Hallmark Unique Identification (HUID) Number on Gold Jewelry.

Today’s edition of our Current Affairs will comprise a discussion on Hallmark Unique Identification (HUID) Number on Gold Jewelry. Read further to upgrade your UPSC CSE knowledge and also understand the topic’s relevance to the UPSC syllabus.

For Prelims: Economic and Social Development

Union Ministry of Consumer Affairs, Food, and Public Distribution, Hallmark Unique Identification (HUID) number, Department of Consumer Affairs, Bureau of Indian Standards (BIS).

For Mains: GS Paper II (Government policies and interventions for development)

About the HUID number on gold jewelry, Significance of the HUID number, Need for hallmarking of gold jewellery, Methods of verifying the hallmark, Some Government Initiatives.

Context

The Union Ministry of Consumer Affairs, Food, and Public Distribution recently announced that, as of April 1, the sale of gold jewelry will no longer be permitted without a Hallmark Unique Identification (HUID) number.

• This has been decided in consumer interest that after 31st March 2023 sale of gold jewellery and gold artefacts hallmarked without HUID shall not be permitted.

Probable Questions

What is HUID and why is it important for gold jewellery and gold artefacts? Why did the government say the new rule is in consumers' interests? (250 words, 15 marks)

About the HUID Number on Gold Jewelry

• The Department of Consumer Affairs website states that the HUID number is a six-digit alphanumeric code.
  • Earlier, the HUID used to be four digits. 
  • As of now both HUIDs (4- and 6-digit) are used in the market. 
  • However, after March 31 only 6-digit alphanumeric codes will be allowed.
• Aim of the HUID number: It is aimed at ensuring the purity of Hallmarked jewelry and checking any malpractice. 
• Usage of the HUID number: It is given to every piece of jewellery at the time of hallmarking, and is a unique identifier for each gold item. The jewellery is stamped with the unique number manually at the Assaying & Hallmarking centre.
• Way to check the HUID number: Before making a purchase, a potential customer can download the government-sponsored BIS CARE app on his or her Android phone and enter the 6-digit HUID to confirm its authenticity.

Related: Hallmarking of Gold Jewellery

Significance of the HUID Number

• According to the department, the HUID makes it easy to trace the individual piece of jewellery, and is a guarantee of quality.
• HUID is a secure system and poses no risk to data privacy or security. 
• HUID-based Hallmarking is a win-win for everyone. As it brings about transparency, ensures consumers’ rights and obviates the chances of Inspector Raj,
• In HUID-based Hallmarking, registration of jewellers is automatic with no human interference. 

Need for Hallmarking of Gold Jewellery

• Hallmark is a mark on gold jewellery which is affixed by an entity recognised by the Bureau of Indian Standards (BIS) to assure its fineness and purity. 
• Prevention from fraud: It is required in order to avoid being cheated, thus check the Hallmark whenever you purchase any gold jewelry.
• Ensure quality: The most obvious benefit of hallmarking is that the consumer is aware of the quality of the product she is buying and will not be cheated. 
• Good re-selling price: Since the quality of the jewellery is guaranteed, that piece will fetch a higher price when re-sold. 
• Use for loans: Banks are likely to give loans on better terms if the mortgaged jewellery is hallmarked.

Methods of Verifying the Hallmark

A Bureau of Indian Standards (BIS) Hallmark consists of three symbols:

• The Bureau of Indian Standards (BIS) logo, 
• A symbol to indicate the purity and fineness of the jewellery, 
• The HUID number.

The three categories of hallmarked jewellery, according to the government website, are: 

• 22K916 means that it is a 22 carat gold and the piece of jewellery has 91.6 percent gold. 
• 18K750 means that it is an 18 carat gold and the piece of jewellery has 75 percent gold. 
• 14K585 means that it is a 14 carat gold and the piece of jewellery has 58.5 percent gold.

Also Read: Crafting Metals: Art and Culture NCERT Notes for UPSC

Some Government Initiatives

Gold Monetization Scheme

• The government of India launched Gold Monetization Scheme on 5th Nov.2015. 
• BIS has played an important role in the finalization and implementation of the Gold Monetization Scheme in association with the Department of Economic Affairs and the Reserve Bank of India. 
• Under the Gold Monetization Scheme, Assaying & Hallmarking (A&H) Centres recognized by BIS have been qualified to act as Collection and Purity Testing Centres (CPTC).

Gold Control Act (1968)

• In 1962, the government imposed a few restrictions on the production and transaction of gold, and this led to the Gold Control Act (1968). 
• The Act was introduced to curb this issue and limit personal possession of gold. Excessive gold imports lead to a drastic devaluation of the Indian rupee. 

Launch of the Indian Gold Coin (IGC)

• India’s first-ever national gold coin i.e. the Indian Gold Coin(IGC) was launched by the Prime Minister in 2015.

News Source: The Indian Express

https://indianexpress.com/article/explained/explained-economics/gold-jewellery-without-huid-sale-april-1-what-is-this-importance-8479453/

Frequently Asked Questions

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