Compulsory hallmarking requested for jewellery exports

Following the government’s decision to make hallmarking compulsory for gold within India, exporters have demanded that it is also compulsory for exports of 21 karat gold.

Many are urging the government to address the hallmarking of gold for export - Eina Ahluwalia- Facebook

The Indian government recently announced that, from January 2018, jewellers will have to get their gold jewellery hallmarked at 14, 18, and 22 karat before selling in India. However, exports were not touched upon in the government’s recent statement and, at present, it is the importing countries in West Asia that are responsible for hallmarking the jewellery they receive from India. A group of exporters are now calling for the government to extent this compulsory hallmarking to 21 karat jewellery that is exported to West Asia.

Pankaj Parekh, former Vice-Chairman of the Gem and Jewellery Export Promotion Council (GJEPC), explained the current situation, saying: “At present, 21 karat gold jewellery exported from India to the Gulf region is hallmarked and tested by the importing countries.”

Parekh urged the government to introduce hallmarking for exports too, especially to the West Asian region. Parekh also said: “While making hallmarking mandatory for jewellery exports is a necessity of the hour, the government should also take proactive steps to be part of the Vienna Hallmarking Convention.” The Convention includes 19 countries and regulations encourage proving the purity of gold jewellery before exporting so that it does not have to be tested again when it is imported.

The unorganised section of the jewellery market in India is sizeable and the government is seeking to organise it more through regulations such as the Goods and Services Tax (GST) and compulsory hallmarking. Greater regulation of the jewellery market will increase consumer trust and also make exports easier and so the government may well heed this request to make hallmarking compulsory for certain exports. 

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