Ironically, the factors that are responsible for correct implementation of the hallmarking are the ones that pose hurdle in the same—they are namely—consumer, jewellers and the government agency. One of the biggest obstacles in the effective implementation is awareness and indifference on the part of the consumer. Another rub comes from the jewellers, who find it difficult to move out of their comfort zone and not only pro-actively implement the rule but also educate their customers (many exceptions). And the third hurdle is coming from the government agency that, for reasons best known to them, is handling the matter in a lenient manner. A candid discussion with some major players in the Indian market and the government body responsible for putting the same to practical use, PreetiSrivastav gets the health report of the hallmarking of gold in India—its success, imitations and hurdles. %% {{The Beginning:}} $$ With two main intentions in mind, Government of India introduced the Hallmarking Scheme. While first on mind was to protect the public and public money against any kind of fraud or adulteration, the other intention was to establish a legal standard to be followed by the manufacturers. There was a byproduct too, that was, assistance in export of jewellery with assurance from the government. With the above mentioned objectives, the Bureau of Indian Standard (BIS) was made the sole agency for Hallmarking of gold jewellery under the provision of the BIS Act, 1986. The decision was taken by the RBI Standing Committee of Gold and Precious Metal by taking into consideration that size and market reach of the industry. The BIS certification scheme provides for a voluntary mechanism for certifying the fineness of gold and silver jewellery. Under the scheme, a person desiring to get his jewellery articles BIS hallmarked, may voluntarily apply for a license and can get the jewellery articles hallmarked through any of the BIS recognised Assaying and Hallmarking centres. %% {{The Journey:}} $$ While the beginning was not much as a hassle, except the time taken, courtesy the speed of the system, the journey cannot be exactly called an eventful one, neither the Act proved to be some kind of revolutionary step. But the journey, so far, can be safely termed as an average one with a considerable achievement. Post its initiation in 1986 and prior to its latest amendment request (2012) there was a proposal to make hallmarking mandatory, with effect from 2008. “For this purpose the BIS (Hallmarking of Precious Metals) Regulations, 2006 (‘the Draft Regulations’) were issued and comments were invited on the same from the stakeholders. The All India Gems and Jewellery Trade Federation (GJF) provided its comments and suggestions as regards to the Draft Regulations and amongst other points asserted that compulsory hallmarking can only be introduced in India in a gradual manner considering the availability of appropriate infrastructure and when it addresses the concerns peculiar to the Indian situation in view of the diversity, size and complexities of the jewellery trade,” says Ashok Minawala, Chairman, GJF. %% Later, the BIS Amendment Bill 2012 was introduced in the Parliament on May 3, 2012 that proposed amendments in the BIS Act. The amendment bill was referred to the Parliamentary Standing Committee. %%

{{The proposed bill suggests following amendments:}} %% {{Proposed Section 14 A:}} As regards certification of jewellery articles, a specific provision is proposed to be introduced to empower the CG to make hallmarking compulsory in relation to such jewellers selling such precious metal article in such geographical areas and having such minimum turnover as may be specified by the regulations. A corresponding amendment is proposed in Section 38 of the BIS Act, giving right to the Executive Committee with approval of the CG to make regulations to specify the ‘jewellers’, ‘precious metal articles’, ‘geographical areas’ and ‘minimum turnover for jewellers’ in respect of which the provisions of the proposed Section 14A would apply.%% In this, some of the counter facts presented by GJF were that the suggestion did not include manufacturers who are important part of the chain. Also, due to no clear mention of criterion like weight of jewellery, there might be confusion when it comes to exemptions of articles from hallmarking. It also does not specify what can be termed as ‘such precious metals’, as many items may not make into the category for reasons like—small size (below 5 gm), antique jewellery, low value jewellery, multiple caratagesjewellery (jewellery studded with diamonds and precious stones), jewellery that are altered thereby damaging the hallmark. Also, before marking the geographical areas, basic infrastructure is to be kept in mind. It was also suggested that a specified minimum turnover should be adopted as a criterion.%% {{Licensing and Compliance Requirement:}} Notified jeweller selling the notified precious metal articles are required to make an application to the Bureau to obtain license to use the Hallmark. The license would authorise him to use the Hallmark by getting the article hallmarked from Assaying and Hallmarking Centre on payment of applicable fees. %% The jewellers body, however points out that when the Act speaks about making hallmarking mandatory for all the jewellers, this is itself beating the actual purpose of issuing a license. The jewellers’ representation suggests that with all specifications in terms of weight, price, turnover, geographical areas, buying a license may be redundant. It will only increase pressure on the agency that will issue license and discourage the jewellers because of additional fee and process. %% {{Penal Consequences: }}Under the proposed regime, a license granted by the BIS may be cancelled if the hallmarked articles do not comply with the related Indian Standard (IS). Also, no tolerances are provided for any marginal deviation from the prescribed standards. It proposes to provide for prosecution in case of contravention of proposed Section 14A which would be punishable by imprisonment for a maximum term of one year or/and a minimum fine of two lakh rupees, which may extend to five lakh rupees(Proposed Section 33). %% However, absence of a direct redressal forum and provision to check the responsibility of the deviated standard also pose hurdles. For example, if an article is sent for re-test for certain reasons it is found to be of inferior quality, the retailer would unnecessary be in trouble for no fault of his. %%

{{Other issues:}} Infrastructure and lack of practicability of the idea pose big hurdles for effective implementation of the Act. The gap between the required number of Assaying Centres to hallmark jewellery and the actual present number centres is huge. Unless a good number of centres are provided the government may not expect the jewellers to risk their life and property and travel to far off centres to get the hallmark on jewellery article. %% {{Hurdles and Limitation of Hallmarking in India}} %% Apart from technical and legal reasons the mindset of consumer and jewellers may also come in the way of effective implementation of the law. Hence without working on bringing awareness in the masses, it is practically not possible to expect complete success. A few of the cause of concerns are as follows:%% {{Price:}} While gold has come up as a good investment option, in India it is still looked as an article of adornment. Given the fact that hallmarked jewellerycome from higher price, many customer may not want to pay that extra price. Many jewellrs also may not want to invest in getting license, which does not help in boosting their sale.%% {{Information dissemination: }}Before any decision-making, a clear communication with the industry is mandatory, especially if it is about implementation of any Act that directly concerns the business. Apart from the industry, a proper information dissemination plan for the public also must be planned so that people realise the importance of hallmarking and understand that the primary objective is to safeguard their interest and money against any fraud of adulteration. %% {{Lack of logical and step wise implementation: }}Loopholes like poor infrastructure, non-clarity about the onus of the fault and absence of direct redressal forum—are factors that discourage people from looking at the idea in a positive light. Apprehensions fill minds of people associated with the trade when government talks about making hallmarking mandatoryin metro cities and later in the country without taking into consideration small yet important aspects of the business that might get severely hampered due to unrealistic rules.%%

{{Opinions}} %% {{BachhrajBamalwa, Chairman, GJF:}}Currently hallmarking of jewellery in India is a voluntary thing, the amendment bills wishes to make hallmarking of precious metal mandatory. However, there are many issues and hurdles in making hallmarking mandatory in India. One of the significant hurdles is the lack of infrastructure and requirement of obtaining a licence to sell a quality product. There are approximately 190 hallmarking centres in India, but before making hallmarking mandatory around 5000 hallmarking centres will be required. In India where the traditional jewellery is handmade and uses other metals for soldering, but now we have solders of same quality as of gold, so this is no longer a problem. In terms of technology, the country is ready to have hallmarking as a rule, but implementation of the same is a problem. Presence of cadmium (a metal commonly found in all jewellery which may create problem in measuring right caratage) in the jewellery do not create a purity problem and hence the government should take a lead in creating awareness among jewellers and artisans before imposing any ban. Today, more than 50 per cent Indian jewellers are open to right and true hallmarking. All we now need is proper planning with consultation and regular awareness programmes to make hallmarking a success in India. %% {{Vinod Hayagriv, Managing Director, CKC Sons: }}The whole idea of hallmarking is at a nascent stage, though it has been quite some time since attempt has been made to implement it effectively. As of now, there are several amendments that have been suggested and it’s all in progress.I believe there are around 250 Assaying-hallmarking centres in India and it is obvious that a lot more are required. The technology required for implementation of hallmarking very much exists in India. Also, we need to trust the testing centres, which are always conclusive. More than the jewellery, the use of cadmium solders is harmful for the artisans using them. Ignorance is the cause behind the continuous usage of cadmium solders. Talking about Indian jewellers, it’s difficult to point out actually how many are ready for the mandatory implementation of hallmarking.However, change cannot be denied and jewellers’ body like GJF is in process of educating people. Apart from efforts at the government and business level, we need self regulation. The BIS and GJF is jointly working towards this subject and we should be able to see progress in the next 12 months.%%

{{Ashok Minawala, Past Chairman, GJF:}}We know that rest everything is in place, however certain things that the industry and the BIS needs to take care are as follows: $$ {[]}Address the country before making hallmarking mandatory in metro cities. {[]}Inform the industry about the roadmap of the implementation clearly. {[]}The industry opposes the idea of license. {[]}Infrastructure should be taken care of before the legislation is introduced. {[]}A committee with members from trade should be formed across the nation prior to implementation. {[]}Exemptions of articles from hallmarking should be clearly defined with understanding of ground realities to avoid confusion. {[]}Penal provision should not lead to cancellation of license and prosecution and once hallmarked the jewellers should not be held responsible later. {[]}It is observed that there have been cases of favouritism in the process of issuance of license of hallmarking centres, which is unjust and against basic fundamentals of Central Government. The BIS must also act against centres that have been allotted license of hallmarking and they are misusing the same. {[]}There should be a one-time registration feeby BIS against the current once-in-three-years rule. {[]}Any change in the Act must be done in consultation with the industry or by taking the industry into confidence. For example, use of cadmium in soldering of jewellery has been banned. But more than 90 per cent jewellery being hallmarked today contains Cadmium. No awareness programmes were conducted for the small artisans before implementing the ban. %% {{Bureau of Indian Standard website states:}} %% Hallmarking of Gold Jewellery/Artefacts had commenced in the year 2000 and the Hallmarking of Silver Jewellery/Artefacts was introduced in the year 2005. No other precious metal has been brought under Hallmarking Scheme.%% The Hallmarking Scheme is gradually progressing and as on date more than 10,000 jewellers have been licensed by BIS for getting their products Hallmarked. There are about 200 Assaying & Hallmarking Centresrecognised by BIS for carrying out the assaying and hallmarking activity.%% There are Indian Standards for gold jewellery/artefacts, silver jewellery/artefacts, their test methods, requirements for Assaying and Hallmarking Centres and relevant matters. The Hallmarking activities are strictly accordingly to the relevant Indian Standards.%% An Amendment to the BIS Act, 1986 has been proposed and pending with Government of India.%% There is no plan, as on date, with BIS for introduction of mandatory Hallmarking in India. As and when the Government of India decides on such issue, follow-up actions will be taken by BIS.$$ The BIS is continuously working for spreading awareness on Hallmarking. Programmes are being organised for creating awareness on Hallmarking amongst both consumers and jewellers. Publicity through electronics and print media are also being done.$$ On a visit to the BIS website www.bis.org.in information can be accessed on the Hallmarking Scheme as well as the current status of licensed jewellers in India.$$

Ironically, the factors that are responsible for correct implementation of the hallmarking are the ones that pose hurdle in the same—they are namely—consumer, jewellers and the government agency. One of the biggest obstacles in the effective implementation is awareness and indifference on the part of the consumer. Another rub comes from the jewellers, who find it difficult to move out of their comfort zone and not only pro-actively implement the rule but also educate their customers (many exceptions). And the third hurdle is coming from the government agency that, for reasons best known to them, is handling the matter in a lenient manner. A candid discussion with some major players in the Indian market and the government body responsible for putting the same to practical use, PreetiSrivastav gets the health report of the hallmarking of gold in India—its success, imitations and hurdles. %% {{The Beginning:}} $$ With two main intentions in mind, Government of India introduced the Hallmarking Scheme. While first on mind was to protect the public and public money against any kind of fraud or adulteration, the other intention was to establish a legal standard to be followed by the manufacturers. There was a byproduct too, that was, assistance in export of jewellery with assurance from the government. With the above mentioned objectives, the Bureau of Indian Standard (BIS) was made the sole agency for Hallmarking of gold jewellery under the provision of the BIS Act, 1986. The decision was taken by the RBI Standing Committee of Gold and Precious Metal by taking into consideration that size and market reach of the industry. The BIS certification scheme provides for a voluntary mechanism for certifying the fineness of gold and silver jewellery. Under the scheme, a person desiring to get his jewellery articles BIS hallmarked, may voluntarily apply for a license and can get the jewellery articles hallmarked through any of the BIS recognised Assaying and Hallmarking centres. %% {{The Journey:}} $$ While the beginning was not much as a hassle, except the time taken, courtesy the speed of the system, the journey cannot be exactly called an eventful one, neither the Act proved to be some kind of revolutionary step. But the journey, so far, can be safely termed as an average one with a considerable achievement. Post its initiation in 1986 and prior to its latest amendment request (2012) there was a proposal to make hallmarking mandatory, with effect from 2008. “For this purpose the BIS (Hallmarking of Precious Metals) Regulations, 2006 (‘the Draft Regulations’) were issued and comments were invited on the same from the stakeholders. The All India Gems and Jewellery Trade Federation (GJF) provided its comments and suggestions as regards to the Draft Regulations and amongst other points asserted that compulsory hallmarking can only be introduced in India in a gradual manner considering the availability of appropriate infrastructure and when it addresses the concerns peculiar to the Indian situation in view of the diversity, size and complexities of the jewellery trade,” says Ashok Minawala, Chairman, GJF. %% Later, the BIS Amendment Bill 2012 was introduced in the Parliament on May 3, 2012 that proposed amendments in the BIS Act. The amendment bill was referred to the Parliamentary Standing Committee. %%

{{The proposed bill suggests following amendments:}} %% {{Proposed Section 14 A:}} As regards certification of jewellery articles, a specific provision is proposed to be introduced to empower the CG to make hallmarking compulsory in relation to such jewellers selling such precious metal article in such geographical areas and having such minimum turnover as may be specified by the regulations. A corresponding amendment is proposed in Section 38 of the BIS Act, giving right to the Executive Committee with approval of the CG to make regulations to specify the ‘jewellers’, ‘precious metal articles’, ‘geographical areas’ and ‘minimum turnover for jewellers’ in respect of which the provisions of the proposed Section 14A would apply.%% In this, some of the counter facts presented by GJF were that the suggestion did not include manufacturers who are important part of the chain. Also, due to no clear mention of criterion like weight of jewellery, there might be confusion when it comes to exemptions of articles from hallmarking. It also does not specify what can be termed as ‘such precious metals’, as many items may not make into the category for reasons like—small size (below 5 gm), antique jewellery, low value jewellery, multiple caratagesjewellery (jewellery studded with diamonds and precious stones), jewellery that are altered thereby damaging the hallmark. Also, before marking the geographical areas, basic infrastructure is to be kept in mind. It was also suggested that a specified minimum turnover should be adopted as a criterion.%% {{Licensing and Compliance Requirement:}} Notified jeweller selling the notified precious metal articles are required to make an application to the Bureau to obtain license to use the Hallmark. The license would authorise him to use the Hallmark by getting the article hallmarked from Assaying and Hallmarking Centre on payment of applicable fees. %% The jewellers body, however points out that when the Act speaks about making hallmarking mandatory for all the jewellers, this is itself beating the actual purpose of issuing a license. The jewellers’ representation suggests that with all specifications in terms of weight, price, turnover, geographical areas, buying a license may be redundant. It will only increase pressure on the agency that will issue license and discourage the jewellers because of additional fee and process. %% {{Penal Consequences: }}Under the proposed regime, a license granted by the BIS may be cancelled if the hallmarked articles do not comply with the related Indian Standard (IS). Also, no tolerances are provided for any marginal deviation from the prescribed standards. It proposes to provide for prosecution in case of contravention of proposed Section 14A which would be punishable by imprisonment for a maximum term of one year or/and a minimum fine of two lakh rupees, which may extend to five lakh rupees(Proposed Section 33). %% However, absence of a direct redressal forum and provision to check the responsibility of the deviated standard also pose hurdles. For example, if an article is sent for re-test for certain reasons it is found to be of inferior quality, the retailer would unnecessary be in trouble for no fault of his. %%

{{Other issues:}} Infrastructure and lack of practicability of the idea pose big hurdles for effective implementation of the Act. The gap between the required number of Assaying Centres to hallmark jewellery and the actual present number centres is huge. Unless a good number of centres are provided the government may not expect the jewellers to risk their life and property and travel to far off centres to get the hallmark on jewellery article. %% {{Hurdles and Limitation of Hallmarking in India}} %% Apart from technical and legal reasons the mindset of consumer and jewellers may also come in the way of effective implementation of the law. Hence without working on bringing awareness in the masses, it is practically not possible to expect complete success. A few of the cause of concerns are as follows:%% {{Price:}} While gold has come up as a good investment option, in India it is still looked as an article of adornment. Given the fact that hallmarked jewellerycome from higher price, many customer may not want to pay that extra price. Many jewellrs also may not want to invest in getting license, which does not help in boosting their sale.%% {{Information dissemination: }}Before any decision-making, a clear communication with the industry is mandatory, especially if it is about implementation of any Act that directly concerns the business. Apart from the industry, a proper information dissemination plan for the public also must be planned so that people realise the importance of hallmarking and understand that the primary objective is to safeguard their interest and money against any fraud of adulteration. %% {{Lack of logical and step wise implementation: }}Loopholes like poor infrastructure, non-clarity about the onus of the fault and absence of direct redressal forum—are factors that discourage people from looking at the idea in a positive light. Apprehensions fill minds of people associated with the trade when government talks about making hallmarking mandatoryin metro cities and later in the country without taking into consideration small yet important aspects of the business that might get severely hampered due to unrealistic rules.%%

{{Opinions}} %% {{BachhrajBamalwa, Chairman, GJF:}}Currently hallmarking of jewellery in India is a voluntary thing, the amendment bills wishes to make hallmarking of precious metal mandatory. However, there are many issues and hurdles in making hallmarking mandatory in India. One of the significant hurdles is the lack of infrastructure and requirement of obtaining a licence to sell a quality product. There are approximately 190 hallmarking centres in India, but before making hallmarking mandatory around 5000 hallmarking centres will be required. In India where the traditional jewellery is handmade and uses other metals for soldering, but now we have solders of same quality as of gold, so this is no longer a problem. In terms of technology, the country is ready to have hallmarking as a rule, but implementation of the same is a problem. Presence of cadmium (a metal commonly found in all jewellery which may create problem in measuring right caratage) in the jewellery do not create a purity problem and hence the government should take a lead in creating awareness among jewellers and artisans before imposing any ban. Today, more than 50 per cent Indian jewellers are open to right and true hallmarking. All we now need is proper planning with consultation and regular awareness programmes to make hallmarking a success in India. %% {{Vinod Hayagriv, Managing Director, CKC Sons: }}The whole idea of hallmarking is at a nascent stage, though it has been quite some time since attempt has been made to implement it effectively. As of now, there are several amendments that have been suggested and it’s all in progress.I believe there are around 250 Assaying-hallmarking centres in India and it is obvious that a lot more are required. The technology required for implementation of hallmarking very much exists in India. Also, we need to trust the testing centres, which are always conclusive. More than the jewellery, the use of cadmium solders is harmful for the artisans using them. Ignorance is the cause behind the continuous usage of cadmium solders. Talking about Indian jewellers, it’s difficult to point out actually how many are ready for the mandatory implementation of hallmarking.However, change cannot be denied and jewellers’ body like GJF is in process of educating people. Apart from efforts at the government and business level, we need self regulation. The BIS and GJF is jointly working towards this subject and we should be able to see progress in the next 12 months.%%

{{Ashok Minawala, Past Chairman, GJF:}}We know that rest everything is in place, however certain things that the industry and the BIS needs to take care are as follows: $$ {[]}Address the country before making hallmarking mandatory in metro cities. {[]}Inform the industry about the roadmap of the implementation clearly. {[]}The industry opposes the idea of license. {[]}Infrastructure should be taken care of before the legislation is introduced. {[]}A committee with members from trade should be formed across the nation prior to implementation. {[]}Exemptions of articles from hallmarking should be clearly defined with understanding of ground realities to avoid confusion. {[]}Penal provision should not lead to cancellation of license and prosecution and once hallmarked the jewellers should not be held responsible later. {[]}It is observed that there have been cases of favouritism in the process of issuance of license of hallmarking centres, which is unjust and against basic fundamentals of Central Government. The BIS must also act against centres that have been allotted license of hallmarking and they are misusing the same. {[]}There should be a one-time registration feeby BIS against the current once-in-three-years rule. {[]}Any change in the Act must be done in consultation with the industry or by taking the industry into confidence. For example, use of cadmium in soldering of jewellery has been banned. But more than 90 per cent jewellery being hallmarked today contains Cadmium. No awareness programmes were conducted for the small artisans before implementing the ban. %% {{Bureau of Indian Standard website states:}} %% Hallmarking of Gold Jewellery/Artefacts had commenced in the year 2000 and the Hallmarking of Silver Jewellery/Artefacts was introduced in the year 2005. No other precious metal has been brought under Hallmarking Scheme.%% The Hallmarking Scheme is gradually progressing and as on date more than 10,000 jewellers have been licensed by BIS for getting their products Hallmarked. There are about 200 Assaying & Hallmarking Centresrecognised by BIS for carrying out the assaying and hallmarking activity.%% There are Indian Standards for gold jewellery/artefacts, silver jewellery/artefacts, their test methods, requirements for Assaying and Hallmarking Centres and relevant matters. The Hallmarking activities are strictly accordingly to the relevant Indian Standards.%% An Amendment to the BIS Act, 1986 has been proposed and pending with Government of India.%% There is no plan, as on date, with BIS for introduction of mandatory Hallmarking in India. As and when the Government of India decides on such issue, follow-up actions will be taken by BIS.$$ The BIS is continuously working for spreading awareness on Hallmarking. Programmes are being organised for creating awareness on Hallmarking amongst both consumers and jewellers. Publicity through electronics and print media are also being done.$$ On a visit to the BIS website www.bis.org.in information can be accessed on the Hallmarking Scheme as well as the current status of licensed jewellers in India.$$

Ironically, the factors that are responsible for correct implementation of the hallmarking are the ones that pose hurdle in the same—they are namely—consumer, jewellers and the government agency. One of the biggest obstacles in the effective implementation is awareness and indifference on the part of the consumer. Another rub comes from the jewellers, who find it difficult to move out of their comfort zone and not only pro-actively implement the rule but also educate their customers (many exceptions). And the third hurdle is coming from the government agency that, for reasons best known to them, is handling the matter in a lenient manner. A candid discussion with some major players in the Indian market and the government body responsible for putting the same to practical use, PreetiSrivastav gets the health report of the hallmarking of gold in India—its success, imitations and hurdles. %% {{The Beginning:}} $$ With two main intentions in mind, Government of India introduced the Hallmarking Scheme. While first on mind was to protect the public and public money against any kind of fraud or adulteration, the other intention was to establish a legal standard to be followed by the manufacturers. There was a byproduct too, that was, assistance in export of jewellery with assurance from the government. With the above mentioned objectives, the Bureau of Indian Standard (BIS) was made the sole agency for Hallmarking of gold jewellery under the provision of the BIS Act, 1986. The decision was taken by the RBI Standing Committee of Gold and Precious Metal by taking into consideration that size and market reach of the industry. The BIS certification scheme provides for a voluntary mechanism for certifying the fineness of gold and silver jewellery. Under the scheme, a person desiring to get his jewellery articles BIS hallmarked, may voluntarily apply for a license and can get the jewellery articles hallmarked through any of the BIS recognised Assaying and Hallmarking centres. %% {{The Journey:}} $$ While the beginning was not much as a hassle, except the time taken, courtesy the speed of the system, the journey cannot be exactly called an eventful one, neither the Act proved to be some kind of revolutionary step. But the journey, so far, can be safely termed as an average one with a considerable achievement. Post its initiation in 1986 and prior to its latest amendment request (2012) there was a proposal to make hallmarking mandatory, with effect from 2008. “For this purpose the BIS (Hallmarking of Precious Metals) Regulations, 2006 (‘the Draft Regulations’) were issued and comments were invited on the same from the stakeholders. The All India Gems and Jewellery Trade Federation (GJF) provided its comments and suggestions as regards to the Draft Regulations and amongst other points asserted that compulsory hallmarking can only be introduced in India in a gradual manner considering the availability of appropriate infrastructure and when it addresses the concerns peculiar to the Indian situation in view of the diversity, size and complexities of the jewellery trade,” says Ashok Minawala, Chairman, GJF. %% Later, the BIS Amendment Bill 2012 was introduced in the Parliament on May 3, 2012 that proposed amendments in the BIS Act. The amendment bill was referred to the Parliamentary Standing Committee. %%

{{The proposed bill suggests following amendments:}} %% {{Proposed Section 14 A:}} As regards certification of jewellery articles, a specific provision is proposed to be introduced to empower the CG to make hallmarking compulsory in relation to such jewellers selling such precious metal article in such geographical areas and having such minimum turnover as may be specified by the regulations. A corresponding amendment is proposed in Section 38 of the BIS Act, giving right to the Executive Committee with approval of the CG to make regulations to specify the ‘jewellers’, ‘precious metal articles’, ‘geographical areas’ and ‘minimum turnover for jewellers’ in respect of which the provisions of the proposed Section 14A would apply.%% In this, some of the counter facts presented by GJF were that the suggestion did not include manufacturers who are important part of the chain. Also, due to no clear mention of criterion like weight of jewellery, there might be confusion when it comes to exemptions of articles from hallmarking. It also does not specify what can be termed as ‘such precious metals’, as many items may not make into the category for reasons like—small size (below 5 gm), antique jewellery, low value jewellery, multiple caratagesjewellery (jewellery studded with diamonds and precious stones), jewellery that are altered thereby damaging the hallmark. Also, before marking the geographical areas, basic infrastructure is to be kept in mind. It was also suggested that a specified minimum turnover should be adopted as a criterion.%% {{Licensing and Compliance Requirement:}} Notified jeweller selling the notified precious metal articles are required to make an application to the Bureau to obtain license to use the Hallmark. The license would authorise him to use the Hallmark by getting the article hallmarked from Assaying and Hallmarking Centre on payment of applicable fees. %% The jewellers body, however points out that when the Act speaks about making hallmarking mandatory for all the jewellers, this is itself beating the actual purpose of issuing a license. The jewellers’ representation suggests that with all specifications in terms of weight, price, turnover, geographical areas, buying a license may be redundant. It will only increase pressure on the agency that will issue license and discourage the jewellers because of additional fee and process. %% {{Penal Consequences: }}Under the proposed regime, a license granted by the BIS may be cancelled if the hallmarked articles do not comply with the related Indian Standard (IS). Also, no tolerances are provided for any marginal deviation from the prescribed standards. It proposes to provide for prosecution in case of contravention of proposed Section 14A which would be punishable by imprisonment for a maximum term of one year or/and a minimum fine of two lakh rupees, which may extend to five lakh rupees(Proposed Section 33). %% However, absence of a direct redressal forum and provision to check the responsibility of the deviated standard also pose hurdles. For example, if an article is sent for re-test for certain reasons it is found to be of inferior quality, the retailer would unnecessary be in trouble for no fault of his. %%

{{Other issues:}} Infrastructure and lack of practicability of the idea pose big hurdles for effective implementation of the Act. The gap between the required number of Assaying Centres to hallmark jewellery and the actual present number centres is huge. Unless a good number of centres are provided the government may not expect the jewellers to risk their life and property and travel to far off centres to get the hallmark on jewellery article. %% {{Hurdles and Limitation of Hallmarking in India}} %% Apart from technical and legal reasons the mindset of consumer and jewellers may also come in the way of effective implementation of the law. Hence without working on bringing awareness in the masses, it is practically not possible to expect complete success. A few of the cause of concerns are as follows:%% {{Price:}} While gold has come up as a good investment option, in India it is still looked as an article of adornment. Given the fact that hallmarked jewellerycome from higher price, many customer may not want to pay that extra price. Many jewellrs also may not want to invest in getting license, which does not help in boosting their sale.%% {{Information dissemination: }}Before any decision-making, a clear communication with the industry is mandatory, especially if it is about implementation of any Act that directly concerns the business. Apart from the industry, a proper information dissemination plan for the public also must be planned so that people realise the importance of hallmarking and understand that the primary objective is to safeguard their interest and money against any fraud of adulteration. %% {{Lack of logical and step wise implementation: }}Loopholes like poor infrastructure, non-clarity about the onus of the fault and absence of direct redressal forum—are factors that discourage people from looking at the idea in a positive light. Apprehensions fill minds of people associated with the trade when government talks about making hallmarking mandatoryin metro cities and later in the country without taking into consideration small yet important aspects of the business that might get severely hampered due to unrealistic rules.%%

{{Opinions}} %% {{BachhrajBamalwa, Chairman, GJF:}}Currently hallmarking of jewellery in India is a voluntary thing, the amendment bills wishes to make hallmarking of precious metal mandatory. However, there are many issues and hurdles in making hallmarking mandatory in India. One of the significant hurdles is the lack of infrastructure and requirement of obtaining a licence to sell a quality product. There are approximately 190 hallmarking centres in India, but before making hallmarking mandatory around 5000 hallmarking centres will be required. In India where the traditional jewellery is handmade and uses other metals for soldering, but now we have solders of same quality as of gold, so this is no longer a problem. In terms of technology, the country is ready to have hallmarking as a rule, but implementation of the same is a problem. Presence of cadmium (a metal commonly found in all jewellery which may create problem in measuring right caratage) in the jewellery do not create a purity problem and hence the government should take a lead in creating awareness among jewellers and artisans before imposing any ban. Today, more than 50 per cent Indian jewellers are open to right and true hallmarking. All we now need is proper planning with consultation and regular awareness programmes to make hallmarking a success in India. %% {{Vinod Hayagriv, Managing Director, CKC Sons: }}The whole idea of hallmarking is at a nascent stage, though it has been quite some time since attempt has been made to implement it effectively. As of now, there are several amendments that have been suggested and it’s all in progress.I believe there are around 250 Assaying-hallmarking centres in India and it is obvious that a lot more are required. The technology required for implementation of hallmarking very much exists in India. Also, we need to trust the testing centres, which are always conclusive. More than the jewellery, the use of cadmium solders is harmful for the artisans using them. Ignorance is the cause behind the continuous usage of cadmium solders. Talking about Indian jewellers, it’s difficult to point out actually how many are ready for the mandatory implementation of hallmarking.However, change cannot be denied and jewellers’ body like GJF is in process of educating people. Apart from efforts at the government and business level, we need self regulation. The BIS and GJF is jointly working towards this subject and we should be able to see progress in the next 12 months.%%

{{Ashok Minawala, Past Chairman, GJF:}}We know that rest everything is in place, however certain things that the industry and the BIS needs to take care are as follows: $$ {[]}Address the country before making hallmarking mandatory in metro cities. {[]}Inform the industry about the roadmap of the implementation clearly. {[]}The industry opposes the idea of license. {[]}Infrastructure should be taken care of before the legislation is introduced. {[]}A committee with members from trade should be formed across the nation prior to implementation. {[]}Exemptions of articles from hallmarking should be clearly defined with understanding of ground realities to avoid confusion. {[]}Penal provision should not lead to cancellation of license and prosecution and once hallmarked the jewellers should not be held responsible later. {[]}It is observed that there have been cases of favouritism in the process of issuance of license of hallmarking centres, which is unjust and against basic fundamentals of Central Government. The BIS must also act against centres that have been allotted license of hallmarking and they are misusing the same. {[]}There should be a one-time registration feeby BIS against the current once-in-three-years rule. {[]}Any change in the Act must be done in consultation with the industry or by taking the industry into confidence. For example, use of cadmium in soldering of jewellery has been banned. But more than 90 per cent jewellery being hallmarked today contains Cadmium. No awareness programmes were conducted for the small artisans before implementing the ban. %% {{Bureau of Indian Standard website states:}} %% Hallmarking of Gold Jewellery/Artefacts had commenced in the year 2000 and the Hallmarking of Silver Jewellery/Artefacts was introduced in the year 2005. No other precious metal has been brought under Hallmarking Scheme.%% The Hallmarking Scheme is gradually progressing and as on date more than 10,000 jewellers have been licensed by BIS for getting their products Hallmarked. There are about 200 Assaying & Hallmarking Centresrecognised by BIS for carrying out the assaying and hallmarking activity.%% There are Indian Standards for gold jewellery/artefacts, silver jewellery/artefacts, their test methods, requirements for Assaying and Hallmarking Centres and relevant matters. The Hallmarking activities are strictly accordingly to the relevant Indian Standards.%% An Amendment to the BIS Act, 1986 has been proposed and pending with Government of India.%% There is no plan, as on date, with BIS for introduction of mandatory Hallmarking in India. As and when the Government of India decides on such issue, follow-up actions will be taken by BIS.$$ The BIS is continuously working for spreading awareness on Hallmarking. Programmes are being organised for creating awareness on Hallmarking amongst both consumers and jewellers. Publicity through electronics and print media are also being done.$$ On a visit to the BIS website www.bis.org.in information can be accessed on the Hallmarking Scheme as well as the current status of licensed jewellers in India.$$