Page 24 - Bullion World Volume 03 Issue 6 June 2023

Bullion World | Volume 3 | Issue 6 | June 2023

being located in the industrial areas
The imported bars need to be brought under mandatory of major cities, the old daily gold from
hallmarking for traceability purposes as well, so as to curb jewellery shops for refining, as well
smuggled gold entering official channels, which often get as refined bullion from the refinery,
converted to duplicate 100 gm bars minted in the name of needs to be transported across
reputed refineries abroad. Smuggled bullion in various forms the consuming / retailer locations,
through secured logistics agencies
entering India through the airports and porous borders of
.who are regularly transporting
eastern India is estimated to be 300 tonnes per annum
gold by various modes, charging
Rs. 1000 and upwards for 1 kg of
1-Demand and bullion mostly artisanal workshops in the gold, depending on the distance,
consumption are concentrated unorganized sector – in smaller and these logistics expenses are
in the 10 jewellery manufacturing towns and cities, catering to the affordable for the jewellers and
locations like Mumbai, Rajkot, refining needs of smaller jewellers. bullion trade.
Ahmedabad, Kolkata, Chennai,
Coimbatore, Trichur, other major Unorganized refiners, including 7-Hallmarking of imported
jewellery retailing hubs like jeweller workshops, are running bullion bars: presently, all the
Bangalore, Hyderabad, New Delhi their own melting and refining units, bullion imported is in 1 kg bars of
etc. using the nitric acid method of gold 995 and 999 fineness from LBMA-
refining, which may not be able accredited gold refineries, mostly
Whereas demand and to produce adulterant free 995 or from Europe. However, often when
consumption of gold jewellery 999 bullion. Their bullion being in Indian buyers place their purchase
is spread all over India, with the the region of 990 fineness, may order for LBMA bars with the
majority of 60% happening in the five not come under good delivery vaulting agents abroad, what gets
southern states, 18% in Kerala, 18% parameters but need to be covered supplied to India may be non-LBMA
in Tamil Nadu, 10% in Karnataka, 7% with a different set of hallmarking non-standard bullion bars from local
in Telangana, 7% in Andhra Pradesh parameters in the 2nd phase of sources, flouting all quality norms
mandatory hallmarking of bullion. of bullion. Hence to ensure the
2-Geographical spread of BIS- quality of all bullion bars sold in India,
licensed gold refineries - mostly 5-the first phase of mandatory imported bars, too, shall be brought
in metro cities of Delhi, Mumbai, bullion hallmarking shall be under Indian hallmarking norms.
Ahmedabad, Kolkata, Bangalore, limited to 100 gm and 1 kg When tires or toys coming under
Cochin, Hyderabad, Himachal bars; exemption may be given for mandatory regime are imported
etc.; these 44 BIS-recognized gold below 100 gm bars. : Operations with ISI marks from BIS-recognized
refineries are willing and ready to and livelihood of these artisanal manufacturers abroad, bullion too
adopt mandatory hallmarking of their refiners may not get impacted by can be imported with mandatory
24 kt cast and minted bars of 995 or the mandatory regime of bullion Indian hallmarks of the BIS, for which
999 fineness. hallmarking if and when smaller the bullion manufacturers abroad
weights of below 100 gms are may have to take a BIS license. The
3-capacity of domestic BIS exempted from the purview of imported bars need to be brought
licensed refineries – totalling 2500 mandatory hallmarking of bullion. under mandatory hallmarking
tonnes of bullion per annum This will, in turn, help the smaller for traceability purposes to curb
Small refineries of up to 5 tonnes per jewelers and goldsmiths in smaller smuggled gold entering official
annum – 20 refineries towns / unorganized trade to carry channels, which often get converted
Medium refineries of up to 50 tonnes on their regular business without the to duplicate 100 gm bars minted
per annum -14 refineries botheration of searching for BIS- in the name of reputed refineries
Large refineries of up to 200 tonnes licensed gold refineries/ hallmarked abroad. Smuggled bullion in various
per annum- 10 refineries bullion bars at remote locations. forms entering India through the
airports and porous borders of
4-Unorganised segment of 6-logistics expenses for eastern India is estimated to be 300
bullion supply: there are other transporting old gold for refining/ tonnes per annum. Smuggling is
smaller non-BIS licensed refiners, bullion: the BIS licensed refineries detrimental to the national exchequer

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