The Hallmarking (Hallmarking Act Amendment) Regulations 1998

Explanatory Note

(This note is not part of the Regulations)

These Regulations amend the Hallmarking Act 1973 (“the 1973 Act”). In regulation 2, paragraphs (2), (3), (4), (5), (6), (11), (12) and (14) are made under section 2(2) of the European Communities Act 1972 (the 1972 Act) regulation 2 paragraphs (7), (8), (9), (10), (13) and (15) are made under section 4(7) of the 1973 Act.

The amendments made under the 1972 Act are made for the purpose of making the provisions of the 1973 Act consistent with Article 30 of the E.C. Treaty as explained, in relation to the importation by one Member State of articles made of or comprising precious metals from another Member State, by the European Court of Justice in the case of Houtwipper (Case C-293/93) ([1994] ECR 1—4249). The Judgment of the Court was delivered on 15th September 1994.

The definition of “approved hallmarks” in section 2(1) of the 1973 Act is expanded by the addition of a new paragraph (d). This encompasses marks struck by an independent body in another Member State, which have been struck in accordance with the law of that State and which contain information which is equivalent to that provided by the assay office mark and the standard mark which may be struck under the 1973 Act and which is intelligible to consumers in the United Kingdom (regulation 2(2)).

Articles may, on request to the assay office, be struck with any of three optional marks—a date letter, in accordance with such distinct, variable date letter as directed, in writing, by the British Hallmarking Council (the date letter was previously a mandatory requirement), the relevant pictorial mark denoting the standard of fineness of an article of precious metal (also previously mandatory) and such other mark as may be directed by the British Hallmarking Council (regulation 2(7)). Provision is made to the effect that failure to mark an article of precious metal with any of the three optional marks will not render an article unhallmarked (regulation 2(8)).

In accordance with the amendments to Part I of Schedule 2, the offence relating to provision of information in respect of origin is omitted (regulation 2(11)).

Part I of Schedule 2 is substituted by a new Part. The amendments remove the distinction previously drawn in the Schedule between the assay office mark and standard mark to be affixed to articles made in the United Kingdom and those marks to be affixed to articles made elsewhere. Provision is made for additional finenesses to be struck in the United Kingdom. Part I of Schedule 2 also sets out the three optional marks and provides that in the case of gold, the optional mark may be struck alongside all millesimal fineness marks which United Kingdom assay offices can strike, whilst in the case of silver and platinum, the relevant optional mark may be struck alongside millesimal finenesses over 925 and 950 respectively (regulation 2(15)).

Consequential amendments are made to the Hallmarking (International Convention) Order 1976 (regulation 3).

The Regulations will come into force on 1 January 1999. A Regulatory Impact Assessment has been drawn up by the Department of Trade and Industry and is available from Consumer Affairs Directorate 1e, Bay 464, 1 Victoria Street, London SW1H 0ET (Tel: [phone]). Copies have been placed in the libraries of both Houses of Parliament.