India plans anti-theft feature for hallmarked gold jewelry
What's the story
The Indian government is mulling a system to prevent the sale of stolen gold jewelry. The proposed mechanism would use a unique six-digit code, or Hallmark Unique Identification (HUID) number, assigned to each piece of jewelry. After a sale, the item would be tagged as "sold" against its HUID number. This would make it difficult for jewelers to reuse the same hallmark on another piece of jewelry.
Mechanism details
How the feature will work
The "sold" tagging will be a way to detect if a particular HUID code has been used before.
If the same number is entered into the HUID system for another piece, it would indicate that it has already been sold.
This development is particularly important in India, which is the world's largest gold jewelry market and where thefts are common.
Implementation plan
Current process of HUID inscription
At present, jewelers have to inscribe the HUID number and weight on each hallmarked gold article. For instance, a 2-gram gold ring would have its own unique HUID number.
When a consumer buys it, the retailer issues a bill with these details, making the item traceable.
Retailers would also have to maintain records of hallmarked articles and photographs of their HUIDs in their systems.
Compliance concerns
Jewelers fear increase in costs
The new compliance rules have raised concerns among jewelers, especially those who deal in made-to-order pieces. They fear that these rules could increase their costs.
However, a senior executive at a leading retail brand said the proposed system is feasible but could raise operational costs for retailers.
For example, if a consumer chooses a gold article and then asks for changes, it could create operational and compliance challenges for retailers.
Mixed responses
Focus on 0% making charges, say jewelers
Industry reactions to the proposed system have been mixed.
Anil Talwar, managing partner of Talwarsons Jewellers, said the industry is more concerned about keeping a check on jewelers offering gold jewelry at 0% making charges.
He suggested that the government should focus on curbing such malpractices instead of imposing additional compliance burdens on genuine and honest jewelers.