HUID – Is it on the mark? M P AHAMMED, Chairman, Malabar Group shares his views

Noting that the billing process of retailers and the HUID system are not synced,
M P AHAMMED, Chairman, Malabar Group, tells Srabana Lahiri that immediate action is necessary to fill the gap.

How is the mandatory HUID rule affecting the jewellery industry just now?

The biggest advantage of HUID number is that it ensures that the customers get pure gold. HUID strengthens the track and traceability of jewellery, thus ensuring complete transparency in the value chain. The move will prevent infiltration of unauthorized gold into the supply chain. It will have a transformational impact on the jewellery industry. However, HUID and the billing process presently are not synced. Stating the HUID number in the bills needs to be made mandatory, as it will reduce tax evasion.

Is it an advantage for organized big players such as Malabar Gold and Diamonds?

HUID number safeguards consumer interest and creates a level playing field for organised players. It’s an extremely encouraging development for the organised section of the jewellery trade. On the back of growing consumer awareness, hallmarking has become an industry standard. Likewise, HUID number, in days to come, will emerge as an industry norm. The momentum in favour of transparent business practices will prompt a lot of jewellers to become organised. A strong consumer demand for hallmarked HUID jewellery will drive the growth of organised jewellery retail and gradually reduce the market share of the unorganised jewellery retail segment.

“A strong consumer demand for hallmarked HUID jewellery will drive the growth of organised jewellery retail and gradually reduce the market share of the unorganised jewellery retail segment”

M P AHAMMED, Chairman, Malabar Group

How are consumers reacting to it?

Curiosity among the customers on the utility of the HUID number is evident. It will help them check the purity of the gold jewellery, as well as get details such as the hallmarking date, the name of the hallmarking centre, and information on the jeweller concerned through the BIS Care mobile app. We have been selling BIS hallmarked gold jewellery since its introduction in 2000. So, we already have systems and processes and operational framework in place to roll out HUID. We have made sure that only ornaments with the HUID number are sold at our showrooms across the country from April 1, 2023.

What kind of support (Govt. or otherwise) does the industry still need to bring about this transformation? What recommendations do you have on how the Government needs to frame and implement the HUID policy?

Strengthening the network of authorised assaying and hallmarking centres will accelerate HUID adoption. The authorities need to extend all possible support to the jewellers keen to switch to HUID norm, as the transformation requires operational, procedural and logistics preparedness.

The Retail Jeweller