Vijayawada: Gold traders prepare to follow hallmark rule

Vijayawada: Gold and jewellery customers need not go to corporate jewellery shops to purchase hallmarked jewellery henceforth. They can buy the hallmarked gold articles from the small and medium shops/showrooms also from July 1 as the Union government issued orders for sale of only hallmarked jewellery for the traders, whose turnover is more than Rs 40 lakh.

The government issued orders to the jewellers to register their names with Bureau of Indian Standard(BIS) and sell the hallmarked (stamped) gold articles. The gold articles made by the traders or purchased by the traders are tested at authorised centres known as Recognised Assaying and Hallmarking centres. The traders with turnover of Rs 40 lakh per year must sell the hallmarked (stamped) jewellery only. Traders with turnover below Rs 40 lakh per year are exempted from the rule.

The BIS Hallmarking is done by privately owned Hallmarking centres. These centres get recognition from the BIS and collect charges from the traders for testing the quality and stamping. Hallmarking is the accurate determination and official confirmation of the proportionate content of metal in a gold article. Gold and jewellery with 22 carat, 18 carat and 14 carat will be tested at these centres. As per the orders, the gold traders must register their names by July 1.

Kona Srihari Satyanarayana, joint secretary, The Bezawada Jewellers and Bullion Merchants Association, said the gold traders have to get the gold article tested at the registered hallmarking centres before the sale. The sale of hallmarked jewellery will increase the transparency on the quality and the trader. He said the gold and jewellery traders have started registration of their names online with the BIS and added it is very easy process. The traders can register their name logging to www.manakonline.in .

On the other hand, the traders have to pay gold quality testing charges to the hallmarking testing centres. It is estimated that more than 5,000 gold jewellers in Andhra Pradesh will register their names with the BIS to sell the hallmarked jewellery.

The hallmarking centres are very limited in number in the state. Only six hallmarking centres are in Vijayawada. Gold traders with turnover of Rs 40 lakh in the towns like Nuzvid, Gudivada, Jaggaiahpet, Pedana and other towns have to come to Vijayawada for testing the quality of the metal and hallmarking. Setting up hallmarking centre is expensive. It requires machinery and trained workers.

Javvadi Appaji, gold and silver trader, Gopal Reddy Road, Vijayawada, welcomed the decision taken by the Union government making mandatory that the traders must sell hallmarked jewellery from July 1.

He said the gold and jewellery customers will get assurance from the BIS on the quality of the purchase they made. He said hallmark has five types of logos and will enhance the confidence of the customer on purchase of gold articles.

He said the sale of hallmarked jewellery is in practice for more than 10 years. But, the Union government has made it mandatory from July 1 this year.

The officials of the BIS are trying to create awareness among the gold merchants to register their names by July 1. On the other hand, the price of gold articles is likely to increase because the traders spend extra money for hallmarking. The hallmarking centres have to pay to the Union government to get registration and it is expensive.

It is estimated that less than 100 hallmark centres are in the state. It will take a long time, to set up more hallmarking centres. Till then, the gold traders have to depend on the limited hallmarking centres.