The Gem and Jewellery Export Promotion Council has welcomed the government’s decision to introduce mandatory gold hallmarking but has asked for clarification on whether it applies to exports.
The GJEPC made a representation to Union Minister of Consumer Affairs Piyush Goyal seeking to, “explicitly clarify that jewellers having transactions only in the export stream are completely excluded from the purview of the Hallmarking Order,” ET Online reported.
“As Indian hallmarked articles do not have acceptance outside India, any legal interpretation that requires an exporter to comply with the hallmarking provisions wholly or partially, will increase the transaction costs in the export stream, making gem and jewellery exports unviable,” said the GJEPC.
The traders’ body also noted that jewellery sold at trade shows to foreign buyers should also be treated as export sales.
The mandatory gold hallmarking order had previously been scheduled to come into effect at the beginning of the year and was then delayed to June 1 due to the pandemic and local lockdowns. The government recently further extended the deadline to June 15. However, as local lockdowns are ongoing in many areas, jewellery businesses which had not registered for hallmarking before the lockdown may not be able to do so before June 15, especially smaller businesses in rural areas.
The All India Gem and Jewellery Domestic Council had requested a further delay in the roll out of mandatory hallmarking. The organisation argued that the current available hallmarks of 14, 18, and 22 carat are insufficient to provide for local demand as other purity grades are favoured in different parts of India and should thus be included as options, it said.
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