BIS Hallmarking: A Guide to Gold and Silver Purity in India

Introduction

Gold has captivated Indians for centuries and continues to be a popular investment option, especially during uncertain times. To protect consumers from adulteration and ensure that jewellers adhere to legal purity standards, the Bureau of Indian Standards (BIS) introduced a Jewellers Registration Scheme. The BIS introduced the gold hallmarking scheme in 2000, followed by the silver hallmarking scheme in 2005. Under this scheme, obtaining a BIS hallmark license is mandatory for the manufacturing and sale of gold and silver jewellery. Over the past three years, the number of registered jewellers has grown by approximately 18 percent annually, while the number of Assaying & Hallmarking (A&H) Centers has risen by about 25 percent per year.

The purity of gold cannot be judged solely by its appearance or texture. Two gold ornaments with identical designs can differ significantly in purity. BIS Hallmark Registration helps mitigate this issue by providing essential information to verify gold's purity.

Parts of a BIS Hallmark

Previously, BIS Hallmarks for gold items included five components, known as the old method of hallmarking. The presence of these stamps ensures that the gold meets BIS purity standards.

• BIS Standard Mark: This triangular logo signifies that the item has been tested by a third-party or independent assessor to verify the metal's purity. Most often, this is done by BIS-approved laboratories or Hallmarking centres.

• Purity Grade: The purity of gold is measured in karats (KT) or fineness numbers. The purest gold, 24 KT, is too soft for jewellery, so other metals like silver or zinc are mixed to create durable pieces. For example, 22k gold jewellery has a purity grade of 916, meaning it contains 91.6% pure gold. Similarly, 18k and 14k gold have purity grades of 750 and 585, respectively.

• Hallmarking Centre’s Mark: This stamp indicates the BIS-licensed hallmarking center or third-party evaluator that tested the product, ensuring traceability in case of any discrepancies.

• Year of Marking: This indicates the year the item was hallmarked, represented by a specific letter code assigned by BIS.For example, "A" stands for 2000, "B" stands for 2001, and so forth.

• Jeweller’s Mark: Each BIS-accredited jeweller has a unique logo stamped on their products. This mark is visible on the jewellery to confirm its purity.

Types of BIS Hallmark Certificates

BIS Registration for Hallmarking Showroom/Jewellers: To sell BIS Hallmarked jewellery, jewellers must obtain registration for each of their sales outlets. This registration is granted after submitting the required documents, payment, and an agreement to operate under the specified terms. If a jeweller wants to sell hallmarked silver jewellery, they must apply separately.

After receiving the license, jewellers must follow the conditions specified in the agreement. Deviations in the purity of gold or silver may result in the revocation of the hallmark license, and BIS may take penalty action. BIS periodically visits jewellers’ stores to test a sample of their hallmarked goods.

How to Obtain BIS Hallmarking Registration for Showrooms in India

The process for obtaining BIS hallmark registration for a showroom is as follows:

Documents Required for BIS Hallmarking Registration

• Premises Document (Sale Deed/Rent Agreement)

• Showroom Establishment Certificate (Business License)

• GST Certificate

• Proof of Turnover

• Owner’s Identity Proof (e.g., Aadhaar Card)

• Showroom Logo

• Letterhead (with registered email ID and contact number)

• Map showing showroom location

• 2-3 photographs of the showroom (inside and outside)

BIS Recognition of Assaying & Hallmarking Centres

To sell ready-made hallmarked jewellery, jewellers must have their gold and silver pieces tested at a BIS-recognized hallmarking centre. These centres, which are licensed by BIS, test and mark the jewellery to ensure it meets purity standards. Hallmarking centres are typically located in commercial areas, close to jewellery hubs, for easy access to assaying and hallmarking services.

Assaying refers to the process of determining the amount of precious metals in a product. The process of assaying and hallmarking typically follows these steps:

• Reception: Jewellery pieces are received and sorted based on the purity claimed by the supplier before being sent for testing.

• X-ray Fluorescence (XRF): The purity of the jewellery is tested using an XRF machine to verify its fineness.

• Melting: Samples are melted in a furnace to homogenize the metal.

• Sample Preparation: The melted sample is mixed with silver and copper, then encased in lead foil for further analysis.

• Assaying (Fire Assay Test): Fire assaying is the most reliable method for determining the purity of gold and silver. The process uses high temperatures to remove base metals and determine the purity of the noble metals. The sample is heated in a furnace to separate the base metals from gold and silver.

By following this rigorous process, BIS ensures that all hallmarked jewellery meets the highest standards of purity, providing consumers with confidence in their purchases.

Documents Required for BIS Recognition of Assaying & Hallmarking Centre

1. Premises documents (Registry or Rent Deed)

2. ID proof of Director/Partner

3. Copy of GST registration

4. MSME certificate (if applicable)

5. Latest electricity bill

6. Logo of the hallmarking centre

7. NOC from the Pollution Department

8. MOA (Memorandum of Association) or Partnership Deed

9. Details of eight employees with qualification certificates and ID proof

10. BIS hallmark centre application form in the prescribed format

Hallmark License Fees

As per the Hallmarking Regulations, 2018, hallmarking registration fees must be paid to BIS by the 10th of the following month. Failure to comply may lead to appropriate actions being taken as per the regulations.

For any questions regarding the most recent update, please reach out to us via email at cs@absoluteveritas.com