Risk Alert: The Cost of Delaying Hallmark Registration in India!

If you are a business founder, then surely you know about the cost and price of delaying important things in your business. Mainly, there are many types of certifications and documents that are very important for a business. If a company thinks of skipping or delaying hallmark registration, those important documents and certifications, it will cost them high fines and penalties. Especially in sectors like jewellery, health, and medicine etc. In these industries, the government mandates some important hallmark registration in India in terms of checking that they are working under rules or not.

So, in this blog, you will learn about the cost and consequences of the Delay in hallmarking risks registration in your jewellery business.

As we know that hallmarking provides many benefits and a reputation for a jeweller. So, in that case, if the jeweller delays or skips the hallmark registration, then things become very hard for that jeweller. In terms of its brand image, reputation, and other benefits, it surely lacks these things. The jeweller or business might also pass through from heavy fines, imprisonment, and even loss of its consumers’ trust. So, before entering the market of jewellery market, make sure that you have your hallmark registration in India. 

1. Significant Consequences of Delaying the Hallmark Registration in India

Now, take a short look at the consequences of skipping the hallmark registration in India. 

In countries like India, there are many types of jewellers, whether it is small or big. So, in terms of competing with them, you might require verified proof of your purity and quality, due to customers being attracted towards your business. But in the case of delaying hallmark registration, you might surely lack these benefits for your business. And with some more consequences, such as substantial fines, seizure of goods, and potential imprisonment. 

Therefore, learn about more costs of delaying the hallmark registration in India with the detailed points given below:

1. Financial penalties and legal issues

• In the case of delaying or skipping the hallmark registration in India. Any jewellery has to face fines of up to ₹1 lakh, or five times the amount of the sold unmarked products. Because recently a jeweller got the fine of ₹2 lakh, because of having an expired license and even though their products met purity standards. 
• The authority of BIS also has the right to seize your BIS approval issues jewellery items from the market. For not selling or manufacturing them. 
• In the case of misusing the hallmark registration in India by many jewellers or businesses. The BIS standard score may result in imprisonment for up to one year, a fine, or both.
• Delaying or failing to renew the license after 30 days of expiry. Then, it means that the application is treated as a new registration, incurring the full fees again and a late fee of ₹5,000. 

2. Business and reputational consequences 

• As we know the hallmarking is a symbol of purity and trust for Indian consumers. Thus, manufacturing or operating without caution surely damages your brand reputation and customer confidence. 
• In the Indian market, hallmarking has now become mandatory for every jeweller or business. So, those jewellery which gets registered under it can get a significant competitive advantage. Unregistered businesses cannot legally compete in the market for hallmarked goods.
• Also, those jewellers or businesses that are producing jewellery items without their valid certification. They are operating illegally and risk license suspension and prosecution. 

2. What Causes Jewellers to Delay Registering Hallmarks?

Mainly, the reasons for delaying the hallmark registration in India may vary from jeweller to jeweller. Because some businesses face issues in getting their cost of late hallmarking certification, some think that hallmarking is a burden, etc. So, there is not a single reason for delaying the hallmark registration. 

Many jewellers might delay or skip the hallmark registration. Due to some common reasons, which include financial costs, logistical challenges, time-consuming procedures, limited infrastructure, and a lack of awareness. It is seen that they easily skip or delay their hallmarking, but they also don’t want any type of consequence or issue.

So, learn about the points that describe the reasons for delaying hallmark registration in India, which are given below:

• Financial strain – Due to the cost of initial registration, ongoing testing, and purchasing new, high-precision equipment to meet standards. Due to these reasons, many jewellers start seeing the BIS hallmark license as a financial burden on them, mainly in rural areas. 
• Limited centres – The Assaying and Hallmarking Centres are few in many areas. Due to this, it can lead to many jewellery logistical issues, long wait times, and considerable hold-ups in the certification procedure.
• Complex process – Many jewellers think hallmark registration is time time-consuming process because of the application, inspection, and the current HUID process. Also, the data management and clerical burden of assigning unique codes to each item contributes to delays.
• Awareness Gaps – Mainly, in those areas which are less developed or rural areas. So, in those areas, jewellers lack the knowledge and awareness of the hallmarking regulations and benefits. And fail to comply with hallmarking standards.
• Process Concerns– Many jewellers even have concerns about the process of obtaining hallmark registration in India. Because hallmarking has the potential to be harmful, potentially damaging delicate or handcrafted pieces, it causes a delay for the certification.
• Transition Time – The government provides exemptions for jewellers with annual turnovers below a certain threshold. And also, they provide several deadline extensions to allow the industry more time to adapt to the new mandatory rules and liquidate non-hallmarked stock.

3. Costs of Postponing the Hallmark Registration in Various Nations

Know about the consequences of delaying or skipping the hallmark registration in India and different countries. Because in different countries, there are different costs of skipping or not following the BIS hallmark certificate standards in the jewellery business.

The fines and penalties are compulsory in nations such as the UK and India. And no essential penalties in countries where Hallmarking penalty charges are not mandatory, such as the US. So, learn more deeply about the costs of not adhering to hallmarking standards in different nations:

Why Every Jewellery Business Must Prioritise Hallmark Registration

4. Choose Hallmark by LegalRaasta to Avoid Paying the Charges Associated with Delays!

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• LLP registration
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