HUID Mandatory in Jewellery Business from April 2023

Gehna Team
May 9, 2023
12 mins read

Attention all Indian jewellers! Starting from April 2023, the use of the HUID (Harmonized System of Nomenclature-based Unique Identification) will be mandatory for all jewellery businesses in India. The HUID is a unique identification code that is used to identify and track the movement of goods across borders. 

In this blog, we will discuss what the HUID is, why it's being implemented, problems with the current system and how it will affect your jewellery business. 

What is the HUID? 

The HUID is a unique identification code that is assigned to every piece of jewellery that is manufactured or imported into India. It is based on the Harmonized System of Nomenclature (HSN) code, which is an internationally recognized system for classifying goods. 

Why is the HUID being implemented? 

The HUID is being implemented to improve the traceability of goods and to prevent the circulation of counterfeit products in the market. It will help to create a transparent and accountable supply chain, which will benefit both the consumers and the jewellery industry. 

Problems with Current System? 

Currently, the jewellery industry relies on manual processes to manage its inventory and sales. Each item of jewellery is marked with a BIS hallmark that ensures its purity, but there is no way to track these items once they are sold. This lack of transparency opens up the possibility of counterfeit products flooding the market, leading to a loss of revenue for legitimate businesses. 

How will the HUID affect your jewellery business? 

As a jewellery business owner, you will be required to assign a unique HUID to each piece of jewellery that you manufacture or import. You will also be required to maintain a record of the HUID codes for all the goods that you buy or sell. 

The HUID will also be required for customs clearance for all jewellery imports and exports. Failure to comply with the HUID regulations can result in penalties and fines. 

To comply with the HUID regulations, you will need to invest in the necessary infrastructure and technology to generate and maintain the HUID codes. This may include upgrading your existing software or investing in new systems that are capable of generating and tracking HUID codes.

Here are some of the ways in which the HUID will affect your business: 

  1. Compliance costs: The implementation of the HUID will require an investment in technology and infrastructure to generate and maintain the HUID codes. This will increase the costs of compliance for jewellery businesses, especially for small and medium-sized enterprises. 
  2. Improved traceability: The HUID will improve the traceability of goods across the supply chain. This will help to prevent the circulation of counterfeit products and improve consumer confidence in the jewellery industry. 
  3. Increased accountability: The HUID regulations will increase the accountability of jewellery businesses for the goods that they manufacture and sell. This will help to create a level playing field for businesses and promote fair competition in the industry. 
  4. Customs clearance: The HUID will be required for customs clearance for all jewellery imports and exports. This will increase the efficiency of customs clearance and reduce the time and cost of clearance for businesses. 
  5. Consumer protection: The HUID will improve consumer protection by ensuring that the products they purchase are genuine and of good quality. This will help to create a more trustworthy and reliable jewellery industry. 
  6. Industry competitiveness: The implementation of the HUID will help to create a more competitive industry by promoting innovation and investment in technology. This will help businesses to stay ahead of the curve and remain competitive in the changing landscape of the jewellery industry. 
  7. Training and education: The implementation of the HUID will require training and education for jewellery business owners and employees. This will ensure that they have the necessary knowledge and skills to comply with the new regulations and to generate and maintain the HUID codes. 

How Gehna-ERP Can Help? 

Implementing HUID can be a daunting task for jewellery businesses, but Gehna-ERP can help make the process seamless. Gehna-ERP is a comprehensive jewellery management software that offers features to manage every aspect of the business, including inventory, sales, and accounting. 

Gehna-ERP allows businesses to generate HUIDs for each item of jewellery that carries the BIS hallmark. These numbers can be printed on the invoice and the barcode of the item, making it easy to track its movement. The software also provides a user-friendly interface for managing the inventory, enabling businesses to keep track of the HUIDs assigned to each item. 

Gehna-ERP also offers a customer portal that allows consumers to verify the authenticity of the product they are purchasing. Consumers can scan the barcode of the product using their smartphone, which will take them to a webpage that displays the details of the product, including the HUID and the BIS hallmark.

Conclusion

The implementation of HUID is a positive step towards ensuring transparency and compliance in the jewellery industry. It will provide a level of security and confidence to consumers, while also helping businesses to manage their inventory efficiently. Gehna-ERP is a comprehensive software solution that can help businesses comply with the new regulations seamlessly. By using Gehna-ERP, jewellery businesses can focus on their core operations and leave the management of HUID to the software.