The Bureau of Indian Standards (BIS) has intensified its enforcement of the six-digit Hallmark Unique Identification (HUID) regulation, taking legal action against jewellers who fail to comply.
The regulation, effective from April 1, 2023, mandates that all gold jewellery display a six-digit HUID code to ensure authenticity and traceability. Despite efforts to promote compliance, many jewellers have struggled to adhere to the new standard, prompting the BIS to take stringent measures.
Crackdown on Non-Compliance
Since the introduction of the six-digit HUID regulation, the BIS has been conducting raids across various states to ensure compliance. Reports indicate that several jewellers have already faced criminal charges for failing to display the HUID on their gold ornaments. This crackdown is part of the BIS’s broader effort to uphold industry standards and protect consumer interests.
The BIS’s enforcement actions have targeted jewellers who continue to sell gold jewellery with the outdated four or five-digit hallmarks. By holding these jewellers accountable, the BIS aims to achieve full compliance with the new regulation, which has seen only 70-80% adherence thus far.
Jewellers’ Opposition to the New Regulation
The enforcement of the six-digit HUID has sparked opposition from jewellers, who argue that the costs associated with converting existing stock to the new standard are prohibitive. The Jewellers Association of Delhi-NCR has been vocal in its demands for government assistance. Ramesh Manchanda, a representative of the association, explained, “The traders have four and five-digit hallmarking jewellery stock in billions and if you get jewellery hallmarked once, it costs Rs 53.10. Adding to this he further said that after checking the purity of the jewellery Rs 40.50 is taken from us for tagging charges. In this, Rs 8.10 for GST and Rs 4.50 for BIS expenses are also charged. In such a situation, if a six-digit tag is added on the jewellery again, then crores of rupees will be spent, so the government should think about this.”
The Hallmark Unique Identification (HUID) System
The six-digit HUID system is designed to improve the traceability and authenticity of gold jewellery. Each piece of jewellery must now bear this unique identifier, which functions similarly to a 12-digit Aadhaar card for individuals. The HUID code ensures that the jewellery meets the purity standards set by the BIS.
The enforcement of the six-digit HUID hallmarking system represents a significant regulatory shift for the jewellery industry. While the aim is to ensure higher standards of purity and consumer protection, the financial and operational impact on jewellers cannot be overlooked. The industry’s pushback highlights the need for supportive measures to facilitate compliance without disproportionately affecting business operations.
