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How to set up BIS Assaying and Hallmarking Centre?

calendar15 Jul, 2022
timeReading Time: 4 Minutes
Assaying and Hallmarking

The Bureau of Indian Standards, which is also known as BIS, has the authorisation to operate BIS Assaying and Hallmarking Centres that operate the certifying procedure in India that provides validation of the purity of gold or silver jewellery being sold. The BIS has specific guidelines enacted for the procedure for the grant of the license, terms for the suspension of the approved license, and the renewal of the license that is mandated to be followed by all companies or individuals who intend to sell or commence any trade business in India. All applicable companies or individuals are also required to get their package commodities approved by BIS through their approved BIS Assaying and Hallmarking Centres. The BIS also outlines the recognition and terms of cancellation of the provided recognition for such Centres, which are also known as AHCs.

The Necessity of BIS Assaying and Hallmarking Centres

The essential purpose of the BIS AHCs is for ensuring that the gold or silver products are being sold by the jeweller who claims the amount of cartage of the specific metal of the applicable product is accurate and for assuring the customer that there are no fraudulent activities commencing. The Mark provided by BIS also assists in tracking the manufacturer of the product being sold in case of any complaint is raised in regard to the product.

Eligibility Criteria for BIS Assaying and Hallmarking Centres

The BIS Assaying and Hallmarking Centre have the following specific criteria set as mentioned below that are mandatory to be followed for testing each applicable product –

  • The applicable gold, silver or any other precious metal infused in the commodity needs to weigh above a minimum of two grams.
  • The applicable gold, silver or any other precious metal infused in the commodity cannot be altered as per specific requirements by any foreign buyers that do not comply with the guidelines provided by BIS.
  • The Jewellers applying for the testing of their applicable product need to have a turnover of their company of a minimum of forty lakhs for each financial year.
  • Jewellers that utilise techniques of Polki, Jadaau and Kundan on their products are exempted from applying for hallmarking.

Documents Needed BIS Assaying and Hallmarking Centres

The documents that are mentioned as follows are required for the application process for the grant of recognition of BIS AHCs –

  • Providing proof of the applicable company’s or firm’s establishment by submission of any of the following documents –
  • The Company or Firm Registration Certification, which is issued under the authorisation of the Registrar of Companies along with the copy of the Memorandum of Articles.
  • The Partnership Deed if the applicant company is a Partnership Firm.
  • The Certification of the Chartered Accountant, also known as CA, in case the applicant is a Proprietorship Firm.
  • The Address Proof of the established company’s Premises by submission of any of the following documents –
  • The GST Registration Certification
  • The Registration Certification under the authorisation of the State Government Authority or the Trade License
  • The Income Tax Assessment Order
  • The Receipt of Property Tax
  • The Receipt of the last paid Rent Dues along with the Rental Agreement
  • The Agreement of Lease Deed of Sale Deed
  • Proof of Identification of the Signatory by submission of copies of any of the following documents to be self-attested on the Application –
  • Aadhaar Card
  • Driving License
  • PAN Card
  • Voter Identification Card
  • Passport
  • Identification Certification Photograph issued by the Gazetted Officer on the Official Letterhead
  • Detailed Layout of the premises with the inclusion of nearby landmarks
  • The Quality Manual of the AHC, which is drafted in accordance with the BIS-issued Generic Quality Manuel
  • Affidavit cum Undertaking in accordance with the BIS specified Regulations

Procedure for setting up Recognised BIS AHCs

The following steps mentioned below state the procedure of setting up of an Assaying and Hallmarking Centre that obtains the approval for being Recognised by BIS –

Step 1

The applicant needs to submit the Application Form that is duly filled along with all the documents mentioned above to the authorised personnel of BIS.

Step 2

Upon submission of the necessary documents, they are evaluated. If the evaluation of the submitted documents is deemed successful, a physical inspection of the premises is conducted by BIS.

Step 3

The BIS Auditor drafts a Report of the inspection conducted by BIS and is submitted to the authorised personnel at the appropriate office of BIS.

Step 4

If the Officials of BIS determine the report and the documents along with the application submitted as satisfactory, the grant of BIS Recognition is issued to the applicant Assaying and Hallmarking Centre.

Rejection Terms for BIS AHCs

The following clauses mentioned below are the terms of rejection in case the grant is issued or is to be issued for a BIS Recognised Assaying and Hallmarking Centre –

  • The applicant is accused of misuse of Section 14 and Section 15 of the Bureau of Indian Standards Act, 2016.
  • The applicant has a prosecution case pending or in processing in any trial court under Section 29 of the Bureau of Indian Standards Act, 2016.

The applicant is not deemed eligible in case any of the above clauses are applicable to them. In case the applicant is prosecuted guilty under Section 29 of the Bureau of Indian Standards Act, 2016, the applicant is not eligible for applying for the BIS Recognition for Assaying and Hallmarking Centre until the completion of a year to be counted from the date of conviction.

Validity and Renewal of BIS AHCs

The Validity of the granted BIS Recognition for AHCs is for three years. Toward the end of the validity term, the Assaying and Hallmarking Centre is required to apply for renewal of the grant, where the BIS Officials are to conduct a physical inspection and evaluate the necessary documents.

Conclusion

The BIS has a notification issued specifically stating the guidelines for setting up and operating BIS Recognised Assaying and Hallmarking Centres. The guidelines are to be enacted in accordance with the Bureau of Indian Standards Act, 2016[1]. The Bureau of Indian Standard Rules, 2018, and the Bureau of Indian Standards (Hallmarking) Regulations, 2018. The guidelines clearly state the Requirements and Procedures for Operating, Renewal, and terms of Rejection and Recognition that are to be strictly abided.

Read our Article:Complete Overview of BIS Hallmarking Regulations

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