MANDATORY HALLMARKING OF GOLD JEWELLERY, HOW TO APPLY FOR HALLMARK LICENSE, HALLMARK REGISTRATION ONLINE

Q1. From when Hallmarking is mandatory ?

Ans. As per Order No. 1949 dated 1st June 2021, Hallmarking of Gold Jewellery and Gold Artefacts is mandatory from 16th June 2021. 

Currently, Hallmarking is mandatory for only 14 Carat (14CT), 18 Carat (18CT) & 22 Carat (22CT) Gold & Gold artefacts.

[IS 1417:2016 is being amended to include 20, 23 and 24 carats of gold jewellery/artefacts in its scope. After the issue of amendment to IS 1417: 2016, the date of implementation of hallmarking on the above mentioned grades of jewellery will be notified to all the concerned stakeholders.]

Note : As per QCO (Quality Control Order) dated 23rd June 2021, Hallmarking is mandatory only in 256 Specified Districts mentioned in Mandatory Hallmarking Order (effective from 16th June 2021).

Q2. Who needs Registration from BIS?

(i)  Any manufacturer, wholesaler, distributor or retailer engaged in selling precious metal articles has to mandatorily get registered with BIS.

(ii)  The registration is thus required for:

a) Manufacturer, involved in selling hallmarked gold jewellery to wholesaler, distributor, retailer or to the end customer

b) Wholesaler, involved in selling hallmarked gold jewellery to distributor, retailer or to the end customer

c) Distributor, involved in selling hallmarked gold jewellery to wholesaler, retailer or to the end customer

d) Retailer, involved in selling hallmarked gold jewellery to the end customer

iii. It is also informed that artisans or manufacturers who are manufacturing the gold jewellery on job work basis for the Jewellers and are not directly related to sale to any of the persons in the chain such as Manufacturer, Wholesaler, Distributor and Retailer, may be exempted from registration. However, they must have supporting documents in claim to their status.

iv. Jewellers with annual turnover up to Rs 40 lakh do not fall within the purview of mandatory hallmarking. They may however get registration if they wish to sell hallmarked jewellery.

Q3. Who needs to get the jewellery Hallmarked?

Ans. In the chain of Manufacturer, Wholesaler, Distributor and Retailer, the responsibility to get the article Hallmarked is on the one who makes the first point of sale. Thus hallmarking has to be done only once in the entire chain and it has to be done by the one who has made the first sale which may be Manufacturer or Wholesaler or Distributor or Retailer.

Q4. What are the exemptions under the QCO for mandatory hallmarking?

The exemptions under mandatory hallmarking order are as follows:-

(a) any article meant for export, which conforms to any specification required by the foreign buyer;

(b) an article with weight less than two grams (2 gm);

(c) an article which is in course of consignment from outside India to an assaying and hallmarking centre in India recognised as per the Bureau of Indian Standards (Hallmarking) Regulations, 2018, for hallmarking;

(d) any article which is intended to be used for medical, dental, veterinary, scientific or industrial
purposes

(e) any article of gold thread;

(f) any manufactured article which is not substantially complete, and which is intended for further manufacture;

(g) gold bullion in any shape of bar, plate, sheet, foil, rod, wire, strip, tube or coin.

(h) Export and re-import of jewellery as per Trade policy of Government of India.

(i) Jewellery for International Exhibitions.

(j) Jewellery for domestic Business-to -Business exhibitions, approved by Government. agency

(k) Special categories of jewellery -Kundan, Polki and Jadaau.

(l) Jewellers with the annual turnover of upto Rs.40 lakh per annum

(m) Gold watch and fountain pen.

Q5.  How to access the Hallmarking Portal for Registration of jewellers?

(i) The jeweller first needs to visit e-BIS website i.e. www.manakonline.in and select the ‘Hallmarking’ tile.

(ii) Click on Login.

(iii) Click on ‘Create Account’.

(iv) Fill the Registration form by entering the requisite details

(v) User ID is generated and sent to the jeweller to his/her registered contact number.

(vi) Login using the credentials received via message to the registered contact number and fill the Online Application Form.

(vii) Submit the form and the registration is granted instantly.

Q6. What are the provision of penalty for misuse of hallmark as per BIS Act, 2016?

Ans. As per section 29 of BIS Act, 2016, any person who contravenes the provisions of sub-sections (6) or (8) of section 14 or section 15 shall be punishable with imprisonment for a term which may extend to one year or fine which shall not be less than one lakh rupees, but may extend up to five times the value of goods or articles produced or sold or offered to be sold or affixed or applied with a Standard Mark including Hallmark, or with both.

Q7. What are the provision of compensation to the consumer for any shortfall in purity of hallmarked articles?

Ans. As per section 49 of BIS Rules, 2018, in case of precious metal article not conforming to the relevant standards, such compensation to the buyer/customer shall be two times the amount of difference calculated on the basis of shortage of purity for the weight of such article sold and the testing charges.

Q8. Is the mandatory hallmarking order applicable to gold bullion and coins also?

Ans. No, the order is applicable for gold jewellery and artefacts only. Gold bullion/coins of 999/995 fineness are permitted to be hallmarked by BIS approved Refinery/Mints (39 licensed refineries are in operation at present as on 01 Jan 2021).The list of BIS licensed Refineries/Mints is available at BIS website www.bis.gov.in under the hallmarking tab.

Q9. What is the fee for the registration of jewellers?

Ans. No fee is being charged from jewellers for grant of certificate or registration.

Q10. Is renewal of jeweller’s registration needed?

Ans. Renewal of jeweller’s registration is not needed as the certificate of registration is being granted as one-time registration that has a validity for lifetime

Q11. Can a jeweller with annual turnover of less than Rs. 40 lakh sell hallmarked jewellery in the districts under mandatory hallmarking?

Ans. Yes, as per exemptions mentioned in the mandatory hallmarking order a jeweller with annual turnover of less than Rs. 40 lakh may sell hallmarked jewellery in the districts under mandatory hallmarking, provided he has a certificate of registration from BIS.

Q12. Can jewellers in the districts not under mandatory hallmarking sell the hallmarked jewellery?

Ans. Yes, jewellers in the districts not under mandatory hallmarking can sell the hallmarked jewellery, provided they have a certificate of registration from BIS.

Q13. Will the exemptions in the QCO (Quality Control Order) be applicable even to the districts not covered under mandatory hallmarking?

Ans. The QCO shall apply only to 256 Districts mentioned in the Mandatory Hallmarking Order.

Q14. Can a manufacturer or jeweller or both of them put his/their mark on hallmarked jewellery?

Ans. Following marks on the hallmarked Jewellery are mandatory:

1. BIS Standard Mark ( BIS Logo)

2. Purity in carat and fineness

3. Six digit UID number

Beside these, the manufacturer or jeweller may put his/their mark on hallmarked Jewellery/artefacts.

Q15. Can people sell their old jewellery to jewelers after Hallmarking becomes mandatory?

Ans. Yes, Consumer can sell old un-hallmarked jewellery lying with them to jeweller . The jeweller may melt the jewellery and make new jewellery and get it hallmarked before reselling it.

Q16. Is it necessary to re-hallmark a hallmarked imported jewellery?

Ans. Yes; it is necessary to re-hallmark a hallmarked imported jewellery.

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