Why BIS Hallmark Registration is Crucial for Your Jewelry Business?

For Indian citizens, gold serves as a deep-rooted cultural symbol. Meanwhile, the symbol focuses on its significance and tradition. In addition, gold, which is widely used for jewelry, is associated with affluence and social rank. On the other hand, the production of gold is also taking a new step with the vast increase in customers’ interest.

Well, with the massive production of gold and silver, India ranked in ninth place. While the production and distribution of gold jewelry are increasing employment and further enhancing marketability. However, for the new representative, acquiring the BIS hallmark gold registration certificate is necessary. Let’s explore BIS acts in India and why it is important for jewelry businesses. 

What are the Major Benefits of BIS Hallmark Jewelry?

In India, the regulation of quality and composition standards is monitored by the governing body, the Bureau of Indian Standards. The BIS acts in India as an assurance certificate that ensures quality and authenticity. Meanwhile, steady growth and market expansion have been recognized with the valid certification of BIS. Elaboration of BIS hallmark benefits: 

Boosts customers’ confidence: The valid BIS hallmark certificate is a symbol of quality. Due to the immense cultural gold holds impactful significance in Indian worship. The BIS certification involves quality assurance, focusing on the gold jewelry’s purity and authenticity. It enhances the understanding of customers who come to know that the products follow the regulatory requirements. 

Management of brand image: The consistent management of hallmark certificates under the BIS certification schemes uplifts the image of the business in the market. The certification is the way to enhance marketability by providing higher-quality elements of gold. 

Legal protection: To monitor or operate the gold jewelry business in India, the manufacturers are required to comply with administrative compliances. Overall, registration for BIS is a compulsory requirement for importing and selling jewelry.

Competitive benefits and transparency: The customers who are committed to the gold and silver jewelry quality and purity admire those who are certified BIS hallmarking businesses. The customers value the guidelines of authority, which depict the product’s presentation. Meanwhile, the BIS serves as a transparent authority in India to verify the gold composition in jewelry sold in the markets.

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Why BIS Hallmarking Gold System is Important Procedure?

To ensure the nature and composition of the gold, the experts adopt the BIS hallmarking procedure. The steps of gold hallmarking are as similar to the  silver jewelry system. In 2000, the Indian administration introduced the BIS certification schemes, including the rules and regulations to certify that the elements of the jewelry possess premium and significant gold. In addition, the Organized Standards of India regulate the rules and regulations of BIS. In 2005, the regulations were implemented for silver.

With the involvement of BIS hallmark certification, it acts as a third party for the gold jewelry quality and percentage assurance. The hallmarking systems are a comprehensive way to protect customers from fraudsters.

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What are the BIS-Developed Standards for Gold Jewelry?  

The standards of gold jewelry depict the fundamental features, including the quality and purity. The jewelry possesses the standardized marking that ensures that the product consists of a manageable percentage of gold. The BIS system standards further include the brand logo, quality, and the percentage (e.g, 22k or 18k). The government of India introduced a new guideline that went into force on April 11, 2023, to make the gold jewelry market more transparent. Under this new regulation, all gold jewelry operators who regulate the activities of manufacturing, distribution, selling, or importation are required to obtain a 6-digit Hallmark Unique Identification (HUID). Here are the BIS series:

• IS 15820: 2009—The Indian Standard Bureau published IS 15820: 2009, emphasizing the standard compliance for the ability of scanning and quality control facilities.
• IS 3095—For the manufacturing of jewelry, the operators can only use the metallic alloys that contain gold in extensive quantities. For the gold solder, the series mentioned the depth specifications
• IS 2790—This standard sheds light on the composition and the quality of gold. As per the BIS guidelines mentioned in IS 2790, the manufacturers can only import or sell 14, 18, and 22 carat gold alloys. 
• IS 1418—The standard address about the laboratory investigation of gold in gold bullion, alloys, and jewelry. To investigate the percentage, the examination method ensures the accuracy and consistency. 
• IS 1417:2016—The Bureau of Indian Standards (BIS) made this standard public, which addresses the gold and gold alloys that must be used in jewelry and artifacts. The series ensures the overall appearance and the marking requirements of the gold jewelry. Further focuses on the gold elements’ purity and quality. 

The history of Hallmark Unique Identification (HUID)

The Bureau of Indian Standards (BIS) introduced a scheme on July 1, 2021. While under this scheme, the jewelry manufacturers who are active in its importation and selling must have the six-digit number code, Hallmark Unique Identification (HUID). The primary aim is to make the mandatory use of HUID in India to regulate the composition and quality of gold jewelry. 

Since the HUID BIS Act entered the market, it has transformed the hallmarking system and further made the tracking procedure more accurate. Hallmark Unique Identification code marks a unique way to monitor or trace the database of gold jewelry businesses in India. 

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The Eligibility Criteria for BIS Hallmark Registration 

To register with the Bureau of Indian Standards (BIS), some guidelines are fixed that make gold jewelry operators eligible. Meanwhile, the businesses that are active in jewelry manufacturing and selling are required to obtain the BIS hallmark certificate. For many businesses, understanding the rules and regulations can be defined as difficult. In this situation, the jewelry operators can take a bit of tailored advice from the BIS certification consultant. The BIS consultancy reduced the confusion factors and helped to understand what procedure is best for BIS registration. Meanwhile, here is the elaboration of the eligibility criteria for certification:

1. To become the holder of the BIS hallmark, the applicant is required to have accurate and proper paperwork. The business can provide the partnership certificate, a company’s registration certificate, or a CA certificate. 
2. Retain all details, including the evidence related to the established public company. The evidence includes the manufacturing or organization address, the GST registration certificate with income tax, and many more. 
3. The regulatory framework outlines the management of the gold jewelry business turnover. To ensure fast and easy approval, the business should submit the required documents along with the estimated turnover paperwork.
4. For the BIS hallmark registration, the requirement of a PAN card, a passport, and an Aadhar card is mandatory. 
5. The flowchart illustrates the business processes in the workplace along with the technology used to determine gold purity.
6. The gold organizations must adhere to the unalloyed and guardianship requirements to sell legally in Indian markets.

What are the consequences for non-compliance?

In India, jewelry manufacturers and sellers are not allowed to monitor the gold business without a BIS certificate. It is required to adhere to the standard requirements of the governing body. If the representative fails to comply with administrative rules, they can suffer from the possible consequences, such as a penalty. The authority takes legal action against those businesses that operate the gold manufacturing with a BIS hallmark certificate. 

Under the BIS certification scheme, it is mentioned that the manufacturers and sellers can suffer from 1 to 10 years imprisonment and a potential fine, which can be Rs 2 lakhs to 10 lakhs. 

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Conclusion 

The final report states that the BIS hallmark is a crucial certification for jewelry businesses in India. The hallmark of BIS enables the regulatory body and the customer to ensure quality, promote transparency, and foster trust between buyers and sellers. With a valid certification, the buyer gets the assurance about the jewelry’s quality and purity composition. Expand your gold jewelry business with the Hallmark of BIS certificate . Connect with a well-recognized organization, Legal Raasta, that focuses on complex challenges and specializes in online Bureau of Indian Standards hallmark registration. 

FAQ | Enhance your Knowledge More!

Why is BIS hallmark registration necessary?

The BIS hallmark certification is essential for regulating the silver and gold grades. Further, it is necessary to protect the customers from fraudulent gold businesses. 

Is BIS registration compulsory for gold jewellers?

Yes, the gold jewelry owners who have a desire to sell or import hallmarked gold jewelry need to register with BIS. 

What is the hallmarking fee for BIS?

The fee structure of the jewelry hallmarking depends on the gold and silver items. The charge for a gold piece is Rs 45, whereas for a silver is Rs 35

Can I operate the jewelry business without a BIS certificate?

No, operating the gold jewelry business without a valid BIS hallmark certificate can lead to a possible penalty.