Traders worried about newly-introduced gold jewellery resale rule

The Ministry of Economy and Commerce has issued new sales invoice for gold jewellery shops to protect the rights of customers.

The move is part of the Ministry’s decision last month to bring in fresh regulation for the sale of gold and jewellery.

Market sources told The Peninsula the Consumer Protection Department (CPD), which works under the Ministry of Economy and Commerce, met with representatives of gold shops in the country and circulated among them a draft copy of the new invoice explaining the fresh regulations.

According to the proposed regulations, jewellery shops are expected to consider gemstones used in gold jewellery as gold when customers resell used ornaments. At the meeting, shop owners reportedly expressed concern over this proposal.

“We received a notice from the CPD to attend a meeting on June 29 to discuss new rules regulating sale of gold”, said a salesman of a gold shop in Doha.

“I attended the meeting with a dozen other representatives of gold shops. CPD gave us a sample of new sales invoice with full details including date, invoice number, names of the shop and buyer, means of payment, number of items, specifications, trademark, number of pieces, weight, carat, colour, making charge, total amount paid and seal and signature of the seller”, said the salesman.

A number of other issues related to the sale of gold and jewellery were also discussed at the meeting.

“At the meeting, the CPD officials wanted the shop owners to consider gemstones used in gold jewellery as gold when customers resell old jewellery to gold shops. It isn’t reasonable because we buy gemstones from manufactures at the rate of gold and sell it as it is. But when we sell old jewellery to manufactures and factories they don’t count gemstones as gold”, said a trader who attended the meeting.

The shop owners expect the authorities to reconsider the proposal to consider gemstones as gold during the resale. 

“The CPD officials told us to hold the next meeting after Eid Al Fitr for further discussion on the issue and come to a decision,” the sources added.

Explaining how the outlets evaluate the resale value of gold jewellery, a trader said: “Ideally, we deduct QR6 for customs duty, QR10 for making charges and about QR15 for our charges per gramme of old gold jewellery. A set of gold jewellery worth QR50,000 has a resale value of QR40,000 if gold prices does not witness a steep fall.”

Courtesy: thepeninsulaqatar.com