Hallmarking of Gold Jewellery

Hallmarking

Hallmarking is the accurate determination and official recording of the proportionate content of precious metal in precious metal articles. Hallmarks are thus official marks used in many countries as a guarantee of purity or fineness of precious metal articles. The principle objectives of the Hallmarking Scheme are to protect the public against adulteration and to obligate manufacturers to maintain legal standards of fineness.

In India, at present two precious metals namely gold and silver have been brought under the purview of Hallmarking.

Hallmarking scheme of BIS

Under Hallmarking scheme of Bureau of Indian Standards, Jewellers are registered for selling hallmarked jewellery and recognise testing and hallmarking centres. BIS (Hallmarking) Regulations were implemented w.e.f. 14.06.2018. Hallmarking will enable Consumers i.e. Jewellery buyers to make a right choice and save them from any unnecessary confusion while buying gold.

The Hallmarking of jewellery/artefacts has been required to enhance the credibility of gold Jewellery and Customer satisfaction through third party assurance for the marked purity/fineness of gold, consumer protection. This step will also help to develop India as a leading gold market centre in the World.

The Indian Standard on Gold Hallmarking IS 1417:2016 specifies three grades for hallmarking of gold jewellery/ artefacts which are 14 Carat, 18 Carat and 22 Carat and Indian standard on Silver hallmarking IS 2112: 2014 specifies six grades of silver alloys viz 990,970,925,900,835,800 used in the manufacture of jewellery/artefacts of silver.

Mandatory Hallmarking of Gold Jewellery

First phase

Mandatory Hallmarking of Gold Jewellery has come into force from 16th June, 2021. 

Mandatory hallmarking has initially been started in 256 districts of the country which have Assaying and Hallmarking Centres (AHC). To know the list of districts, click here.

Only 14,18 and 22 carats of gold jewellery are allowed for hallmarking.

Exceptions

The following are exempted from mandatory Hallmarking

• Jewellers with annual turnover upto Rs. 40 lac. 
• Export and re-import of jewellery as per Trade Policy of Government of India
• Jewellery for international exhibitions, jewellery for government approved B2B domestic exhibitions.
• Watches, fountain pens and special types of jewellery viz. Kundan, Polki and Jadau. 
• an article with weight less than two grams.
• an article which is in course of consignment from outside India to an assaying and hallmarking centre in India recognised as per the Bureau of Indian Standards (Hallmarking) Regulations, 2018, for hallmarking.
• any article which is intended to be used for medical, dental, veterinary, scientific or industrial purposes.
• any article of gold thread.
• any manufactured article which is not substantially complete, and which is intended for further manufacture.

Second phase of mandatory hallmarking

The second phase of the mandatory hallmarking will cover additional three caratages of gold jewellery/artefacts viz. 20, 23 and 24 carats as mentioned in the Indian Standard IS 1417 and 32 new districts under the mandatory hallmarking regime wherein an AHC has been setup post implementation of the first phase of the mandatory hallmarking order. To know the list of 32 additional districts, click here.

The second phase of the mandatory hallmarking vide Hallmarking of Gold Jewellery and Gold Artefacts (Amendment) Order, 2022 is in force from June 01, 2022.

Third phase of mandatory hallmarking 

The third phase of the mandatory hallmarking vide Hallmarking of Gold Jewellery and Gold Artefacts (Third Amendment) Order, 2023 comes into force from September 8, 2023.

The third phase of the mandatory hallmarking will cover additional 55 new districts under the mandatory hallmarking system, wherein a hallmarking centre has been setup post implementation of the second phase of the mandatory hallmarking order thereby making the total number of districts covered under mandatory hallmarking as 343. To know the list of newly added 55 districts, click here.

Registration of jewellers

Any manufacturer, importer, wholesaler, distributor or retailer engaged in selling precious metal articles has to mandatorily get registered with BIS. However, artisans or manufacturers who are manufacturing the gold jewellery on job work basis for the jewellers and are not directly related to sale to anyone in the chain are exempted for registration.

Online registration of jewellers

Registration of jewellers will be one-time and is available online. No fee is being charged from jewellers for grant of certificate or registration.

• The jeweller first needs to visit National Single Window System website - https://www.nsws.gov.in/
• To create Account, Click here.
• Fill the Registration form by entering the requisite details. User ID is generated and sent to the jeweller to his/her registered contact number.
• Login using the credentials received via message to the registered contact number and fill the Online Application Form.
• Submit the form and the registration is granted instantly.

To view the guide for registration, click here

Hallmarking of jewelry

The registered jeweler submits the jewellery for hallmarking to BIS recognized Assaying & Hallmarking (A&H) centre. A&H centres are the testing centres where the jewellery is tested. After testing, the A&H centre applies hallmark on the jewellery which is found meeting the requirement of the standard.

The list of steps to be followed by the jeweller to send jewellery to Assaying & Hallmarking Centre through the portal are as follows:

• Login with Username and Password at https://www.manakonline.in/MANAK/eBISLogin
• Click on ‘New Request tab’ to generate new request
• Select the AHC and fill the requisite details like Item Category, Quantity, Item Category Weight, and Declared purity in the ‘Jeweller’s Hallmarking Request’ page.
• Click on ‘Submit to AHC’

Hallmarking charges for the jewellery are – Rs. 45/- +GST per piece for gold jewellery and Rs. 35/- +GST per piece for silver jewellery irrespective of the weight of the jewellery. Minimum fee for a gold consignment is Rs. 200 and for silver it is  Rs 150/-.

Hallmark shall be done at the first point of sale which may be manufacturer, whole-seller, distributor or retailer. Alteration in the Hallmarked jewellery up to 2 grams of increase or decrease to be allowed with responsibility of purity on the jeweller.

Old unhallmarked jewellery available in households can be sold to jewellers. Jewellers can continue to buy back old gold jewellery without hallmark from consumer. Old jewellery can be got hallmarked as it is, if feasible by the jeweller or after melting and making new jewellery. 

Consumer Protection

Consumer should buy Hallmarked Jewellery from BIS registered jewellers and the following points should be taken care off:

• Please check the BIS certificate of registration displayed in the shop.
• Check Hallmark, consisting of four marks, on the article with the help of a magnifying glass of 10 X magnification available in the shop.
• Do not pay Hallmarking cost more than Rs. 45 +GST per piece for gold jewellery and Rs. 35 +GST per piece for silver jewellery.
• Do not forget to take the bill which should mention hallmarking cost, net weight of precious metal, purity in carat and fineness on the bill.

BIS follows a well-established complaint redressal procedure. Complaints are recorded centrally at Complaints Management and Enforcement Department (CMED). Complaints can be made both offline and online.

• Online complaint can be made through mobile app BIS CARE or by use of Consumer Engagement Portal at BIS
• By contacting/writing to Public Grievance officer of the nearest Regional/ Branch office of BIS
• By email at complaints@bis.gov.in
• Consumers can get their hallmarked jewellery tested from any of the BIS Recognized A&H Centre on chargeable basis and can lodge a complaint with BIS in case of shortage in purity is observed. BIS ensures its redressal by the registered jeweller. In case of shortage of purity, consumer is entitled to get the compensation calculated on two times the shortage in purity for the weight of the article sold. 

Source :Bureau of Indian Standards