Starting April 1, 2023, the Indian government will only permit the sale of gold jewellery with a Hallmark Unique Identification (HUID) number. This new regulation means that all gold jewellery sold in India must carry a BIS hallmark and a six-digit alphanumeric ID embossed on the piece.
HUID was introduced to ensure transparency and protect consumers' rights, as it allows anyone to get existing jewellery hallmarked and obtain a true valuation of the gold. The HUID code also allows buyers to verify the claims made by jewellers regarding the purity of the gold jewellery. It can be verified on the BIS Care App, and if a jeweller has stamped a fake HUID code, buyers have a way to verify it and lodge a complaint against the jeweller.
The government introduced HUID to offer traceability of gold jewellery, and the code offers credibility to the hallmarking signs on the piece. The BIS has launched the BIS Care App, which helps gold jewellery buyers verify the authenticity of the HUID code. If there is a mismatch between the information provided on the app and the information provided by the jeweller, buyers can file a complaint. The HUID system is secure and poses no risk to data privacy or security.
Before the introduction of HUID, the government made BIS hallmark mandatory for the sale of gold jewellery and artefacts from June 16, 2021. The revised signs on BIS hallmarked gold jewellery are the BIS logo, purity/fineness grade, and a 6-digit HUID code.
To help businesses comply with the new regulations, the government will give an 80 percent concession in marking fees for micro units across different products and an additional 10 percent concession to all units in the North East.
Gold hallmarking was voluntary until June 16, 2021, when it became mandatory. The certification practice was made compulsory in a phased manner, with 288 districts following the hallmarking practice. An additional 51 districts are being added.
HUID is a six-digit alphanumeric code consisting of numbers and letters that is unique to each unit of jewellery. The number is stamped on the jewellery piece manually at the Assaying & Hallmarking Centre (AHC).
What are the hallmarking signs on gold jewellery?
The government has already made BIS hallmark mandatory for the sale of gold jewellery and artefacts from June 16, 2021. Further, the government has revised the BIS hallmark signs on gold jewellery from July 1, 2021.
The revised signs on BIS hallmarked gold jewellery are as follows:
- BIS logo
- Purity/Fineness grade
- 6-digit HUID code
Why HUID was introduced by the government?
According to the Department of Consumer Affairs, each piece of gold jewellery stamped with a HUID code offers a distinct identity to it. This offers traceability of that gold jewellery.
The HUID code offers credibility to the hallmarking signs on the gold jewellery. The BIS has launched an app called BIS Care App. This app helps gold jewellery buyers to verify the authenticity of the HUID code. If there is a mismatch between the information provided on the BIS Care App and the information provided by the jeweller, then a buyer can file a complaint as well.
The Department of Consumer Affairs stated, "HUID based Hallmarking, registration of jewellers is automatic with no human interference. It is aimed at ensuring the purity of Hallmarked jewellery and check any malpractice. HUID is a secure system and poses no risk to data privacy or security."
What is HUID?
Hallmark Unique Identification (HUID) number is a six-digit alphanumeric code consisting of numbers and letters. Every unit of jewellery will be given a HUID number during the hallmarking process, and it will be unique to that piece. The number is stamped on the jewellery piece manually at the Assaying & Hallmarking Centre (AHC).
The Union Government has mandated that all gold jewellery and artefacts sold after 31st March will have to carry a Hallmark Unique Identification Number (HUID). To tide over teething problems for businesses in complying with the order, the government will give an 80 percent concession in marking fee for micro units across different products and an additional 10 percent concession to all units in the North East.
The move is aimed at promoting a quality culture in micro-scale units. Food and Consumer Affairs Minister, Piyush Goyal, presided over a review meeting of the Bureau of India Standards (BIS) and directed to enhance the testing infrastructure in the country. These measures shall encourage micro small units, lead to scaling up of the testing facilities and develop a culture of quality consciousness among citizens, he added.
Gold hallmarking, which was voluntary in nature until June 16, 2021, is a quality certification for gold in the country. The certification practice was made compulsory in a phased manner, under which in the first phase 256 districts were covered, and 32 more districts were included in the second phase taking the overall districts following the hallmarking practice to 288. 51 more districts are being added.
"After March 31, 2023, jewellery having a four-digit Hallmark Unique Identification Number (HUID) as a hallmark cannot be sold. Instead, jewellery having a six-digit alphanumeric number as a hallmark can be sold," said the Department of Consumer Affairs on gold hallmarking.
What it means for consumers?
From April 1, 2023, if you visit your local jewellery store to buy gold jewellery, then ensure that apart from the BIS hallmark, there is a 6-digit alphanumeric ID embossed in the gold jewellery. For every piece of gold jewellery which is hallmarked by the Bureau of Indian Standards (BIS), a unique HUID code is given to it. The HUID allows buyers to verify the claims made by jewellers regarding the purity of the gold jewellery piece. The HUID code stamped on the gold jewellery can be used to track the entire journey of the jewellery piece from the manufacturer to the retailer. This provides consumers with greater transparency and ensures that they are getting what they pay for.
Additionally, the HUID code also helps in identifying counterfeit jewellery, which is a major problem in India. With the introduction of the HUID code, consumers can be confident that they are buying genuine and authentic gold jewellery. Overall, the implementation of the HUID code is a positive development for consumers as it provides them with greater transparency and ensures that they are getting genuine gold jewellery.
The author is a Chartered Accountant with 2 decades of experience into Accounting, Taxation, Auditing, Currently Author is founder and member of RRL Global Services an advisory and consultancy firm.
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