How to apply for Hallmark Registration?

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How to apply for Hallmark Registration?

In India, jewelry has a very different value and sentiment for people. Jewelry adds glory and enhances one’s beauty as it has jewels and precious metals like gold etc. It further symbolizes power, wealth, and status. However, before buying jewelry, the customer needs to be cautious in terms of its purity. Effective 16th June 2021, every piece of jewelry in India requires certification of its purity. Such certification comes in the form of Hallmark Registration which the jeweler has to be take to prove the purity of the metal.

Today in this article, we will try to explain to you about Hallmark and its Registration process. Further, we will give you a deep understanding of the importance of Hallmark.

Table of Content:

Meaning of Hallmark

Hallmark is a kind of mark or stamp on metal products like gold, silver, etc. Hallmark basically preserves the interest of the buyer. It helps to assess the purity of the metal products.

In India, the concept of Hallmark began in the early 2000s. Before that, there was no sure shot way for buyers to determine the purity of gold or any other ornament they wish to buy. Hallmark ensures that the metal used in the jewelry is persistent with the national and international quality standards.

Regulating Authority of Hallmark in India

In India, the entire provisions and process of Hallmark Registration or Certification are governed by the Bureau of Indian Standards (BIS), 2016, and BIS Rules and Regulations, 2018. Hence, BIS is the authorized agency that issues a Hallmark License or BIS Hallmark License.

Advantages of Hallmark Registration

If the jewelry has a hallmark, it brings advantage to both Seller and buyer:

  • For Seller with Hallmark Registration/BIS License

      • The product gives clear indication and strong evidence of its quality and capability. Thus, Assurance of quality and purity of gold jewelry
      • International effectiveness and customer satisfaction
      • It provides satisfaction to the prospective investors of your brand.
  • For Consumer

      • A Buyer get assurance and authenticity of the product which he/she is buying
      • The seller cannot manipulate the price of the product
      • The evidence of purity is acknowledged as certification is provided by a government authority
      • Buyer can have the assurance that he is not buying a fraud product
      • Consumers can get their hallmarked jewelry tested from any of the BIS Recognized A&H centers on a chargeable basis. Further, it can lodge a complaint with BIS in case of shortage in purity is observed

Registration of Hallmark: Is it Compulsory?

Effective from 16th June 2021, Government has made Hallmark Registration compulsory. Prior to June 2021, it was not compulsory. However, the manufacturers, wholesalers, retailers have got a time relaxation till August 2021 to obtain registration. Till this time, no penalty will be applicable to jewelers.

Further, there are few categories of jewelers and jewelry who have an exemption from obtaining compulsory Hallmark on silver and gold articles. They are as follows:

  • The jewelers whose annual turnover is up to Rs. 40 lacs
  • Jewelry for Government approved B2B domestic and international exhibitions
  • Kundan, Polki, etc.

Documents Requirement for Hallmark Registration

Any jeweler who wishes to obtain Hallmark Registration have to get ready with the following documents:

a) Proof of establishment of the firm or company (Any one of the documents given below)

  • Certificate of Incorporation along with MOA/AOA of company
  • In case of Partnership Firm, Registered or Notarized Partnership Deed
  • If the applicant is a Proprietorship Firm, documents like Trade License or GST Registration Certificate

b) Proof of address of firm’s premises (Any one of the documents given below)

  • Trade Licences
  • GST registration certificate.
  • Income Tax Assessment Order
  • The latest Property tax receipt
  • Rent agreement with last rent receipt
  • Sale/ Lease Deed agreement.

c) Proof of Identity of the signatory

  • Aadhar based verification/ e- signature
  • Self-certified copy of any one of the following documents:
      • Aadhar Card
      • Driving Licence
      • PAN card
      • Voter Identity card
      • Passport
      • Identity Certificate with photo issued by Gazetted Officer on official letterhead.

d) Map indicating location of premises from nearest landmark

Location map of premises from some nearest prominent landmark for each outlet, as Applicable (illustrative only).

e) Proof in regard to the annual turnover

  • Self-certified copy of GST return of the previous financial year, or
  • Certificate issued by a Chartered Accountant for Turnover, if firms/ Jewellers turnover is below 40 lakhs and he does not have GST Registration, or
  • The balance sheet of Jeweller, duly certified by the Chartered Accountant. An undertaking may be obtained from the Jeweller that if his turnover exceeds threshold limit he will take GST Registration and will submit GST Return to BIS after completion of one financial year and difference as per actual turnover.
  • In the case of a new firm, an undertaking from the firm with expected turnover and assurance to submit GST return after completion of the current financial year and deposit the difference as per actual turnover.
  • In the case of a corporate certificate of registration if the applicant has only one single GST return then the firm may be asked to submit a certificate from Chartered Accountant mentioning the turnover of each outlet.

Process of Hallmark Registration

The following is the process of registering a Hallmark:

  • Preparation of documents for BIS registration
  • Filling of the hallmark application form online
  • Submitting the application along with the mandatory documents
  • An inspection will be done by the inspector of the concerned BIS department

Display Requirements at Jeweler’s Sales Outlet

  • Outside Sales Outlet: After getting registration, the jeweler shall display the logo of BIS with the wording as “Hallmarked Jewellery available for sale”. This said wording has to be prominently displayed outside of the jeweler’s sales outlet.
  • Inside Sales Outlet
      • Marking (components of hallmark) to be seen on the Hallmarked article.
      • The magnifying glass of a minimum of 10X magnification is available for customers to verify the details of the Hallmark on the jewelry/artifact.
      • Weighing balance of 0.01 g accuracy available for verification of the weight of the jewelry/artifact;
      • Contact details of BIS office for any query or complaint; and
      • Hallmarking charges, etc.

Takeaway

The brands that follow the hallmarking process dutifully get more franchisees as compared to others. Hallmark provides a chance for the jeweler to inform the public at large in how they maintain their standards for quality control. Further, they can claim that they consistently do what they claim. It provides international competitiveness and enhanced customer satisfaction. It also provides third-party assurance and satisfaction that they have got the right purity of gold for the given price and protection against victimization of irregular gold quality/purity.

Get in touch with Legal Window’s professional if you need some guidance in regards to the Hallmark Registration. Our well-versed professional team lets you go through the tedious registration process with minimal paperwork and less manual interference.

LegalWindow.in is a professional technology driven platform of multidisciplined experts like CA/CS/Lawyers spanning with an aim to provide concrete solution to individuals, start-ups and other business organisation by maximising their growth at an affordable cost. Our team offers expertise solutions in various fields that include Corporate Laws, Direct Taxations, GST Matters, IP Registrations and other Legal Affairs.

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