HALLMARK REGISTRATION

In India, jewellery is meant to be unique for every person, and every occasion, it adds a lot of value and sentiment. Therefore, while buying jewellery customer needs to be very careful in terms of the purity of gold, no matter from where you are buying or how much you are paying for it. Every jewellery in India requires certification & an authorized registration that license is said to be Hallmark license, this gives purity of the metal.

What is Hallmark?

A Hallmark can be word, name, symbol or device used by manufacturers to identify their goods and to distinguish their products from other goods which are manufactured and sold by others. Therefore, a hallmark is a symbol of trust, a unique identification for the customer buying jewellery.

Issuance of Hallmark license

In India, Bureau of Indian Standards (BIS) which is the authorized agency issue Hallmark license/ BIS hallmark license. It is necessary to keep the quality control for managing quality as specified under the BIS scheme for those who hold BIS hallmark license for gold as well as silver jewellery.

Regulation of Hallmark certification

The entire process and provision of Hallmark certification are governed by the BIS Act, 2016 and BIS Rules and Regulations, 2018.

Hallmark certification documents required

A jeweller can apply for hallmark license if he fulfils the following requirements for the application of hallmark approval:

Certificate of the registered company
Proof of report showing business premises of the jeweler
Signed BIS hallmark application
Identity proof of the person applying for the form
Payment of hallmark license fees
The signing of the agreement as per the prescribed format.

Importance of Hallmark Certification

Hallmark certification plays a vital role for jewellers in every aspect such as:-

It boosts your business
It adds value to the precious stone and trust in jewellery
It gives quality assurances for the jewellery product
Provides legal protection against infringement
It provides customer satisfaction
It helps in business growth.

Process of Hallmark Certification

Preparation of documents for BIS registration
Development of agreement on stamp paper of INR 100/- in the prescribed format
Filling of the hallmark application form
Pay the fee for application processing
An inspection will be done by the inspector of the concerned BIS department

Is it mandatory to obtain hallmark licenses?

The Government of India had notified rules and regulation for gold and silver jewellery hallmarking, but the decision is still pending as the government is deciding as too when to make it mandatory. In rural as well as in urban areas many small jewellers are selling non-hallmarked jewellery, however, BIS has issued warning to unregistered jewellers not to sell hallmark and also not to sell non-hallmarked jewellery.

In any case, if the mandatory hallmarking is delayed from the government side, then the Bureau of Indian Standards (BIS) warning will create awareness.

How to identify Hallmarked Jewellery?

An Identifier can quickly identify the hallmarked (gold and silver) jewellery as it contains four (4) identity remarks on it-

On the jewellery logo of BIS hallmark is present
Purity status number of gold jewellery will be there
Logo of BIS assaying centre
Logo or code of the jeweller

Validity & Renewal of License

The BIS hallmark license is granted for a period of not less than one (1) year and up to two (2) years.

The renewal of a license may be granted for a period of not less than one year and up to five years.

Renewal of license shall contain,

Application of renewal prescribed under Form XII
Month-wise production details
Performance Bank guarantee (six months more than the validity of the grant)
Remittance of the applicable fees.

Recording of Sales of Hallmarked Jewellery

The jeweller shall record every sale on a computerized system, an appropriate record of sale shall be maintained for at least five years and made available as per the demand by BIS.

Hallmark License Fee

New guidelines notified by the government for BIS Hallmark license fees. This license fee will be known as registration fee, and the charges will be based on turnover in place population. Following change in fees is given below-

Turnover up to Rs. 5 cr – Rs. 7500
Turnover between Rs. 5 cr to Rs. 25 cr – Rs. 15000
Turnover between Rs. 25 cr to Rs. 100 cr – Rs. 40000 and
Turnover Above Rs. 100 cr – Rs. 80000

This registration fee is for five years only.