An Overview of Assaying and Hallmarking Centre
The Government of India has been trying hard to mandate the hallmarking of gold & silver jewellery and a Hallmark indicates the actual gold & silver content in a precious article made of precious metals such as gold or silver that you purchase. BIS Hallmark is a certifying process in India that validates the purity of gold or silver jewellery that is sold. The jewellery is tested & marked properly in BIS approved Assaying and Hallmarking Centres present in various parts of India. The process for granting permission, suspending a license, renewing a license, and cancelling recognition of Assaying and Hallmarking Centres is outlined by BIS.
What do you mean by Assaying and Hallmarking Centres?
Assaying and Hallmarking Centres (AHCs) test pieces of jewellery individually to ensure that proper standards are followed in their making and that the hallmarked products do contain the assured cartage of gold or silver. AHCs will certify the purity of gold jewellery of 14K, 18K, and 22K, 6 grades for silver jewellery, gold coins, and medallions of 24K. Only when Assaying and Hallmarking Centres assays the article and assigns a Hallmark can it be taken to be of certified purity.
Why Assaying and Hallmarking Centres (AHCs) are important?
These centres are to ensure that the gold or silver articles sold by the jeweller are of the claimed caratage. When the jeweller registers & submits their articles for hallmarking online, the time & date is recorded, starting with the receipt of gold or silver article at Assaying and Hallmarking Centres to the dispatch of the hallmarked article. This is aimed to help in tracking the product for all parties involved.
Which Articles of Jewellery cannot be tested at A&H Centres?
There are some exceptions for Assaying and Hallmarking Centres from hallmarking some precious articles:
- Articles weighing less than 2g;
- Any article for export which conforms to any specifications required by the foreign buyers;
- Jewellers with a turnover of less than Rs. 40 lakhs per year;
- Jewellers using Polki, Jadaau, and Kundan techniques are exempt from hallmarking.
Documents Required for the Recognition of Assaying and Hallmarking Centres
Following are some vital documents required for the Recognition of AHCs:
- Establishment proof of the firm or company (any one of the documents given below):
- Certificate of Registration (CoR) issued by Registrar of Companies along with MoA;
- Submit Registered Partnership Deed, in the case of Partnership Firm;
- Original Certificate from a CA (Chartered Accountant) in case the applicant is a Proprietorship Firm.
- Address proof of firm (Any one of the documents given below:
- Income Tax Assessment Order;
- GST Registration Certificate;
- Sale or Lease Deed Agreement;
- Registration with State Government Authority or Trade Licenses;
- Property tax receipt;
- Rent Agreement.
- Identity proof of the applicant:
- Aadhar based verification or e-signature;
- Self-certified copy of Aadhar Card or Driving License or Voter ID or Passport or PAN Card or ID Certificate along with photo issued by Gazetted Officer.
- Map location of premises from the nearest landmark.
- Affidavit cum undertaking.
- Quality manual of the Assaying and Hallmarking Centres prepared on the basis of Generic Quality Manual provided by BIS.
Procedure for Getting Assaying and Hallmarking Centres (AHC) Recognition
- First, You need to file and submit the application form online along with all the documents we mentioned above;
- Once you submit all the documents and applications, then they will go for the inspection by the BIS;
- Then BIS Officials will examine the application and check all the documents;
- If the officials are satisfied with all the documents and applications per the prescribed format, they will grant AHC Recognition.
Condition for the Rejection of AHC Recognition Application
Under the following conditions, the application made by the applicant for obtaining recognition may be rejected:
- The applicant has made the application immediately after the case of misuse of Hallmark or any violation under Section 14 or 15 of BIS Act, 2016 detected on the applicant’s part;
- A prosecution case is pending or in the process of initiating a prosecution case in the trial court against the person or the application under Section 29 of the BIS Act.
Note: The firm or applicants who are falling under any of the conditions mentioned above are not eligible to apply for the Recognition Certificate until they are free from charges. In case of conviction under Section 29 of the Act, such application or firm is not eligible for grant of recognition for one year from the date of such conviction.
Some Guidelines for Setting up On-Site Centre by the BIS recognised AHCs
Following are some important guidelines for setting up On-Site Centre (OSC) by the BIS recognised Assaying and Hallmarking Centres:
- An On-Site Centre can be set up by an AHC in any district subject to the conditions that one A&H Centre cannot have more than 5 On-Site Centre attached to it & the distance of an On-Site Centre cannot be more than 100Km from the parent Assaying and Hallmarking Centre. AHC hallmarking a minimum of 500 articles per day on an average shall be obligated to establish an OSC or AHC in one uncovered district;
- An OSC shall have all the facilities as in an AHC except the facilities required for fire assay & will perform all the AHC functions as set up by BIS for the hallmarking of gold jewellery except fire assay;
- It shall be the liability of the parent AHC to perform the fire assay of the jewellery received at an On-Sire Centre;
- After making all the vital arrangements, Assaying and Hallmarking Centre may apply to the Regional Office of BIS for the permission for off-site workings with complete information as required for an A& H Centre, along with the details of the methodology for dispatch of samples from the On-Site Centre to the parent AHC & the receipt of Assay Test Report and remnants of testing by the OSC therefrom;
- The A&H Centre shall be required to submit the application in the format & through the portal as instructed by the Bureau;
- On-Site Centre shall have testing personnel comprising a Quality Manager, as required for AHC, except the personnel required for the fire assay process. The Manager of the parent AHC shall, however, the overall quality in charge of both On-Site Centre and AHC;
- If an On-Site Centre is proposed in a region other than one in which the Assaying and Hallmarking Centre is located, then the application should be submitted to the Regional Office of Bureau, which has the regional jurisdiction over that AHC;
- On-Site Centre shall have all testing gears as required for AHC except the gears required for the fire assay process;
- The Regional Office of the Bureau must take the following steps after receipt of the application:
- Verify the past performance of the AHC & its preparation in terms of manpower & infrastructure for fire assay.
- Dispose of the application within 3 days of the receipt of the audit report, subject to the applicant having taken vital action as required by the audit report.
- Organise audit at off-site and parent locations for the verification of arrangements as per the criteria set by the BIS for the recognition of Assaying and Hallmarking Centres.
- Bureau has the power to suspend & stop the operations of an On-Site Centre if it's not found to be working in a proper manner. However, the parent AHC shall be given an opportunity of being heard before the recognition of an On-Sire Centre is terminated;
- The AHC shall comprise the OSC-wise details in the report or return to be filed to the Bureau in the format laid down by the Bureau;
- There shall be no renewal fee for On-Site Centre and its recognition shall stand renewed on the renewal of recognition of the parent Assaying and Hallmarking Centre;
- In case of de-recognition or suspension of parent AHC, the permission for all On-Site Centre operations shall also stand withdrawn automatically;
- The parent AHC shall be responsible for corrective action for the violation of norms & criteria for the hallmarking at an OSC as if the said violation had occurred at the parent AHC;
- No application fee/recognition fee will be required to be paid for an On-Site Centre.
Contact Coprbiz for Obtaining Recognition for AHC
It is clear from above that AHC Recognition requires lots of documentation & paperwork and it also requires some amount of field-based knowledge.
At Corpbiz, you will be able to access the following benefits:
- All documentation work
- Help you in filing an application on your behalf
- Regular follow up with BIS
- End-to-end support
Frequently Asked Questions
It’s a system under which a correct determination of official recording of the proportionate content of precious metals in jewellery.
It's a lab where gold jewellery is assessed to check its purity and only licensed labs of BIS can check its purity.
Currently, there are around 950 Hallmarking Centres in India.
Yes, it is compulsory.
The testing of the jewellery and the marking is done in BIS certified Assaying and Hallmarking Centres across the country. Whereas a showroom where jewellery has already been marked by the centre is sold to customers.
Yes, after paying some charges to any BIS certified A&H centres.
The main objective of Hallmarking Scheme is to protect the customer against victimisation due to irregular gold or silver quality and it will be beneficial in developing India as a leading gold market centre in the world.