March 4, 2023; HUID-based hallmarking for gold jewellery and artefacts mandatory from April 1St 2023. What happens if they do? What is HUID - based hallmark? A ReferencePepper!
The Ministry of Consumer Affairs, Food and Public Distribution, India made an official statement that sale of gold jewellery and gold artefacts without the six-digit alphanumeric HUID shall not be permitted from April 1. This is being implemented to ensure quality gold products for consumers in India.
“To promote quality culture in micro scale units, it has been decided that the BIS will provide 80 per cent concession on the certification/minimum marking fee across various product certification schemes.” The Bureau of Indian Standards (BIS) was involved in this decision making.
BIS (Bureau of Indian Standards) is the national standards organization of India.
What is Hallmark and why do we need Hallmark?
We mostly buy Gold jewellery on special occasions or for investment purpose. It becomes very important to check Hallmark before buying Gold jewellery to ensure that it is of promised purity so that we get what we pay for.
As defined by BIS (Bureau of Indian Standards) Hallmarking is the accurate determination and official recording of the proportionate content of precious metal in precious metal articles.
In simple words, BIS Hallmarking is a system that helps to determine the purity of gold and silver jewels sold across the country. (In India, at present two precious metals namely gold and silver have been brought under the purview of Hallmarking).
Think of it as certification issued by the BIS after evaluating and testing gold articles alloting some marks to certify the purity and authenticity of that gold.
Hallmark consists of 3 symbols which give you some information. In this, the first symbol is BIS logo, second symbol indicates purity and fineness and the third symbol is the HUID. Before buying any piece of gold jewellery you have to see all these 3 symbols.
Source: https://doca.gov.in/blog/bis/hallmark-unique-identification-huid-number-an-introduction/
Hallmarks are thus official marks used in many countries as a guarantee of purity or fineness of precious metal articles. The principle objectives of the Hallmarking Scheme are to protect the public against adulteration and to ensure manufacturers to maintain legal standards of fineness.
What is HUID?
HUID stands for Hallmark Unique Identification. First introduced on July 1, 2021, HUID number is a six-digit alphanumeric code consisting of numbers and letters.
- 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.
Source: Department of Consumer Affairs official website
And how does one check the authenticity of hallmarked jewellery?
The 'Verify HUID' feature on the BIS Care App can help you check the authenticity of hallmarked jewellery.
The app is available on Google Play Store in Hindi and English. Once downloaded, go to the "check licence details" tab and then "verify HUID" section to verify the legitimacy of the product.
So who all are covered under this rule?
The registration is required for Manufacturer, Wholesalers, Retailers, Distributors involved in selling hallmarked gold jewellery either to each other or to the end Customer.
Who all are not covered under this rule?
Artisans, manufacturers who are manufacturing the gold jewellery on job work basis for the Jewellers and are not directly related to sale to any of the persons may be exempted from registration. However, they must have supporting documents in claim to their status.
Jewellers with annual turnover up to Rs 40 lakh do not fall within the purview of mandatory hallmarking. They may however get registration if they wish to sell hallmarked jewellery.
And there are more:
- Articles meant for export which have a specific requirement by the foreign buyer or any articles on it's way to India from a foreign country which will be hallmarked once it reaches here.
- Articles weighing less than 2 grams
- Articles intended to be used for medical, dental, veterinary, scientific or industrial
purposes - If an article is still not complete in it's final form for retail or sale and still in a stage of manufacturing
- Gold bullion in any shape of bar, plate, sheet, foil, rod, wire, strip, tube or coin.
- Jewellery which is only intended for display for International Exhibitions or domestic exhibition (as approved by Government Agnecy)
- Gold watch and fountain pen.
And what if a jeweller sells a jewellery without the new HUID-based Hallmark?
Non compliance is punishable with imprisonment for a term which may extend to one year or fine which shall not be less than one lakh rupees. it may extend up to five times the value of goods or articles produced or sold or offered to be sold or affixed or applied with a Standard Mark including Hallmark, or with both.
The jewellery is stamped with the unique number manually at the Assaying & Hallmarking Centre (AHC).
Prior to the introduction of the 6-digit alphanumeric HUID code, hallmarked Jewellery consisted of four marks – BIS Mark, purity in carat and fineness for gold, assay centre’s identification mark/number and jewelers identification mark/number. After HUID was introduced, the four marks got replaced by three marks – BIS Mark, purity in carat and fineness for gold, six-digit alphanumeric code.