Saturday, December 15, 2007

Madatory Hallmark from Jan 2008: The Fallout

As I had promised earlier I am covering the story of the BIS mandate to make Hallmarking cumpulsory from Jan 2008. It was pretty evident (to us) that this implementation will have its fair share of hiccups. For a preview of what the issue is about read our earlier post.

On 14th Decemebr 2007, we received a notice from the Karol Bagh Jewellers' Association (which we are a member of) to observe a 'bandh' against the BIS mandate. I am quoting the notice verbatim:
As per the decision of All Delhi Sarafa Association and Delhi Bullion Association there is a call for "Jewellers Bundh" on Friday 14th Decemebr 2007, against the implementation of "Hall-Mark BIS". As the law is very tough and will bring Babu Raj in the industry. Jewellers had asked for lots of amendments for which BIS & GOvt. has not responded positively, so this bundh is being observed. Kindly co-operate and unite together.
Lets analyze some of the demands of the jewellers:

  • The jewellers want the year markings viz 'A', 'B', 'C'... and so on be made optional or done away with. This years markings is 'H' and soon its going to be 'I' for the next year. In 2008 jewellery of last year and years before that, might not necessarily be attractive to a customer.
  • The Assayists bill a minimum of Rs. 350 even though individual items only cost as low as Rs. 50 to get hallmarked. So if a jeweller went to get just 1 item hallmarked, they would be charged the minimum amount. This amount cannot be passed to the consumer as making charges for a small item for e.g a earring, top or ring.
  • Jewellers in other parts of the country like Gujarat claim the lack of enough hallmarking centres around them to enable easy and frequent hallmarking.

This is an initial list and we are sure there are many more.

On the other hand the govt's move is clearly aimed at helping the consumers who have been a 'cheated' lot. And such a standardization would give some peace of mind for the consumers.

Its clearly a battle of profits vs purity.

Updated: 17/01/08

Solitaire International( a Jewellery trade magazine ) has an article covering the hurdles for countrywide adoption of Hallmarking at http://tinyurl.com/2s6q6f

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