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Hallmark Registration

Hallmark Registration - an Overview

Hallmark registration in India, managed by the Bureau of Indian Standards (BIS), certifies the quality and purity of precious metals like gold and silver, aligning with specific Indian Standards. Through the BIS Hallmark Registration, jewellers can offer certified precious metal articles that meet high purity standards, as reflected in the hallmark’s Fineness Number and the BIS Hallmark Logo. For consumers, hallmarked jewellery guarantees quality assurances and authenticity, while BIS certified jewellers build trust and market credibility by displaying their Hallmark Registration Certificate. Each certified piece includes a Jeweller Mark and the Hallmarking Centre’s Mark, ensuring accurate determination of purity.

Jewellers pursuing BIS certification must go through the Jewellers Registration Scheme, requiring documentation like Address proof of company, GST registration certificate, and ID proof (such as Aadhaar card or PAN Card). Additional business details like annual turnover and compliance with the Gold Hallmarking Scheme are verified. Submitted jewellery is tested at BIS Assaying & Hallmarking Centres (A&H centre), following standards like IS 15820. Once approved, jewellers receive a hallmark license and the right to mark their products, ensuring compliance with the objectives of the Hallmarking Scheme.

BIS-certified jewellers also benefit from support in documentation, including requirements like the Chartered Accountant CA certificate and prescribed fees. Firms like Vakilsearch streamline the process, from company registration to product testing, allowing jewellers to meet BIS standards with ease. This hallmark registration process, backed by the Government of India, not only assures product quality but also strengthens the jeweller’s reputation, making BIS Hallmarked jewellery a trustworthy choice in the market.

Note: New Hallmarking Method (Effective 1 April 2023)

The Bureau of Indian Standards (BIS) introduced a new hallmarking method on 1 April 2023, making the 6-digit Hallmark Unique Identification Number (HUID) mandatory for all gold jewellery. This HUID must now be present on any gold jewellery sold or purchased in India.

Once jewellers receive a hallmark registration certificate, they can sell gold jewellery with the HUID, but only through certified outlets. The introduction of the HUID ensures each piece of jewellery is traceable and meets the required purity standards, enhancing transparency and trust for consumers.

Purpose of Hallmarking

The main purpose of gold hallmarking is to confirm the purity and fineness of the metal. This process helps stop fraud by guaranteeing that the gold jewellery meets the right standards. A hallmark includes details like the purity level and a special stamp that proves the metal is genuine. The same applies to other precious metals like silver and platinum, ensuring customers get the real deal.

Purpose of Hallmarking

Types of Precious Metals Covered Under Hallmarking

These hallmarking standards help ensure that gold, silver, and platinum items meet quality and legal standards, giving both jewellers and buyers confidence in the product's authenticity.

Gold

For gold, hallmarking ensures different levels of purity. The hallmark shows a stamp with the karat of the gold item. Examples include:

  • 999: This is 24-karat gold with 99.9% purity, the purest form of gold.
  • The hallmark also has symbols that show the gold's purity and authenticity.

Grading of Gold Based on Purity Levels

TypeGold %Other Metal %
24 karat gold99.99% of pure goldNo other metals
22 karat gold91.6% pure gold8.4% made up of other metals
21 karat Gold87.5% pure gold12.5 made up of other metals
18 karat gold75% pure gold25% made up of other metals

Silver

For silver, hallmarking confirms the metal’s purity with symbols like:

  • 925: This means the silver is 92.5% pure, which is the standard for quality silver.
  • Other symbols include the maker’s mark, town mark, and the lion passant, which represents sterling silver.

Platinum

For platinum, hallmarking shows the metal’s purity. The symbols include:

  • 99.9: The purest platinum, with 99.9% purity.
  • 95: This is 95% pure platinum, common for jewellery.
  • Hallmarks also include a diamond shape and balance scales to show the fineness of platinum.

These hallmark symbols help ensure that gold, silver, and platinum jewellery is of high quality and meets all required standards.

Role of the Bureau of Indian Standards (BIS) in Hallmarking

Role of the Bureau of Indian Standards (BIS) in Hallmarking

The Bureau of Indian Standards (BIS) plays an important role in maintaining the purity and quality of precious metals like gold, silver, and platinum. Here’s how BIS oversees the hallmarking process:

  • Creating Standards: BIS sets rules that make sure the fineness and quality of gold, silver, and platinum are maintained. This protects buyers from fraud.
  • Managing the Hallmarking Scheme: BIS runs the hallmarking scheme, which tells jewellers how to certify their products and follow strict quality standards.
  • Certification: BIS gives certifications to jewellers and manufacturers that meet these standards. Only certified jewellers can use the hallmark stamp to prove their products’ purity.
  • Ensuring Purity: BIS checks that the certified metals stay pure and fine, so consumers know they’re getting high-quality products.
  • Consistency: BIS makes sure the hallmarking process is the same for everyone. The hallmark symbols and procedures stay consistent for all jewellers.
  • Handling Complaints: BIS has a system where buyers can report any issues with hallmarked jewellery. BIS ensures these problems are solved to protect consumers.
  • Helping Manufacturers: BIS works with manufacturers to help them follow the rules and get their products certified under the hallmarking scheme.
  • Auditing and Checking: BIS regularly checks hallmarking centers to make sure they’re following the rules, keeping the process fair and trustworthy.

In this way, BIS ensures that gold, silver, and platinum meet high-quality standards, making it easier for consumers to trust the jewellery they buy.

Benefits of Hallmark Registration for Jewellers

Understanding the key benefits of hallmark registration highlights its vital role in ensuring quality, trust, and legal compliance in the jewellery industry for both jewellers and consumers:

Benefits of Hallmark Registration for Jewellers
  • Credibility: Hallmark registration boosts the credibility of jewellers by confirming that their products meet established standards for purity and quality.
  • Building Trust: The hallmarking process fosters consumer trust, as buyers are confident that the gold or silver they purchase is genuine and meets the correct fineness standards.
  • Consumer Confidence: Registered hallmark jewellery strengthens the client-customer relationship, enhancing consumer confidence in the quality of the precious metals being bought.
  • Legal Protection: Jewellers with hallmark registration gain legal protection by ensuring they comply with BIS guidelines, safeguarding them against potential violations.
  • Quality Assurance: The hallmark serves as a certification of the purity and quality of gold and silver, assuring consumers of the authenticity of their purchase.
  • Registration Certificate: The hallmark registration certificate adds significant value to the jewellery, acting as proof that the product meets regulatory standards.
  • Transparency: Hallmarking encourages transparency in the jewellery trade, promoting fair practices and protecting buyers from fraud.
  • Cost Efficiency: Though there are compliance costs, the advantages of hallmark registration, such as increased trust and legal protection, make the investment worthwhile.
  • Protection for Buyers: Hallmark registration ensures that consumers get gold and silver of the required quality and purity, protecting them from purchasing substandard products.
  • Enhanced Value: Jewellery with a hallmark holds higher market value due to the guarantee of its purity and compliance with BIS standards.

These advantages underscore the long-term positive impact of hallmark registration on the jewellery industry, benefiting both jewellers and customers by ensuring trust, quality, and transparency.

Legal Framework Governing Hallmark Registration in India

India's laws for hallmark registration ensure that precious metals like gold and silver meet high standards for purity and quality. These laws are based on the Bureau of Indian Standards (BIS) Act, 2016, which provides the rules for the hallmarking process.

Legal Framework Governing Hallmark Registration in India

Bureau of Indian Standards Act, 2016

The BIS Act, 2016 is the main law that gives BIS the power to set rules and standards for many products, including precious metals. BIS uses this law to make sure that products follow Indian standards and are safe and reliable. It allows BIS to issue notifications, orders, and rules to maintain these standards.

Mandatory Hallmarking Rules for Precious Metals

Starting on 1st July 2021, it became mandatory for all gold jewellery in India to have a hallmark. From April 1st, 2023, this rule expanded to include more jewellers and areas. Jewellers now must ensure that all their gold jewellery has the BIS mark and a HUID (Hallmark Unique Identification) number to confirm its purity and fineness. The hallmark shows the carat, purity, and certification from an approved assay centre.

Compliance with BIS Guidelines for Jewellers

Jewellers must follow BIS rules by registering with BIS and getting their products tested at BIS-approved assay centres. They must ensure that all gold jewellery and other precious metals meet the required purity and fineness standards. Jewellers must also display the hallmark symbol in their stores, so customers can trust the quality of the jewellery.

Enforcement of Hallmarking Standards

The BIS Act, 2016 and the Hallmarking of Gold Jewellery and Artefacts Order, 2020, require jewellers to get a BIS licence to sell hallmarked jewellery. BIS audits and checks jewellers and assay centres regularly to ensure they follow the rules. If jewellers don't follow these laws, they can face penalties, suspension of their licences, or legal action.

This legal framework ensures that the hallmarking process in India protects both jewellers and customers by guaranteeing the purity and quality of gold jewellery and other precious metal items.

Types of BIS Hallmarking Registration Certificate

In India, there are two types of BIS hallmarking registration certificates:

BIS Registration for Jewellers or Showroom

This registration type is mandatory for jewellers who manufacture or sell gold and silver jewellery. Under the hallmarking scheme, BIS grants hallmarking registration to jewellers at a specific location. Each sales outlet of a jeweller who wants to sell BIS hallmarked gold jewellery must obtain hallmark registration from BIS. Jewellers certified by BIS can get their jewellery hallmarked at BIS assaying & hallmarking centres.

    BIS Recognition of Assaying & Hallmarking Centre

    A hallmarking centre is a BIS-certified marking or third-party evaluation centre where the purity of precious metals is examined and stamped. BIS recognition is required for such centres, and they can apply for it.

      Eligibility and Requirements for Hallmark Registration

      If you're dealing with gold or precious metals, you need hallmark registration from the Bureau of Indian Standards (BIS). This shows your products are pure and meet quality standards.

      Eligibility and Requirements for Hallmark Registration

      Who Needs to Apply for Hallmark Registration?

      Below is the list of those who need to apply for hallmark registration:

      • Jewellers and Retailers: If you sell gold or precious metal jewellery, you must get hallmark registration to prove your products are real and meet purity levels.
      • Jewellery Manufacturers: If you make jewellery from gold or precious metals, you must register so your products can be certified before being sold.
      • Exporters and Importers: If you bring gold or other precious metals in or out of India, you need to register to prove your products meet quality standards.

      Who Is Not Eligible for Hallmark Registration in India?

      1. Suppose a hallmark jewellery registration is cancelled under sub-regulation 1(e) of Regulation 7 of the BIS (Hallmarking) Regulations, 2018. In that case, they cannot apply for a new certificate until one year has passed from the date of cancellation.
      2. An individual who has been convicted under the Act is not eligible to apply for hallmark registration for one year from the date of conviction.

      Documents Required for Hallmark Registration

      Following are the documents required for hallmark registration:

      1. Certificate of registration issued by ROCs along with MOA (memorandum of association);
      2. Registered partnership deed (in case the applicant is a partnership firm);
      3. CA certificate (in case the applicant is a proprietorship firm);
      4. CA certificate incase of turnover more than ₹40 lakhs;
      5. GST registration certificate;
      6. Sale or lease deed agreement;
      7. Income tax assessment order;
      8. Rent agreement with last rent receipt;
      9. Latest property tax receipt;
      10. Income tax assessment order;
      11. Registration with state government authority.
      12. Copy of Aadhaar card or PAN card or passport or driving license or voter ID or photo ID card issued by Gazetted Officer on official letterhead;
      13. Aadhaar-based verification or e-signature;
      14. Location map indicating the location of premises from the nearest landmark for each outlet.
      15. Copy of GST returns of previous financial year;
      16. In case the firm is new, an undertaking should be taken from the firm with the estimation of expected turnover & assurance to submit GST returns.

      Hallmarking Procedure in India

      The hallmarking procedure consists of three stages:

      Homogeneity Testing

      During homogeneity testing, all items within a given sample are taken and checked to ensure that they meet BIS regulatory standards.

      Purity Testing

      Purity testing is the most difficult step in the process because the items are thoroughly tested. To begin, one of 50 similar items is chosen at random for testing. Then, a preliminary test is performed on the surface of each item, followed by the collection of smaller samples from each item for further detailed examination. Finally, intense assay tests are performed to determine the gold's value, purity, and fineness.

      Methods Used for Purity Testing

      Through this detailed process, the hallmarking system protects consumers by guaranteeing that the precious metals they purchase meet the required standards for purity and quality.

      • Assay Testing: Assay testing is the traditional and highly accurate method of testing precious metals. It is used to determine the fineness of gold or silver by removing impurities.
      • X-Ray Fluorescence (XRF) Testing: XRF testing is a non-destructive method that uses X-ray technologies to measure the purity of metal objects. This method is quick and often used in hallmarking centres for initial testing.
      • Fire Assay Testing (Cupellation): Fire assay is considered one of the most reliable methods for testing gold purity. In this method, the metal is melted, and impurities are separated, leaving the pure metal. This method helps in confirming the exact percentage of pure gold.
      • Spectroscopy: This method uses light to measure the fineness of precious metals. It’s often used to analyse the composition and purity of gold and other metals.
      • Individual Item Marking: After this rigorous testing is completed, the final step is to mark individual items. Hallmarks are applied using laser, press, or hand marking based on the results of the tests.

      Procedure for Hallmark Registration in India With Vakilsearch

      Hallmark registration in India is essential for ensuring the authenticity and quality of precious metals and jewellery. With Vakilsearch, you can navigate this process effortlessly, gaining access to expert guidance and streamlined services tailored to meet your hallmark registration needs. Here is a detailed process outline:

      Procedure for Hallmark Registration in India With Vakilsearch
      • Consultation: The first step is to consult with Vakilsearch to understand the hallmark registration process, fees, and requirements. You can contact Vakilsearch through their website, email, or phone. We would do this process of hallmark registration online.
      • Documentation: After the consultation, Vakilsearch will guide you on the required documents and information to complete the registration process. This includes the application form, proof of ownership of the precious metal, and any other relevant documents.
      • Application Submission: Once the required documents have been collected, Vakilsearch will help you submit your hallmark registration application to the Bureau of Indian Standards (BIS).
      • Application Review: The nearest hallmarking centre will review your application and perform an inspection of the precious metal to ensure that it meets the required standards.
      • Hallmarking: After the inspection, if your precious metal meets the required standards, the BIS will hallmark it with a unique code that represents the quality and authenticity of the metal.
      • Issuance of Certificate: The BIS will issue a certificate of hallmark registration to you once the precious metal has been successfully hallmarked.
      • Renewal: The hallmark registration is valid for a period of one year, after which it must be renewed. Vakilsearch can help you with the renewal process.

      Disclaimer: The process of registering a Hallmark in India may take anywhere from 30 to 45 days, and it is crucial to ensure that all necessary documents and procedures are correctly followed to prevent delays or rejection of the application. Please note that Vakilsearch is not liable for any application rejections as it is solely dependent on the Hallmark center's criteria, and it is important to meet their requirements. However, Vakilsearch can provide assistance throughout the process to ensure a seamless and stress-free Hallmark registration process.

      Post-Registration Compliance for Hallmark License Holders

      After getting a hallmark license, businesses must follow rules to keep it active and avoid any penalties.

      Post-Registration Compliance for Hallmark License Holders
      • Ensuring Compliance with Hallmarking Guidelines

        Businesses need to follow BIS rules after getting their license. All gold and precious metals must be tested at BIS-authorized centres before they can be sold.

      • Testing and Certification of Precious Metals at BIS-Authorized Hallmarking Centres

        Jewellery and precious metals must be tested for purity at BIS-approved centres. They will then receive a certificate that proves they meet the required standards.

      • Regular Audits by BIS Officials

        BIS regularly checks (audits) businesses to ensure they are following the rules, including the proper use of the hallmark and testing procedures.

      • Maintenance of Records and Documentation

        Businesses must keep records of their transactions and certifications. These records should show details of the metals tested and the certificates received.

      • Renewal of Hallmark Registration

        The hallmark license must be renewed before it expires. Businesses need to submit a renewal application, pay a fee, and provide any updated information.

      Steps to Renew Hallmark License

      1. Submit Renewal Application: Complete the renewal form and send it to BIS.
      2. Pay Fees: Pay the renewal fee to continue the process.
      3. BIS Review: BIS will check your application and compliance history.
      4. Receive Certificate: After approval, you will get a new certificate to continue selling hallmarked products.

      Penalties for Non-Compliance or Delay in Renewal

      If businesses don’t follow the rules or miss renewing their licence, they may face:

      1. Fines: Businesses may have to pay fines for breaking rules or not renewing on time.
      2. Suspension of Licence: BIS can stop your license if you don’t follow the rules.
      3. Legal Action: If violations continue, it can lead to legal trouble and damage your business.

      By renewing on time and following the rules, businesses can continue operating and keep customers’ trust.

      How to Identify Hallmarked Jewellery?

      Identifying hallmarked jewellery is crucial for verifying its authenticity and ensuring you're investing in quality pieces that meet regulatory standards. Here are tips for identifying hallmarked jewellery:

      How to Identify Hallmarked Jewellery?
      • Look for the BIS Hallmark: The Bureau of Indian Standards (BIS) is responsible for hallmarking jewellery in India. Look for the BIS hallmark on the jewellery, which consists of a triangle shape with the letters 'BIS' inside it.
      • Check the Purity Grade: The hallmark will also include the purity grade of the metal, which ranges from 14 karats to 22 karats for gold jewellery and from 825 to 999 for silver jewellery. The purity grade will be marked alongside the BIS logo.
      • Look for the Jeweller's Identification Mark: Every jeweller that registers with the BIS is assigned a unique identification mark that is engraved on the jewellery. This identification mark can be in the form of a logo or a code.
      • Check the Year of Hallmarking: The year of hallmarking is also engraved on the jewellery, indicating the year in which the jewellery was hallmarked. This is important as the hallmarking standards can change over time.
      • Verify the Hallmark: You can verify the authenticity of the hallmark by checking the BIS website or by using the BIS mobile app. Enter the unique hallmarking code to verify the authenticity of the jewellery.

      Frequently Asked Questions (FAQs)

      questionmark

      What is the difference between Hallmarking and Assaying?

      Hallmarking is the process of certifying the purity and quality of precious metals like gold and silver, while assaying refers to the testing procedure used to determine the metal’s purity before hallmarking.

        questionmark

        How does Hallmarking ensure the purity of precious metals?

        Hallmarking ensures the purity of metals by testing them at BIS-authorized centres. If the metal meets the required standards, it is stamped with a hallmark that confirms its purity and quality.

          questionmark

          What types of jewellery require mandatory hallmarking?

          All gold jewellery and precious metal items sold in India must be hallmarked, as per the BIS rules. This applies to jewellery sold by jewellers and manufacturers.

            questionmark

            Can hallmark registration be transferred if the business ownership changes?

            No, hallmark registration cannot be transferred. If the business ownership changes, the new owner must apply for fresh hallmark registration under their name.

              questionmark

              How does the hallmarking process impact the price of gold jewellery?

              The hallmarking process can slightly increase the price of gold jewellery due to testing and certification fees, but it adds value by assuring customers of the jewellery's purity and quality.

                questionmark

                Are there any exceptions to mandatory hallmarking rules for custom-made jewellery?

                Yes, there are some exceptions for custom-made jewellery, particularly for unique or bespoke pieces. However, jewellers must ensure that such exemptions are allowed under BIS guidelines.

                  questionmark

                  Can consumers verify hallmark registration online?

                  Yes, consumers can verify hallmark registration through the BIS online portal, where they can check the details of the jeweller and the certification of the jewellery.

                    questionmark

                    What should consumers look for to confirm a valid hallmark on jewellery?

                    Consumers should look for four key symbols: the BIS logo, the purity mark, the year of hallmarking, and the jeweller’s identification mark. These confirm the validity of the hallmark.

                      questionmark

                      Are there different hallmarking standards for gold and silver?

                      Yes, the hallmarking standards differ for gold and silver based on their purity levels. For example, gold can be 24K, 22K, or 18K, while silver is typically hallmarked at 92.5% purity.

                        questionmark

                        What are the most common errors during hallmarking that jewellers should avoid?

                        Common errors include improper marking of the hallmark, incorrect purity stamps, and failure to maintain required documentation. Jewellers must ensure all steps are followed accurately to avoid issues.

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