How to Obtain BIS Hallmark Certification for Gold Jewelry?

Imagine you are purchasing the gold and didn’t receive the purity composition despite paying a high amount. How will it feel? Therefore, the Indian government established a rule under which securing a license for the gold business is mandatory. The BIS hallmark serves as a certification mark that signifies the purity and superior quality of gold. According to the Consumer Protection Affairs Act of 1986, obtaining the BIS hallmark on gold is mandatory.

In addition, the gold hallmarking scheme was published by the Bureau of Indian Standards in 2000. Whether you are serving as a manufacturer, importer, distributor, or seller, registering for the BIS gold hallmark is vital. But what is the BIS hallmark registration process? Let’s explore how businesses can secure the BIS hallmark for their gold business. 

What is BIS Gold Hallmarking?

Hallmarking is an extensive process that assesses the purity of metals such as gold and silver. The process ensures the gold and silver purity and fineness. Meanwhile, hallmarking for gold and silver is important to guarantee the customers of its safety, quality, and purity. For the gold, the hallmark is tagged as the “Mark of Quality.” On the gold, the mark indicates that it is pure and does not contain other metals. 

Why is Gold Hallmarking Essential in India?

The following points highlight the significance of hallmarking:

• Quality Assurance: In India, the BIS hallmark is utilized for gold. The certified golds, which bear the hallmark, ensure that the metal is pure and fine. It signifies that the amount customers pay, regardless of the quality of the metal composition. 
• Customer Protection: The Bureau of Indian Standards mandates the hallmark for gold to protect the customers from fraudsters and misrepresentation. In the Indian marketplace, it doesn’t allow the entry of lower-purity gold items. 
• Trust and Transparency: The symbol creates the bond of trust between the seller and customer. The seller’s confidence in customers that their products meet the regulatory standards and are also certified by the authority.
• Resale Value: The certified and pure hallmarked gold has more resale value. It guarantees quality, which is favorable to the receiver and the lender. 
• Legal Formality: In India, hallmarking for the precious metal is mandatory. It means those who are operating the gold business in India must adhere to the hallmarking guidelines.
• International Trade: The compliance of Indian gold hallmarks meets the other country’s regulations. It helps to increase international recognition. This makes an easy route for global trade.
• Facilitate loan: The lenders are only preferred to provide the loan to the certified, hallmarked businesses. The lenders know that the hallmark jewelry contains a good amount of purity. 

The Gold Jewelry BIS Hallmark Registration Process

To obtain their hallmark license, the applicant needs to register on the Bureau of Indian Standards online portal. For transparency and traceability, the authority mandates the six-digit HUID on gold. This distinctive identification number must be prominently displayed on gold jewelry. The jewelers who are seeking to secure the hallmark registration license need to follow

Online Registration 

Create an account on the BIS online portal and navigate to the “hallmarking” option. Complete the application form for jeweler registration.

Document Preparation

Collect the essential documents, including the business registration proof certificate, identity proof, premises proof documents, GST registration certificate, and many other documents.

Registration Fee

The jeweler needs to pay the registration and processing fee. The amount can be paid online through the BIS portal.

Inspection

To ensure compliance and the premises process, the inspection may be conducted by a Bureau of Indian Affairs inspector. You must align with BIS standards. 

Hallmark license issue

The hallmark registration certificate will be issued by the Bureau of Indian Standards after the successful verification and premises inspection. 

Which documents are needed for Gold Hallmark Certification?

For the BIS hallmark, the jeweler is required to provide several documents with the application form. Below is an example of the documents necessary for a BIS hallmark license: 

• The registered partnership deed (if applicable)
• Registration Certificate from ROC (If a company)
• The Certificate of CA (if it is a proprietorship firm)
• The Certificate of GST registration
• The Income Tax Assessment Order
• Sale or lease deed agreement
• Most recent property tax receipt
• Registration certificate
• Previous financial year GST return certificate

The Gold Purity Testing: Three Steps

Before issuing the license to the gold jeweler, the products need to pass the three lab testing stages. These stages are:

What is the fee for a hallmark certificate? 

The fee-related details have been outlined by the Indian government in BIS guidelines. Well, the hallmark registration license depends on the turnover. The required fee charges are –

Conclusion | BIS Hallmark License for Jewelry

By navigating the BIS license registration process for gold hallmark, you can protect your business from potential penalties. The registration with the relevant authority offers multiple benefits and also facilitates international trade opportunities. Proper guidance and support can streamline the registration steps. With the assistance of Legal Raasta experts, secure the BIS hallmark license for your gold enterprise.

Frequently Asked Questions

1. Who issued the BIS license for gold?

Ans. In India, the BIS registration certificate for gold is issued by the Bureau of Indian Standards.

2. Can I sell the gold without a hallmark license?

Ans. No, operating the gold jewelry business in India without the BIS hallmark is illegal.

3. Can I get a gold loan without a hallmark? 

Ans. Yes, but it may create several challenges, and the amount might also be lower compared to certified hallmark gold. 

4. What is the difference between the HUID hallmark and the BIS hallmark? 

Ans. The BIS hallmark is the identifier for gold purity, while the HUID hallmark is a six-digit unique identification number for traceability and identification. 

5. Which bank has the highest interest rate for a gold loan?

Ans. HDFC and Axis banks are at the top, where interest rates increase to 17% p.a. onwards.