Setting up of Hallmarking Centres and offsite centres

Setting up of Hallmarking Centres and offsite centres

Praditha Engineers supports applicants of Assaying & Hallmarking Centres in their efforts to hallmark jewellery, helping them obtain BIS recognition. Additionally, they provide assistance to Gold and Silver refineries in obtaining BIS License.

Procedure for Getting Assaying and Hallmark Centre Recognition:

1. Online portal generation on BIS website (www.manakonline.in) 2. Submission of the application form online along with all the documents 3. Scrutiny of application file by BIS officials 4. On-site Visit by BIS Hall Marking Auditor 5. Testing of In-house sample by the Auditor 6. If the Auditors are satisfied with all the documents submitted with the application and satisfied with the competence of the Personnel employees, then BIS would grant Assaying and Hallmark Centre Registration.

The documents required for the Recognition of Assaying and Hallmark Centre

• Establishment proof of the firm or company

1. Certification of Registration (COR) granted by Registrar of Companies along with MOA;
2. Registered Partnership Deed in case of a Partnership Firm;
3. Original Certificate from a CA (Chartered Accountant), if any, the applicant is a Proprietorship Firm.

• Address Proof of Firm

1. Income Tax Evaluation Order;
2. GST Registration Certificate;
3. Sale or Lease Deed Agreement;
4. Registration with State Government department or Trade Licenses;
5. Property tax receipt;
6. Rent Agreement.

• Identity Proof of The Applicant:

1. Aadhar verification or e-signature;
2. Self-certified copy of Aadhar Card/ Driving License/Voter ID or Passport or PAN Card or ID Certificate and photo grant by Gazetted Officer.
3. Map the location of premises from the nearest landmark.
4. Affidavit seed undertaking.
5. Purity manual of the Assaying and Hallmarking Centres prepared based on Generic Quality Manual provided by BIS.

Hallmarking Center Setup Requirements

1. Location and Space Requirements

• Commercial space of 600-1000 square feet
• Strategic location suitable for regulatory approvals
• Dedicated areas for:
• Testing operations
• Weighing procedures
• Laser marking activities
• Location must be compatible with Pollution Control Board and Fire Department regulations

1. Infrastructure and Safety Requirements

• Well-ventilated testing area
• Essential equipment:
• Fire assay furnaces
• Precision weighing scales
• Crucibles and testing tools
• Safety and security features:
• Backup power system
• Fire safety equipment
• CCTV surveillance system
• Secure safe for jewelry storage (pre and post hallmarking)

1. Staffing Requirements Key personnel positions:

• Assay Master
• Quality Manager
• Deputy Assay Master
• XRF and Laser Machine Operators
• Receipt and Delivery Section Staff
• Security Personnel

1. Regulatory Compliance Mandatory requirements:

• Staff training on IS 1418 standards
• Implementation of IS 15820 guidelines
• Current approvals from:
• Pollution Control Board
• Fire Department

List of Testing and Measuring Equipment required:

XRF Testing Machine,
Laser Marking Machine

Micro-Balance, Semi micro balances and Weighing Scale

Melting, Cupellation, Annealing Furnaces

Cupels (For 1 Year)

Sampling Tools (Cutting Pliers, Chisels, Micro Drills, Scrappers)

Tongs & Forceps, Balling Plier

10X Magnifying Glass

Hammer and Anvil (hammer of 400g) / Power Press

Emery Paper & Sand Papers (Different grades)

Micrometer

Fume hood with Scrubber

Cleaning Brush

Hydrometer

Numbering Device

Hot plate

Partying Acid

Glassware

Parting Tray with thimbles of Pt or Pt/Ir or Pt/Rh or Unglazed Silica, Aluminium & Stainless Steel Tray

Jeweller’s Rolling Mill

Crucibles (Pure Graphite Crucible for melting Of scrapings)

Scorification Dishes (dia 50mm required for Testing of White Gold)

Purity Certificates of Gold, Silver, Copper & Lead

3 Gold Standards 22k (916),18k (750),14k (585)

Calibration Certificates of Furnace, Balances, Thermometer, weight Box

CCTV arrangement, Safe locker

Fire extinguishers such as CO@ and ABC.
Computers, Furniture and Online UPS,

Diesel Generator of capacity 15 KW

Conditions for the Rejection of Assaying and Hallmark Centre Recognition Application

1. If the applicant has made the application right away after the case of misuse of Hallmark before completion of the cooling period.
2. A prosecution case is pending against the applicant Centre.

Offsite Centers (OSC) - Establishment Guidelines

1. Location Requirements

• Can be established in any district nationwide
• Maximum distance: 100 kilometers from parent AHC
• Limit: One AHC can operate maximum 5 OSCs
• AHCs processing 500 + articles daily must establish an AHC or OSC in an uncovered district

1. Operational Framework Facilities and Functions:

• Maintains all standard AHC facilities EXCEPT fire assay equipment
• Performs all regular hallmarking operations for gold jewelry
• Follows BIS-prescribed procedures and standards

1. Testing Responsibilities Parent AHC Obligations:

• Must conduct all fire assay testing for OSC-received jewelry
• Maintains quality control oversight
• Ensures compliance with hallmarking standards

This arrangement enables wider coverage of hallmarking services while maintaining testing quality through centralized fire assay testing at the parent AHC.

The work flow at and between OSC and parent AHC is as follows:

Work Flow at AHC

1. Receipt of Jewellery
2. Preliminary Examination
3. XRF Testing
4. Sampling
5. Sample
6. Weighing Samples
7. Fire Assay (Cupellation, Annealing, Parting)
8. Laser Marking
9. Delivery to Jeweller

Work Flow at OSC

1. Receipt of Jewellery
2. Preliminary Examination
3. XRF Testing
4. Sampling
5. Sample

OSC Operations and Regulatory Framework

1. Operational Process Flow

• Sample Collection and Testing:
• OSC collects jewelry samples
• Samples forwarded to parent AHC for fire assay
• AHC conducts testing and shares results with OSC
• Final Processing:
• OSC performs laser marking on compliant jewelry
• Handles final delivery to jewelers

1. Staffing and Equipment Requirements Personnel:

• Must maintain full staff complement except fire assay personnel
• Dedicated Quality Manager required
• Parent AHC's Quality Manager oversees both facilities

Equipment:

• All standard testing equipment per IS 15820:2009
• Excludes fire assay equipment
• Complete laser marking capabilities

1. Recognition and Fee Structure Application Process:

• Submission through BIS portal
• No recognition or application fee required
• Assessment fee: Rs 5,000 per man-day for audits

Recognition Terms:

• Automatically renewed with parent AHC
• No separate renewal fee
• Valid as long as parent AHC maintains recognition

1. Compliance and Accountability Parent AHC Responsibilities:

• Bears full responsibility for OSC operations
• Liable for any violations at OSC
• Must maintain quality standards across both facilities

Regulatory Oversight:

• BIS can suspend OSC operations for non-compliance
• Parent AHC entitled to hearing before OSC termination
• OSC recognition automatically terminates if parent AHC is suspended/de-recognized

LICENSING OF REFINERY

Any manufacturer engaged in refining by aqua-regia or electrolytic process may apply for a grant of licence with self-certified copies of documents listed below with the on-line application or submit hard copies to the Branch office of BIS having jurisdiction of the area where the refinery or mint is located, with the application.

1. a) Proof of establishment of the firm or company (Any one of the document given below)
2. i) Certificate of Registration issued by Registrar of companies
3. ii) Registered Partnership Deed in case applicant is a Partnership Firm.

iii) Certificate from a Chartered Accountant if applicant is a Proprietorship Firm.

1. b) Proof of address of firm's premises (Any one of the document given below)
2. i) Registration with State Government Authority/ Trade Licences
3. ii) GST registration certificate.

iii) Income Tax Assessment Order

1. iv) Property tax receipt
2. v) Rent agreement with last rent receipt
3. vi) Sale/ Lease Deed agreement.

1. c) Proof of Identity of the signatory
2. i) Aadhar based verification/ e- signature
3. ii) Self-certified copy of any one of following documents as identity proof of signatory on the application:

- Aadhar Card

- Driving Licence

- PAN card

- Voter Identity card

- Passport

- Identity Certificate with photo issued by Gazetted Officer on official letterhead.

1. d) Map indicating location of premises from nearest land mark
2. e) Micro or Small Scale Industry Certificate, if applicable;
3. f) Process Flow Chart of Refining or Minting, as applicable;
4. g) Design and Weight of the Bullion or Coin, as Applicable;
5. h) List of Manufacturing Machinery;
6. i) List of Test Equipment with Valid Calibration;
7. j) Accreditation of the Laboratory of Refinery or Mint by National Accreditation

Board for Testing and Calibration Laboratories (NABL);

1. k) Plant Layout;
2. l) List of Technical Personnel;
3. m) List of Certified Reference Material; and
4. n) Test Report of in-house Testing.

All applications & inclusion shall be processed based on factory testing. During the preliminary inspection the availability of infrastructure in terms of manufacturing, testing facilities and competent personnel shall be verified.

The refinery shall also demonstrate the process of refining as declared by them to the BIS auditors. The sample shall be got tested in the laboratory of the refinery to check conformance to IS 1417 and verify the competency of the testing personnel (assayer).

In case the applicant offers both the varieties of 999 &995 fineness, then the factory testing shall be carried out for 999 fineness only.

Sample of 999 fineness variety from another lot shall be drawn and sent to BIS referral assay lab/ BIS approved laboratory (in case of non-acceptance by BIS Lab) for independent testing as verification sample. However, if sample fails during factory testing, no sample shall be drawn for independent testing. The normal operation of the licence shall be allowed to continue if the verification sample passes.

In case of failure of verification sample drawn during independent testing suspension of marking shall be imposed. A special visit shall be made on the request of refinery for verification of corrective actions and drawl of sample for independent testing. Resumption of marking shall be permitted if the sample is found conforming to the requirements in independent testing. If the sample fails again the case shall be processed towards cancellation as per Hallmarking Regulations.

The Scope of the refinery licence covers the following:

1. a) Gold Bullion or Gold Coin
2. b) Fineness (999 or 995)
3. c) Design and Weight of Bullion Bar or Gold Coin No negative tolerance shall be permitted on declared weight.

Refinery Licensing and Operational Requirements

1. Post-License Operations

• Must follow current Scheme of Testing and Inspection guidelines
• Regular compliance with updated regulations
• Adherence to all amendments as implemented

1. Record Keeping Requirements Raw Material Documentation:

• Type of materials received
• Quantity tracking
• Source verification
• Compliance with Hallmarking Regulations

3. Quality Control Records:

• Detailed testing documentation
• Inspection reports
• Product traceability records
• Final product identification systems

4. Purity Standards and Expansion Standard Gold Bars (995 Fineness):

• Immediate inclusion permitted for refineries with existing 999 fineness license
• No additional verification required for downgrade

5. Upgrading to 999 Fineness:

• Requires special facility inspection
• Verification of:
• Additional manufacturing capabilities
• Enhanced infrastructure
• Factory testing facilities
• Special audit visit mandatory