Hallmark Registration Online in India

Hallmark Registration is the process by which a jeweler gets officially certified by the Bureau of Indian Standards (BIS) to sell hallmarked gold and silver jewellery. This registration allows the jeweler to use the BIS hallmark, a mark that confirms the purity of the metal used in the product.

BIS launched the Gold Hallmarking Scheme in 2000 and the Silver Hallmarking Scheme in 2005 to bring transparency and quality assurance to the jewellery industry. The government has made it mandatory for all gold jewelry and artifacts to have a 6-digit alphanumeric Hallmark Unique Identification Number (HUID) effective April 1, 2023.

Hallmarking is the accurate testing and certification of the precious metal content in an item. It serves as a guarantee that the jewellery meets the strict purity standards set by BIS.

Importance of Hallmarking for Gold & Silver in India

Previously, the jewelry sector faced significant challenges. A lack of standardization led to unclear purity, damaging consumer trust, and enabling unethical practices. Non-hallmarked jewelry also had lower resale value because its purity was uncertain.

The mandatory introduction of hallmarking has significantly transformed the Indian jewelry sector by:

• Build Consumer Trust: The primary advantage is the immense confidence it creates in buyers. When purchasing gold and silver jewellery, customers are protected from the risk of acquiring items with lower purity than claimed, ensuring they receive the true value for their investment.
• Promote Ethical Business: Hallmarking standardizes purity, fosters fair trade practices, and eliminates ambiguity in transactions. This creates a level playing field for all jewelers.
• Boost Brand Reputation: For a jeweler, a BIS hallmark license is a powerful marketing tool. It instantly elevates their status as a trustworthy and reputable vendor.
• Ensures Higher Resale Value: Hallmarked jewelry commands a higher resale value, as it guarantees purity and simplifies future transactions.

What are the different marks of a BIS Hallmark?

The BIS (Hallmarking) Regulations, 2018, which came into force on July 1, 2021, were introduced to enhance consumer protection and ensure the purity and authenticity of gold jewellery across India.

Current Mandatory Hallmark

Under the new rules, all hallmarked gold jewellery must have three essential marks:

• BIS Logo: It is a distinctive triangular symbol that instantly identifies the item as having been certified by the Bureau of Indian Standards, the national standards body of India. Its presence confirms that the item conforms to the standards set by BIS.
• Purity Grade and Fineness: This component details the quality of the gold in the jewellery. It is expressed in two ways:
  • Karats (KT): For example, 22KT, 18KT, or 14KT.
  • Fineness Number: This represents the purity in parts per thousand. For example, 22K gold is marked as 916 (meaning it is 91.6% pure gold), 18K is 750 (indicating 75% purity), and 14K is 585 (indicating 58.5% purity).
• Hallmark Unique Identification (HUID): This is a 6-digit alphanumeric code unique to each piece of jewellery (e.g., A1B2C3). The HUID allows for digital tracking of the item, including the details of the jeweller who sold it and the Assaying & Hallmarking Centre that certified it.

Obsolete Marks (From the Old System)

The following marks were part of the older hallmarking system and are no longer used on new jewellery:

• Assaying & Hallmarking Centre's Mark: This was the logo of the specific BIS-approved testing laboratory, which was stamped onto the item. This information is now digitized and accessible through the HUID.
• Jeweller's Mark: This was a unique logo identifying the BIS-certified jeweller or manufacturer. This is also now tracked digitally via the HUID.
• Marking Year: This was a letter code that represented the year of hallmarking (e.g., 'A' for 2000). This has also been made redundant by the HUID system.

Different Types of Forms for Hallmark Registration

The hallmark registration form is now an integrated part of the online application on the BIS's Manak Online portal. The portal intelligently adapts the application flow based on the user's category, primarily differentiating between:

Acquiring a hallmark licensing offers a multitude of strategic benefits for any jewelry business.

• Legal Obligation: In designated districts across India, it is illegal for jewelers to sell gold jewelry without a hallmark, as mandated by the Ministry of Consumer Affairs, Food & Public Distribution in 2021, making hallmark registration a necessary legal requirement.
• Enhanced Market Position: A BIS hallmark license immediately sets a jeweler apart from the unorganized sector, giving them a significant competitive advantage.
• Attracting Informed Customers: Today's consumers are well-informed and actively seek out hallmarked jewelry. Registration directly taps into this growing market segment.
• Facilitating Business Growth: The trust and credibility that come with hallmarking can lead to increased customer loyalty, a broader client base, and sustainable business expansion.
• Ensure Higher Resale Value: Hallmarked jewelry guarantees purity, meaning your customers get a better price if they exchange or sell it later.
• Reduced risk of penalty: Selling non-hallmarked jewelry where it's mandatory can lead to large fines, imprisonment, and seizure of non-compliant stock under the BIS Act, 2016, posing a substantial risk to your business continuity.

To be eligible for BIS certification, jewelers involved in the manufacturing, wholesale, distribution, or retail of gold or silver jewelry in India must meet the following requirements:

1. Business Requirements:

• • Be Officially Registered: The business must possess an active statutory registration (e.g., GST Certificate).
  • Have a Physical Office: Your business needs a registered office address located in India.

2. Compliance:

• • Adherence to BIS Standards: Applicants must formally commit to following all BIS quality standards and hallmarking regulations.

3. Required Documentation:

• • Proof of Business Constitution:
    • For Partnerships: Partnership Deed.
    • For Companies: Certificate of Incorporation from the Registrar of Companies (ROC).
    • For Proprietorships: Certificate from a Chartered Accountant (CA).
  • Proof of Business Address: Any one of the following: GST Registration Certificate, Rent Agreement, Sale/Lease Deed, or a recent Property Tax Bill.
  • Proof of Turnover:
    • For existing businesses: GST returns from the previous financial year.
    • For new businesses: A formal letter projecting the estimated future turnover.
  • Identity Proof of Applicant: A copy of a PAN Card, Aadhaar Card, Passport, or Driver's License for the authorized signatory.
  • Workshop Details: A detailed description of the manufacturing workshop and its facilities.

4. Final Verification:

• • Site Audit: The application process concludes with a mandatory audit of the manufacturing premises by a BIS inspector to verify production capabilities and quality control systems.

Who is Not Required to Obtain Hallmark Registration?

Jewelers with an annual business turnover of less than ₹40 lakhs are currently exempt from the mandatory hallmark registration requirement.

Recommendation: Even exempt jewelers are encouraged to voluntarily seek hallmark registration to:

• Build customer trust
• Stay competitive in the market.
• Prepare for future business growth.

Categories Not Required to Obtain Hallmark Registration

The following items are exempt from hallmark registration requirements:

• Export and Re-import: Jewelry meant for export and re-import is not required to have a hallmark.
• Exhibition Jewelry: Jewelry displayed in exhibitions is exempt from hallmarking.
• Specialized Jewelry: Items designed for specific, non-commercial purposes may not require hallmarking.
• Small Articles: Smaller jewelry items may be excluded from hallmarking requirements.
• Consignment for Hallmarking: Jewelry sent to a hallmarking center for certification is not subject to hallmarking registration.
• Industrial and Medical Items: Jewelry used in industrial and medical applications is exempt.
• Gold Thread: Gold thread is exempt from hallmarking when used for non-jewelry purposes, such as in the textile industry for embroidery, in crafts for decorative artwork, or medical devices like sutures.

To complete the BIS hallmark registration online, applicants need to prepare digital copies of the following hallmark registration documents:

a. Proof of a Company/Firm Establishment

1. Registered partnership deed
2. Registration certificate issued by ROC and MOA (Memorandum of Association)
3. CA certificate (if the application is a proprietorship firm).

b. Address Proof of the Company or Firm

1. GST registration certificate
2. Income tax assessment order
3. The sale or lease deed agreement
4. Rent agreement with previous rent receipts
5. Latest receipt of property tax
6. Any registration certificate issued by a state government (eg, Certificate for Shop and Establishment Act Registration, Trade License, etc.)

c. Proof of Annual Turnover

1. Copy of GST returns of the previous financial year
2. In case the firm is new, an undertaking should be collected from the firm with an estimate of expected turnover and assurance to submit GSTR.

d. ID Proof of the Signatory

1. Aadhaar-based verification or e-signature
2. Copy of PAN card, Aadhaar card, passport, driving license, or photo ID card issued by a Gazette Officer on an official letterhead.

The hallmark license process is now entirely digital via the BIS portal, designed for maximum efficiency.

Step 1: Create a Portal Account

• Go to the BIS Manak Online portal (manakonline.in).
• Register as a new user by providing a valid mobile number and email ID, which will be verified through OTP.

Step 2: Initiate the Application

• Log in and find the 'Hallmarking' section on the dashboard.
• Select the application for 'Jeweller Registration' and proceed to fill in the digital form with your business information.
• Fill out the required details, including business information such as business type, GST number, and operational details.

Step 3: Upload Supporting Documents

• Upload clear, scanned copies of all the required documents as per the checklist.
• Documents must meet the following requirements: size not exceeding 2 MB and in PDF, JPG, JPEG, or PNG format.

Step 4: Pay the Registration Fee

• The portal will auto-calculate the required hallmark registration fees based on your business turnover. (Check the table given in the next section.)
• Complete the payment securely through the online gateway.
• You will receive a payment receipt once the transaction is successful, which can be downloaded for your records.

Step 5: Official Scrutiny

• A designated BIS officer will review and verify your application and the submitted documents.
• If any additional information or clarification is needed, the officer will communicate with you through the portal.

Step 6: Receive the License

• Once everything is found to be in order, the BIS hallmark license is digitally granted and made available in your portal account.
• The certificate will be available for download from your portal account.

The total initial cost is a combination of a one-time application fee and an annual registration fee, which varies based on the turnover of your business in the preceding financial year. These fees are exclusive of GST, which is charged separately.

In addition to the registration fee, jewelers pay a nominal fee to the Assaying and Hallmarking Centre (AHC) for testing and marking each item.

The process for maintaining your hallmark license is designed to ensure continuous compliance without the hassle of frequent re-application.

Lifetime Validity of Certificate

A significant advantage of the BIS hallmarking scheme is that the Certificate of Registration granted to a jeweler is valid for a lifetime. This eliminates the need to go through the entire application and verification process periodically.

Annual Renewal Fee Payment for Hallmark

While the certificate itself is valid for a lifetime, the license to operate under it must be kept active by paying an annual renewal fee.

• Fee Amount: The annual renewal fee is the same as the initial registration fee and is determined by your turnover slab from the previous financial year (as mentioned earlier).
• Payment Process: The renewal fee must be paid on time each year directly through the BIS Manak Online portal.

Holding a BIS gold hallmark license requires adherence to a set of compliance standards. A BIS hallmark license list of registered jewelers is publicly available, and these jewelers must:

• Maintain all detailed records related to hallmarked inventory.
• Ensure every sales invoice details the hallmarking charges and the specifics of the jewelry sold.
• Display the BIS certificate and provide a magnifying glass for customers.
• Source hallmarking services exclusively from BIS-recognized A&HCs.

Strict Penalties for Non-Compliance with the BIS Act

The BIS Act, 2016, outlines severe penalties for selling non-hallmarked jewelry where it is mandatory, as well as for any misuse of the BIS Hallmark.

• Monetary Fines:
  • Any person who violates the hallmarking provisions is punishable with a fine that is not less than Rs. 1 lakh.
  • This fine can be extended up to five times the value of the goods or articles that are in violation. This means that if a significant stock of non-hallmarked jewelry is seized, the penalty can be substantial.
• Combined Penalty:
  • The court has the discretion to impose both imprisonment and a fine on the offender.
• Seizure and Forfeiture:
  • BIS officials have the authority to conduct search and seizure operations at jewelers' premises and can seize all non-compliant inventory.
• Imprisonment:
  • Offenders can face imprisonment for a term that may extend up to one year.

The Hallmark License/Certificate is an official document that proves precious metals like gold and silver meet the quality standards set by the Bureau of Indian Standards (BIS). It ensures the purity and authenticity of the metal, giving consumers confidence in their purchases.

The first Hallmarking Certification was granted in 2000 for gold jewelry.

Types of BIS Hallmarking Registration Certificate Schemes

BIS issues different types of registration certificates depending on the role of the applicant in the hallmarking process. Such as:

• Jeweller's Certificate of Registration: This is the primary certificate issued to jewelers for their sales outlets, authorizing them to sell hallmarked jewelry. A jeweler with multiple outlets must obtain registration for each location.
• Recognition of Assaying & Hallmarking Centre: This is a special recognition given to centres authorized to test the purity of gold, silver, and other precious metals, and to apply the official BIS hallmark on jewellery.

Other BIS Scheme

Besides hallmarking for jewelry, the Bureau of Indian Standards (BIS) offers several other key certification schemes:

• ISI Mark Scheme: A quality mark for various products made in India, mandatory for some and voluntary for others, to ensure they meet Indian standards.
• Compulsory Registration Scheme (CRS): A mandatory scheme for electronics and IT products, requiring them to be tested for safety and quality before being sold in India.
• Foreign Manufacturers Certification Scheme (FMCS): Allows overseas manufacturers to use the ISI mark on their products, certifying that they comply with Indian standards for sale in the Indian market.
• Eco Mark Scheme: A voluntary certification for environmentally friendly products, indicated by an earthen pot logo, to promote sustainability.

How to Download the BIS Hallmark License/Certificate?

Follow these steps to download the digital BIS Hallmark License/Certificate from the Manak Online portal:

1. Log in to Your Account: Go to the Manak Online portal and log in using your credentials (username and password).
2. Access the Dashboard: Once logged in, go to your account dashboard.
3. Locate the Certificate Section: Look for the section that provides your license or certificate details.
4. Download the Certificate: After your registration is approved, the digital hallmark license certificate will be available. Click on the option to download the certificate.
5. Save the Certificate: Once downloaded, save the certificate to your computer or device for future reference.

By following these steps, you can easily access and download your BIS Hallmark License certificate.