• The Bureau of India Standards (BIS) has prohibited the sale of gold jewellery or gold artefacts without a six-digit alphanumeric Hallmark Unique Identification Number (HUID) after March 31, 2023.

• A decision in this regard was taken after due consultation with stakeholders in a bid to safeguard the interest of consumers.

• HUID gives 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 check any malpractice. 

• HUID is a secure system and poses no risk to data privacy or security.

What is hallmarking?

• Hallmarking is the accurate determination and official recording of the proportionate content of precious metal in jewellery/artefacts or bullion/coins.

• Hallmarks are marks used in many countries as a guarantee of purity or fineness of precious metal articles. 

• The BIS Hallmarking Scheme has been aligned with international criteria on hallmarking. 

• Hallmarking of gold jewellery was started by BIS in April 2000 to provide third party assurance to consumers on the purity of gold jewellery or its fineness. 

• The scheme for hallmarking of silver jewellery/artefacts was launched in October 2005. 

• Under the scheme, while the jewellers are granted registration to sell hallmarked jewellery, Assaying & Hallmarking (A&H) centres are recognised to assay the purity of the jewellery submitted by the registered jeweller, along with declaration of purity and to apply hallmark on such jewellery which is found conforming to relevant Indian standard including declared fineness. The recognition of an A&H Centre is done against IS 15820:2009.

• The main objectives of the Hallmarking Scheme are to protect the public against adulteration and to obligate manufacturers to maintain legal standards of fineness. 

• In India, at present two precious metals — gold and silver — have been brought under the purview of hallmarking.

• As per section 49 of the Bureau of Indian Standards Rules, 2018, if hallmarked jewellery purchased by the consumer is found to be of lesser purity than that marked on the jewellery, then the buyer/customer will be entitled for compensation which will be two times the amount of difference calculated on the basis of shortage of purity for the weight of such article sold and the testing charges.

• The annual consumption of gold which was estimated at 65 tonnes in 1982, has increased to over 800 tonnes presently. 

• About 80 per cent is for jewellery fabrication (mainly 22 carat purity) for domestic demand, 15 per cent for investor demand and barely 5 per cent for industrial use.

• Mandatory hallmarking of gold jewellery came into force from June 2021.

• Mandatory Hallmarking has been successfully implemented in 288 districts of the country with effect  from June 2021 with Hallmarking of Gold Jewellery and Gold Artefacts Order, 2022, and its amendment on March 4, 2022.

• At present more than 3 lakh gold articles are being hallmarked with HUID every day. As many as 339 districts have at least one Assaying & Hallmarking (A&H) centre.

• The Bureau of Indian Standards (BIS) said that 8.68 crore jewellery articles were hallmarked in the year 2021-2022.

Hallmark with 6-digit code mandatory

• Earlier, hallmarking of gold jewellery consisted of four marks — BIS logo, purity of the article as well as the logo of the jeweller and Assaying and Hallmarking Centre.

• The six-digit HUID number was introduced from June 2021.

• After the introduction of HUID, the hallmark consisted of three marks — BIS logo, purity of the article and six-digit alphanumeric HUID. Each hallmarked article has a unique HUID number which is traceable.

• Till now, the old hallmarked jewellery with four marks without HUID was also permitted to be sold by the jewellers along with the six-digit HUID mark. More than a year and nine months were given to jewellers to clear their stock of their four mark hallmarked articles.

• However, the simultaneous sale of two types of hallmarked jewellery by the jewellers was creating confusion in the mind of the common consumer.

• The issue was discussed with stakeholders and the ministry decided to allow only the sale of hallmarked gold jewellery with six-digit HUID number only from April 1 onwards.

• The ministry also clarified that the hallmarked jewellery lying with consumers as per old schemes will remain valid.

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