking.

The recommendations have been made in an effort to resolve open procedural issues on a ‘without prejudice’ basis, notwithstanding that several fundamental issues are still open and unresolved.

According to most industry personnel, mandatory hallmarking is a welcome move, as it brings transparency and empowers the consumer. So far, the implementation has been difficult for the industry, especially for small jewellers. “I am glad that the Government is putting in the effort to understand the needs of the industry and modify the rollout plans so that it is a win-win situation for all parties,” opines Aditya Pethe, DIrector, WHP Jewellers.

The intent of BIS is to make hallmarking applicable at the point of sale.Even though there have been several discussions within the industry, and many submissions have been made by various stakeholders of the gem and jewellery industry to the Ministry on how it may be appropriate to make hallmarking applicable at the time of final point of sale, that is, the sale of jewellery from the retailer to the consumer, there is still not much clarity about the final procedure. 

Keeping the above in mind, it is important to finalize and propose a definition of ‘point of sale’, after giving due consideration to the business practices of the gem and jewellery industry. Additionally, it is also pertinent to highlight the acts that are undertaken by the jewellers in the ordinary course of business, which should not be classified as ‘point of sale’. Instead, they should be considered as ‘sale of articles’.