Hallmark Registration in India
Hallmarking of gold-based jewelry and artifacts in India is a mandatory requirement. Hallmarking embodies that the jewelry adheres to the underlying standard for purity. The Ministry of Consumer Affairs has mandated the gold hallmarking based on the Consumer Protection Act 1986.
The Bureau of Indian Standards promulgated the hallmarking requirements for gold and silver in 2000 and 2005, respectively. Since 1 Apr 2023, securing 6-digit hallmarking with a unique code (aka Hallmark Unique Identification Number) has become mandatory for gold transactions.
Significance of Gold and Silver hallmarking
For years, gold transactions have remained untransparent, allowing jewelers to sell gold without quality parameters. Customers typically need help identifying how the gold or silver jewelry is and thus end up paying more. This ambiguity has led to the birth of the hallmarking concept formulated explicitly by BIS to classify gold and silver jewelry for purity and fineness.
Hallmarking refers to a process of determining the quality/purity of gold-based jewelry and artifacts against the underlying norms formulated by the governing body. Hallmarking involves testing a gold or silver sample against the predetermined methods. If the sample qualifies for the test, the hallmark sign can be imprinted on the specimen, reflecting the required quality and purity
Types of Hallmarking Registration Certificates
BIS hallmarking registration is classified under two fundamental heads:
Jewelers or Showroom Registration:This type applies to showrooms and jewelers running physical outlets in a given area. Each outlet seeking a hallmarking certificate can follow the registration procedure discussed below
BIS Recognition of Assaying & Hallmarking Centre:Another option is to visit the BIS assaying & hallmarking centers and get the jewelry certified. The jeweler needs to apply via a prescribed procedure to enroll.
Benefits of Hallmark Registration
Despite being a mandate, hallmark registration provides jewelers and customers various benefits
- Hallmark creates a holistic environment that fosters transparency and fair trade practices.
- Hallmark standards are globally acknowledged, allowing jewelers and companies to compete internationally.
- It reinforces the trust among the buyers concerning the gold purity.
- Gold hallmarking reassures customers about the quality of the jewelry and artifacts.
- It saves customers from buying sub-standard alternatives, which pretend to be legitimate.
- Hallmark registration enhances the credibility of gold jewelry in the marketplace.
Paperwork Required: Hallmark Registration in India
Following is the list of documents required for Hallmark Registration in India:
- Aadhaar-based verification or e-signature
- Registration certificate issued by ROC and MoA (Memorandum of Association)
- Income tax assessment order
- Address proof of company or firm
- The sale or lease deed agreement
- Rent agreement with previous rent receipts
- Latest receipt of property tax
- ID proof of the Signatory
- Copy of PAN card, Aadhaar card, passport, DL, or photo ID card
- GST registration certificate
- Income tax assessment order
- Proof of annual turnover
- Copy of GST returns of the previous financial year
- Registration certificate issued by a state government
- Proof of a company/firm establishment
- Registered partnership deed (if the applicant is a partnership firm)
- CA certificate (if the applicant is a proprietorship firm)
- Declaration reflecting expected revenue and assurance to abide by GST norms (for new firm)
Hallmark Registration: A Step-by-Step Guide
BIS grants the hallmark registration as a part of the mandatory scheme, enabling jewelers to adhere to underlying standards to maintain the required purity of their products. No jeweler can be involved in gold transactions unless he/she has the Hallmark Registration. The authority is doing district-wise allotment of this registration to ensure proper monitoring.
Technically, a user with multiple gold outlets or showrooms must obtain Hallmark Registration for each unit. Registered jewelers must visit the BIS Assaying and Hallmarking Centres, which are responsible for hallmarking gold-based jewelry and artifacts.
The following section talks about the Hallmark Registration process in detail:
Step 1: File online application
First, visit the BIS manak portal and create an account. For this purpose, you must pass an OTP validation process. Once you get aboard, head to the right pane and select the Hallmark Registration application. Fill out the form with legitimate details and upload the required paperwork. The filing process shall end with the fee submission, which you can do on the payment page.
Step 2: Inspection
This step involves testing the gold sample for purity. The concerned BIS department would conduct this. The selected sample shall undergo the following tests:
Homogeneity testing
Homogeneity testing is all about testing the gold sample for underlying regulatory standards. This test is conducted on priority whenever someone enrolls for the Hallmark Registration.
Purity testing
Unlike previous tests, purity testing is more comprehensive and time-consuming. Under this test, the inspector does a random selection of 50 similar items from a given lot for testing. Furthermore, the process intensifies as the inspector picks the smaller pieces from each item for in-depth testing. The purity test reinforces the gold's purity, value, and fineness.
Individual item marking
Once the samples qualify for the above tests, the next step comes into effect, which is hallmark printing conducted by skilled experts. Laser and press are some common machinery used for this purpose. Hallmarking can sometimes be done without equipment, depending on the test outcome.
Step 3: Grant of Hallmark Registration
If the test outcomes are positive and show no non-compliance, the authority shall grant the Hallmark Registration to the applicant. The certification shall be shared via an electronic mode.
How does Hallmarked Jewellery differ from its non-standard counterpart?
Every hallmarked piece of jewelry entails a BIS sign imprinted in the triangle, reasonably visible to the naked eye. This logo/sign indicates authenticity, assuring that the jewelry has been tested for quality, fineness, and purity. The generic counterparts do not have such a marking; thus, it is advisable to stay away from them.
The hallmark also reflects the purity threshold of the metal, ranging from 14-22 karats (for gold) and 825-999 karats (for silver). These numbers would be visible alongside the BIS logo. Apart from these credentials, the certificated jewelry also reflects the jeweler’s unique code allotted by the BIS, making it easily recognizable among the sub-standard products.
The certified jewelry also bears the hallmarking year, predicting the production age of the product. This helps customers to make informed decisions. Customers can verify the jewelry on the BIS portal or app by using a unique hallmarking code.
Adviso: Secure Hallmark Registration without Confronting Legalities
Adviso enables clients to stay atop legalities and helps them do what matters the most. Confronting regulatory obstacles to securing hallmark registration is not everyone’s cup of tea. This is because hallmark registration revolves around stringent norms and complex procedures.
With our top-notch assistance and technical know-how, you can expect expedited application processing and prompt grant of certification. If you are not a compliance wizard and want to secure this registration without hassle, look no further than Adviso.
