"Mandatory hallmarking with HUID marks a shift from certification to traceability." Discuss its role in consumer protection and in formalising the jewellery sector.

Section 14 of the BIS Act, 2016 allows the Centre to make hallmarking mandatory [2]. Earlier, the hallmark only certified purity. Since 1 April 2023, registered jewellers may sell only gold that carries a 6-digit alphanumeric HUID [3]. The HUID links each article to its test, its testing centre and its seller, so the stamp has become a traceable record.

From certification to traceability

• An older purity stamp could be copied, and a buyer could not check whether the piece was ever tested. The HUID is generated by the BIS server only after testing at a recognised Assaying and Hallmarking Centre (AHC) [1].
• API-integrated XRF machines and timestamps prove that testing happened before laser marking [1].
• Transfer HUID records movement between jewellers, which curbs duplicate or fraudulent marks [1].

Role in consumer protection

• It reduces information asymmetry. The BIS CARE app, available in 12 languages, shows a piece's purity, weight, photos, jeweller and AHC [1].
• It guards against under-caratage, which matters most to women and rural households who hold gold as savings [1].
• Digital checks are backed by random sampling, AHC audits and raids when complaints come in [1].

Role in formalising the jewellery sector

• Registered jewellers rose about 5.5 times, from 43,153 in 2021 to 2,36,624 in 2026 [1].
• Registration on Manak Online/NSWS is free, instant and valid for life, which lowers compliance costs for MSME jewellers [1].
• Every hallmarked sale leaves a digital audit trail tied to a registered seller. This supports the scheme's goal of export competitiveness [1].

Limitations

• Coverage is not national. Only 392 districts are notified, because coverage depends on a district having an AHC [1].
• AHCs grew only from 948 to 1,565, so each centre now serves about 151 jewellers instead of about 46 [1].
• Silver hallmarking is still voluntary. Since 1 Sept 2025, a HUID is required only on silver that is hallmarked [4].
• Household gold bought before 2023 remains untraced. Parliament's Standing Committee has examined these hallmarking gaps [5].

HUID has made purity verifiable and drawn the jewellery trade into the formal economy, but traceability is not yet universal. The next steps are to set up AHCs in districts not yet notified, publish sampling failure rates and set a timetable for mandatory silver hallmarking, in line with the Standing Committee's oversight [5]. This would make the consumer's right to be informed real at every shop counter and advance SDG 12 on responsible consumption.