How to Start a ASSAYING AND HALLMARK CENTRE

service package

Overview of Assaying and Hallmarking Centres

The Indian Government has been making significant efforts to ensure the hallmarking of gold and silver jewellery. A hallmark signifies the purity of gold and silver in precious metal articles, such as jewellery. The BIS Hallmark is a certification process that verifies the purity of gold and silver jewellery sold in India. Jewellery is tested and appropriately marked at BIS-approved Assaying and Hallmarking Centres (AHCs) across the country. The BIS defines the procedure for granting permissions, suspending licenses, renewing licenses, and canceling the recognition of Assaying and Hallmarking Centres.

What Are Assaying and Hallmarking Centres?

Assaying and Hallmarking Centres (AHCs) are authorized entities responsible for testing individual jewellery pieces to ensure they meet the required standards. These centres certify the purity of gold (22k, 18k, and 14k) and silver jewellery (6 grades), as well as gold coins and medallions of 24k purity. The hallmark is applied only after the AHC assays the article, confirming its certified purity.

Why Are Assaying and Hallmarking Centres Essential?

These centres ensure that gold and silver jewellery sold by jewellers matches the claimed purity. When jewellers submit their articles for hallmarking, the process is meticulously tracked, from receipt of the jewellery at the AHC to the release of the hallmarked products. This tracking helps maintain transparency and accountability for all parties involved.

Exceptions for Assaying & Hallmarking Centres

Certain articles and jewellers are exempt from hallmarking, including:

  • Articles weighing not more than 2 grams.
  • Articles intended for export that comply with foreign buyers' specific requirements.
  • Jewellers with an annual turnover of less than Rs. 40 lakh.
  • Jewellers using traditional techniques such as Polka, Jadaau, and Kundan are also exempt from hallmarking.
 
 
 

Documents Required for Recognition of Assaying and Hallmarking Centre

The following documents are essential for obtaining the recognition of an Assaying and Hallmarking Centre:

Proof of Establishment

  • Certification of Registration (CoR) issued by the Registrar of Companies, along with the Memorandum of Association (MoA).
  • Registered Partnership Deed, if the applicant is a Partnership Firm.
  • Original certificate from a Chartered Accountant (CA), if the applicant is a Proprietorship Firm.

Address Proof of the Firm

  • Income Tax assessment order.
  • GST Registration Certificate.
  • Sale or Lease Deed Agreement.
  • Registration with the State Government or Trade Licenses.
  • Property tax receipt.
  • Rent Agreement.

Identity Proof of the Applicant

  • Aadhar verification or e-signature.
  • Self-certified copies of one of the following identity proofs: Aadhar Card, Driving License, Voter ID, Passport, PAN Card, or an identity certificate issued by a Gazetted Officer with a photo.

Additional Documentation

  • A map indicating the location of the premises, referencing the nearest prominent landmark.
  • Affidavit and undertaking.
  • Purity manual for the Assaying and Hallmarking Centre, based on the Generic Quality Manual provided by BIS.
 
 

Procedure for Obtaining Assaying and Hallmark Centre Recognition

  1. First, submit the online application form along with the required documents.
  2. After submission, the documents and application will undergo testing by BIS.
  3. BIS officers will review the application and verify the documents.
  4. If everything meets the required standards, the recognition for Assaying and Hallmark Centre will be granted.

Conditions for Rejection of Assaying and Hallmark Centre Recognition Application

The application may be rejected under the following circumstances:

  • If the applicant submits the application after a misuse of Hallmark or a violation under Sections 14 or 15 of the BIS Act, 2016, has been identified.
  • If there is an ongoing prosecution case or an application under Section 29 of the BIS Act.

Note: Firms or applicants falling under these conditions cannot apply for recognition until the issues are resolved. In the case of a conviction under Section 29 of the Act, the application will not be eligible for submission for one year from the date of conviction.

 
 
 

Guidelines for Establishing an On-Site Centre (OSC) by BIS-Recognized Assaying and Hallmark Centre

Here are the key guidelines for setting up an On-Site Centre (OSC) by a BIS-recognized Assaying and Hallmark Centre (AHC):

  1. Location and Number of OSCs:

    • An AHC can set up an OSC in any district, provided that the parent AHC has more than five OSCs attached to it, and the distance between the OSC and the AHC does not exceed 100 km.
    • An AHC that hallmarks an average of 500 articles per day must establish an OSC in an uncovered district.

  2. Functions of OSC:

    • The OSC must perform all functions of the AHC related to hallmarking gold jewelry, except for fire evaluation.
    • The parent AHC is responsible for the fire evaluation of jewelry collected at the OSC.

  3. Application for Approval:

    • Once all arrangements are made, the AHC must apply to the Zonal Office of BIS for approval to operate the OSC, providing all necessary information, including the methodology for forwarding samples from the OSC to the AHC and receiving assay test reports.
    • The application must be submitted in the prescribed format through the BIS portal.

  4. Staffing Requirements:

    • The OSC must employ personnel, including a Quality Manager, as required for the AHC, excluding those involved in fire assay.
    • The parent AHC's manager will oversee the overall quality control at both the OSC and AHC.

  5. Location-Specific Applications:

    • If the OSC is located in a district other than where the AHC is based, the application must be submitted to the Regional Office of BIS with jurisdiction over the AHC.

  6. Equipment Requirements:

    • The OSC must have all the necessary equipment for hallmarking, except for the fire assay equipment, which remains the responsibility of the parent AHC.

  7. Regional Office Responsibilities:

    • Upon receiving the application, the Regional Office of BIS will confirm the performance of the AHC and assess its capacity for fire assay.
    • The office must process the application within three days of receiving the audit report, provided the AHC has taken corrective action where necessary.
    • A BIS audit will be conducted at both the OSC and AHC locations to verify compliance with BIS standards for Assaying and Hallmark Centres.

  8. Suspension and Termination:

    • BIS has the authority to suspend or terminate the operations of an OSC if it is found non-compliant. However, the parent AHC will be given an opportunity to present its case before any action is taken.

  9. Reporting:

    • The AHC must include details about each OSC in its reports or returns to BIS, following the prescribed format.

  10. No Additional Fees for OSCs:

    • There are no renewal fees for OSCs, and their recognition will be automatically renewed when the parent AHC’s recognition is renewed.
    • If the parent AHC is de-recognized or its certification is canceled, all OSCs under its jurisdiction will automatically lose their recognition.

  11. Accountability:

    • The parent AHC is responsible for addressing any violations of norms or conditions at the OSC, as if the violations occurred at the AHC itself.

  12. No Fees for OSC Recognition:

    • There are no application or recognition fees required for setting up an OSC.

These guidelines ensure that On-Site Centres operate efficiently and in compliance with the standards set by BIS while maintaining accountability with the parent Assaying and Hallmark Centre.

Contact CA Anytime to Obtain Recognition for Assaying and Hallmark Centre.

As discussed earlier, obtaining A&H Centre Recognition involves extensive documentation and paperwork, along with field-based expertise.

By choosing CA Anytime, you will benefit from the following advantages:

  • Comprehensive documentation support
  • Assistance with application submission on your behalf
  • Regular follow-ups with BIS
  • End-to-end support throughout the process