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Presentation on Hallmarking Scheme for Gold by Parminder Bajaj, Scientist F & Head Hallmarking Bureau of Indian Standards 28 July 2007 3 rd International Gold Summit, N.Delhi Gold Consumption – Key Markets & Indian Scenario Annual Gold Consumption in key markets (in Tonnes):

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Presentation on Hallmarking Scheme for GoldbyParminder Bajaj, Scientist F & Head HallmarkingBureau of Indian Standards

28 July 2007

3rd International Gold Summit, N.Delhi

gold consumption key markets indian scenario
Gold Consumption – Key Markets & Indian Scenario

Annual Gold Consumption in key markets (in Tonnes):

China – 552, USA – 405, Middle East – 408, Turkey – 260,

Saudi Arabia – 165, U.A.E – 115, U.K – 72

Annual Gold Consumption in India -800 Tonnes

  • For Jewellery - 80%
  • For investment - 15%
  • Industrial use - 5%

Jewellery Industry Profile in India (Estimated)

  • Jewellers/Retailers/Manufacturers > 3,00,000
  • Large scale units 100
need to regulate quality
Need to Regulate Quality
  • High Gold Consumption in India
  • Low Purity Index
  • Ensuring Value for money for consumer
  • Providing third party assurance on purity for consumers
market survey
Market Survey

All India Average

2001 2006

(120 Samples in 8 Cities) (162 samples in 16 cities)

  • Samples Failing 89 % 90 %
  • Average shortage in purity 11% 13.5%
  • Highest Purity Shortage 38.6% 44.66%

2001 – Delhi,Mumbai, Chennai, Hyderabad, Jaipur, Bangalore, Ahmedabad & Kolkata

2006 -New Delhi, Gurgaon, Kanpur, Meerut, Ludhiana, Chandigarh, Jammu, Jaipur, Jodhpur, Indore, Thiruvananthapuram, Madurai, Pune, Vadodara, Bhubaneshwar, Ranchi,

what is hallmarking
What is Hallmarking
  • Hallmarking - The accurate determination and official recording of the proportionate content of precious metal .
  • Hallmarks - Official marks used in many countries as an assurance of purity or fineness of precious metal
launch of hallmarking scheme in india
Launch of Hallmarking Scheme in India
  • BIS launched Hallmarking Scheme in April 2000 for Gold Jewellery
  • Gold Medallions were covered in Sept. 2005
  • Jewellery & Artefacts of Silver were covered in Oct. 2005
objectives of hallmarking scheme
Objectives of Hallmarking Scheme
  • To protect consumer against the purchase of gold jewellery with lesser than declared purity
  • Develop export competitiveness
  • Make India as a leading gold market in the world
bis hallmarking scheme
BIS Hallmarking Scheme

The scheme, voluntary at present is operated as Third Party Certification Scheme and involves :

  • Certification of Jeweller (retailer)/ Jewellery manufacturer through grant of licence
  • Recognition of Assaying and Hallmarking Centre according to BIS prescribed criteria
  • The scheme is for :
  • Gold Jewellery/Artefacts (Medallions)
  • Silver Jewellery/Artefacts
certification of jeweller
Certification of Jeweller
  • As per IS 1417: 1999 Gold and Gold alloys, Jewellery / Artefacts – fineness and marking - specification (aligned with ISO 9202:1991)
  • Doc: STI/1417/4 Scheme for Certification of Gold
grades of gold covered in is 1417 iso 9202
Grades of Gold Covered in IS 1417 & ISO 9202

IS 1417 ISO 9202

Fineness Fineness

995 Standard Gold

(for medallions)

958 23 Carat }

916 22 carat } 916

875 21 Carat } Gold for

750 18 Carat } Jewellery and 750

585 14 Carat } artefacts 585

375 9 Carat } 375

No Negative Tolerance Permitted on Fineness/Purity

is 1417 1999 requirements
IS 1417:1999 Requirements
  • Gold alloy including solders for manufacturing jewellery/artefacts shall be free from cadmium, iridium & ruthenium
  • Solders used shall be of same fineness as that of jewellery/artefact except 23 carat jewellery/artefact
    • IS 3095 :1999 Gold solders for use in manufacture

of jewellery- Specification (first revision)

    • IS 2790:1999 Guidelines for manufacture of 23,22,21,18,14 and 9 carat gold (first revision)
is 1417 1999 requirements12
IS 1417:1999 Requirements
  • Gold jewellery/artefacts which may not be Hallmarked are those:
    • fail to comply with specified fineness/caratage.
    • which is not solid or which is made with a hollow center and then filled with base metal, cement, lac or other foreign substance thereby giving the article a false or added weight or strength unless the weight of gold is indicated on the article along with the jeweller’s/ sponsorer’s logo.
    • Gold article/ornament on which it is physically impossible to stamp the marks.
components of bis hallmark
Components of BIS Hallmark
  • BIS Hallmark
  • Purity /Fineness Mark 916
  • Centre’s Mark (example) MMTC
  • Jeweller’s Mark (example) TBZ
  • Code Letter for the Year

of Marking H for 2007

display requirements in the shop
Display Requirements in the Shop
  • Hallmarked Jewellery / Artefactsavailable here.
  • BIS Licence Number. CM/L-
  • Hallmark illustration and definition of each component


  • The relationship of fineness of gold jewellery with caratage as specified in IS 1417

958 = 23 C 916 = 22 C

875 = 21 C 750 = 18 C

585 = 14 C 375 = 9 C

  • Magnifying glass (at least 10X magnification) for viewing hallmark available
  • Complete name and address
recognition of assaying and hallmarking centre
Recognition of Assaying and Hallmarking Centre
  • Based on Criteria for Recognition of Assaying and Hallmarking Centres

HMS /RAHC/G01- January 2001 for Gold

(at par with Vienna Convention requirements)

  • Assaying of Gold - According to IS 1418 (aligned with ISO 11426) &
  • Centres to obtain Accreditation as per ISO/IEC 17025 from NABL
steps in assaying and hallmarking
Steps in Assaying and Hallmarking
  • Receipt of Jewellery and its segregation article wise
  • Checking for homogeneity of the lot by XRF
  • Sampling by Scraping/ Micro Drilling/ Cutting etc.
  • Assaying of the composite sample as per IS 1418 byFire Assay Method
  • In case the sample passes , entire Jewellery lot is hallmarked by laser marking and returned to the Jeweller
  • In case of failure in fire assay, Jewellery is

returned back without hallmarking

fee structure
Fee Structure
  • Application-cum-Processing Fee : Rs.2000/-
  • Certification Fee (As applicable) :
    • Rs. 25000/- for a period of 3 years for location in Metropolis (Delhi, Mumbai, Kolkata & Chennai)
    • Rs. 20000/- for a period of 3 years for location in State/District Head Quarters
    • Rs. 10000/- for a period of 3 years for location in other than Metropolis & District Head quarters
  • Second licence in the same premises - no additional certification fees.
  • 25% discount for Multi-Chain outlets
  • Renewal Application-cum-Processing Fee : Rs.1000/-
  • Taxes applicable 12.36% as service tax & education cess
hallmarking charges
Hallmarking Charges
  • Hallmarking charges depending upon weight of article is payable by jeweller to the hallmarking centres

Wt. of Article (for Gold) Charges/article

Upto 20 gm Rs. 18

From 20 – 100 gms Rs. 50

Above 100 gms Rs.100

Minimum charges for a consignment shall be Rs. 300/-

consumer protection
Consumer Protection
  • Consumers can get hallmarked jewellery tested from any A&H Centre

If found lesser than marked purity

-Testing charges to be refunded to jeweller who hallmarked Jewellery

-Jeweller obliged to satisfy the customer through replacement

initiatives by govt
Initiatives by Govt.
  • Central Scheme for Setting up of A&H Centres in 35 select districts with one time Financial Assistance @15% of Cost of Machinery & Equipment subject to maximum of 15 lakhs per centre
  • Effective Consumer Awareness Campaign thru’ Print & Electronic Media
  • RBI Circular to Banks for Preferential treatment to Hallmarked Jewellery while granting Advances against Jewellery – November 2005
  • Letter to Chief Secretaries of States/UTs for promotion of Scheme
  • Mandatory Hallmarking w.e.f. 1 January 2008
initiatives by bis
Initiatives by BIS
  • Regular Awareness Programmes for the Stakeholders across the country
  • A film on hallmarking for projection during consumer awareness programmes
  • Simplification & Rationalization of BIS Hallmarking scheme
  • Formulation of Hallmarking Regulations for legal back up
progress of gold hallmarking scheme since launch in april 2000
Progress of Gold Hallmarking Scheme since launch in April 2000

Licences granted for Silver since launch = 298

region wise distribution
Region - wise Distribution

Region Licences Centres Gold Articles

Gold ( Silver) Hallmarked

(in lakhs)

(As on 25 July 2007) (As on 30 June 2007)

Central 551 (87) 11 18.21

Northern 298 (56) 1 -

Eastern 670 (19) 3 35.34

Western 1386 (89) 13 77.45

Southern 1201 (47) 27 123.65

Total 4106 (298) 55 254.66

statewise no of licences for gold silver and a h centres
Statewise No. of Licences for Gold(Silver)and A&H Centres


international accreditation
International Accreditation
  • Vienna Convention, 1972 - Convention on The Control And Marking of Articles of Precious Metals – Hallmarking Convention
  • 18 Member Countries : Austria, Finland, Norway, Portugal, Sweden, Switzerland and the United Kingdom, Denmark, Ireland, Israel, The Czech Republic, The Netherlands, Latvia, Lithuania and Poland, Hungary, Cyprus, Slovak Republic
  • In the process of acceding :Sloveniaand the Ukraine
  • Others interested countries : Bahrain, China, India, United Arab Emirates, Uzbekistan
role and functions of the hallmarking convention
Role and Functions of the Hallmarking Convention
  • Objective of the Hallmarking Convention :
    • Facilitate trade in precious metal articles
    • Maintaining fair trade and consumer protection justified by the particular nature of these articles.
  • For that purpose, the Hallmarking Convention has introduced the first international hallmark – the Common Control Mark (CCM) – indicating the precious metal and its fineness.
requirements of vienna convention 1972
Requirements of Vienna Convention, 1972
  • Country to be member of UN or similar body
  • National Hallmarking scheme
  • Appropriate legislation on hallmarking
  • Independent assaying centres which meet the requirements of ISO/IEC 17025 (NABL Accreditation)
  • For further details of the convention please
international accreditation indian status
International Accreditation-Indian Status
  • Indian is No. 1 based on production of gold jewellery of 539 tonne in 2005 followed by Italy of 228 tonne
  • Indian Export of Gold Jewellery during 2005 – Rs. 171.12 billion & expected to be at similar level in 2006-07
  • India as major player in Gem & Jewellery exports is considering joining Vienna Convention for easy access to European markets and enhanced image of Indian Jewellery
  • The existing infrastructure of certification is technically at par with the Convention Requirements
  • Adequate experience of jewellery certification available
  • Setting up of Independent assaying centre/referral lab and separate Hallmarking Regulations is under process
  • Participation in Vienna Convention meetings
emerging trends challenges ahead
Emerging Trends & Challenges Ahead
  • Implementation of Mandatory Hallmarking for Gold Jewellery from 1 January 2008 as decided by Govt. of India involving:
    • Setting up of large No. of A&H Centres
    • Innovative Licensing Mechanism for Over 3 lakh Jewellers
    • Regulatory Mechanism including Surveillance
    • Requirement of Infrastructure & Manpower for BIS
    • Involvement of State Govts. etc. in co-operation with the Major Stakeholders
  • Training of Artisans and Jewellers
  • Stepping Up of Awareness / Publicity Efforts during 2006 & 2007
  • Boosting Exports of Gold Jewellery
  • Becoming Member of the Vienna Convention
contact details
Contact Details

Head (Hallmarking Department)

Bureau of Indian Standards

9, Bahadur Shah Zafar Marg

New Delhi

Phone : 011-23234223

E mail




for the