Gold Traders Seek more time for Jewellery Hallmarking

With the date of obligatory hallmarking drawing close to, the gold dealer has sought a clarification from the Bureau of Indian Standards (BIS) on the destiny of the inventory of 20-carat, 23-carat and 24-carat purity mendacity with jewellers.

The authorities has introduced hallmarking obligatory from June 16.

The commerce has knowledgeable the BIS that since March 2020, because of the pandemic scenario and lockdowns, a majority of jewellers couldn’t get rid of their non-hallmarked inventory. The commerce has informed the bureau that it could require greater than a yr to get rid of this.

Jewellery associations have estimated that out of 5,000 tonnes of gold inventory accessible with jewellers, 3,000 tonnes are of non-prescribed caratage (20, 23 and 24 carats), which when melted into the grades as prescribed by the BIS — 14, 18 and 22 carats — would trigger a lack of 300 tonnes of gold, equal to Rs 1.5 lakh crore.

The jewellers have requested the BIS to incorporate 20, 23 and 24 carats jewelry throughout the ambit of hallmarking to keep away from this loss.

“This caratage issue needs to be addressed as many states in the country like Maharashtra and others use 20- and 23-carat gold for jewellery,” stated Ashish Pethe, chairman of the All India Gem & Jewellery Domestic Council who has attended the conferences of a committee fashioned by the federal government on hallmarking.

Trade executives additionally expressed concern over the unfold of assaying and hallmarking centres (AHCs), and stated consideration of the variety of centres per state was not a ample criterion to gauge the adequacy of present AHCs.

The commerce has highlighted to the committee that 33% of the overall districts have been lined by BIS-recognised AHCs and the focus of such AHCs was centred principally on the gold jewelry manufacturing centres. It has additionally been steered by the gold commerce that in areas with insufficient AHCs, the AHC be requested to gather articles from jewellers, and the bills be borne by the AHC.

The gold trade has additionally raised issues on the gold jewelry that’s deposited on the banks and NBFCs in opposition to which loans are sanctioned. In case of default by clients, as per Reserve Bank of India pointers, the lenders ought to public sale the jewelry as obtained.

“We have sought a clarification on the matter that if the purity of the jewellery to be sold by the banks is not as per the fineness stated in the Indian standards, then what should be the course of action to be followed by the banks,” Pethe added. S-ET

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