Jewelry sector not ready for compulsory hallmarking - GJF
18 Sep '07
6 min read
India is desirous of joining the Vienna Convention on the Control of the Fineness and the Hallmarking of Precious Metals, 1972 to facilitate which hallmarking of gold jewellery is proposed to be made compulsory w.e.f.1st January, 2008.
The Draft Bureau of Indian Standards (Hallmarking of Precious Metals) Regulation, 2006 (“Draft Regulations”) have been formulated and circulated for comments and feedback.
It is an erroneous perception that hallmarking is compulsory in all countries which are signatories to the Vienna Convention.
This fact is recognized by the Bureau in its affidavit in the case of Akhil Bharatiya Upbhokta Congress v. M/s Aggarwal Jewellers before the National Consumer Dispute Redressal Commission.
On the other hand, Denmark, Norway, Switzerland, Sweden and Israel (all signatories to the convention) follow a system of voluntary hallmarking.
Although the All India Gems & Jewellery Federation (GJF) fully supports hallmarking it is opposed to the proposed manner of implementation.
The Federation believes that compulsory and mandatory hallmarking can only be introduced in a gradual and phased manner over a longer period of time.
If hallmarking is made compulsory, given the size of the market at least 3000 hallmarking centers will be required, whereas currently there are only 46 hallmarking centers.
The Indian market for gold jewellery is typified by its large, diverse and complex nature.Hasty introduction of a compulsory hallmarking scheme.
Without giving required attention to the complexities and difficulties of the trade will result in an adverse impact on the employment of 10 million people.
In India, hallmarking will severely prejudice the rural local jeweller against purchasing gold jewellery from a rural inhabitant since a subsequent sale to a larger jeweller without the hallmarking will not be permissible.
This will deprive the rural folks in distress and in need of funds, of the centuries old option of encashing their gold jewellery, resulting in immense negative impact on the social and economic structure of rural areas.
The introduction of hallmarking in the proposed manner, which presently does not specify hallmarks/standards for 19 or 20 carat gold will deprive the consumer of a legitimate choice since the absence of standards for 19 or 20 carat gold implies restriction on the sale of such articles.
The manufacturer recycling or recasting traditional and ancestral jewellery, which contains gold of different cartage, will be unable to correctly hallmark such jewellery.
Even greater is the difficulty in case of traditional gold jewellery which warrants use of gold of different cartage, where a single piece of jewellery may contain different parts including tiny beads and components and gold of different cartage.
Often jewellery is modified to suit the needs and size of the individual customer which may result in damage or obliteration of the hallmark, requiring re-hallmarking or exposure to penalties. Therefore before notifying the regulations, it is necessary to incorporate guidelines about repair and alterations including customer initiated modifications.
marketing@alchempro.com
