Bureau of Indian Standards

(Hallmarking Department)

Our Ref: HMD/G-1 04 January 2022

Guidelines on exemptions given in Hallmarking of Gold Jewellery and Gold Artefacts

(Second Amendment) Order, 2021 dated 23.06.2021

1. Exports related transactions

i) Clause 2(3)(a) of the Hallmarking Order exempts ‘any article meant for export, which
conforms to any specification required by the foreign buyer’ from the scheme of hallmarking.
However, such ‘specification’ does not imply that there must be a pre-existing export order prior
to manufacture, storing etc. It only implies that gold articles of any physical specification (and
not necessarily those which are currently specified under IS 1417:2016) are excluded from
hallmarking, provided such physical specification (of purity, fineness etc.) are as per
requirements of the foreign buyer. This is also considering that much of manufacturing in the
industry happens in anticipation of exports and also that large amount of export is made out of
ready stock.
ii) All jewellers, who hold a valid IEC and transact only in the export stream, meaning that
such jewellers only undertake export transactions and do not transact in the domestic stream,
shall not fall within the framework of hallmarking and no compliance, including registration etc.
shall be required to be carried out by them. Similarly, all sales made to such an exporter would
therefore be exempted from hallmarking. In this regard, a declaration as per format prescribed
at Annexure A shall be submitted by the selling jeweller from the exporter, at the time of selling
un-hallmarked gold articles to him.
iii) In case where the exporter effects domestic sales also and where common inventory is
maintained by such an exporter, for operations in export and domestic stream, hallmarking shall
be carried out prior to making sale in the domestic stream.
iv) The sale of gold articles on a B2B basis to an exporter would be exempted provided the
articles are ultimately intended for export. Provided that where such articles are being sold
without hallmarking on account of eventual export, the selling jeweller would be required to
obtain a declaration from the exporter (having an active IEC) in respect of such sales, to the
following effect –“In respect of the purchase(s) made from [Selling Jeweller], we [Exporter] do
hereby declare and state as follows-
a) We have obtained and presently maintain an active IEC issued by the Directorate
General of Foreign Trade, being IEC no- <>;
b) The above articles being purchased by us from [Selling Jeweller] are expected to or may
be exported by us, partly or wholly, in the course of our business;
c) Where the said articles are sold in the domestic stream, the same shall be duly
hallmarked by us prior to undertaking such domestic sale.
(A standalone format of the declaration is enclosed as Annexure B)
 For such procurements made, the exporter shall not be called upon to provide a one-to-one
correlation as to end use of each individual un-hallmarked procurements. Absent eventuality of
any domestic sale without hallmarking, the jeweller would be considered to have sufficiently
complied with the provisions of hallmarking.

2. Gold articles meant for export and re-import as per trade policy of the Government of
India
Clause 2(3)(h) of the Hallmarking Order exempts from mandatory hallmarking ‘any article meant
for export and re-import as per trade policy of the Government of India’. There are several schemes
under the trade policy where gold articles exported may have to be re-imported owing to various
reasons inter alia including non-acceptance by consignee, other rejections, damages etc. In all such
instances, exemption from hallmarking shall be permitted solely based on documents as prescribed
in terms of para 2.06 of the Foreign Trade Policy. Further, such re-imported gold articles would
thereafter be subject to the routine hallmarking provisions and in case the same are thereafter
exported or are meant for export or sold to another exporter, export related exemption under Clause
2(3) (a) of the Hallmarking Order would be available.

3. Gold articles meant for international exhibitions

Clause 2(3)(i) of the Hallmarking Order exempts from mandatory hallmarking “any article meant
for international exhibitions”. In addition to exhibitions held outside the Country, this exemption
is also applicable to exhibition held within the Coutry targeted at foreign buyers. However, since
such an exhibition in intended primarily for foreign buyers, the gold articles exhibited and sold to
foreign buyers at or pursuant to such exhibition would be exempted from hallmarking. In this
regard, the selling jeweller may obtain passport and/or visa details of the foreign buyer (where he
is an individual or representative of a non-resident entity [in which case appropriate authority letter
should also be kept on record]) or any other document that establishes the residency of the foreign
buyer, including that of a non-resident entity.

4. Gold articles meant for domestic business to business exhibitions approved by the
Government

Clause 2(3)(i) of the Hallmarking Order exempts from mandatory hallmarking any articles meant
for domestic business to business exhibitions approved by the Government. The exemption would
be applicable where the same is as per the description of an exhibition, being in the nature of an
‘event’ specified at item (1) to schedule II to Customs Notification 8/2016-Cus dated 5th February
2016 and approved by Central/ State Government /any statutory body like Directorate of
Industries, etc., under a State Govt . Further, the said exemption from hallmarking shall be
available only where no sales are to be effected from the said approved exhibition and the gold
articles are only meant for ‘display’ at such an exhibition.
The exhibition organizer may also provide a prior intimation to the concerned Branch Office.

5. Definitions of ‘kundan’, ‘jadau’,and ‘polki’ Jewellery

Clause 2(3) (k) of the Hallmarking Order exempts from mandatory hallmarking special categories
of jewellery, namely Kundan, Polki and Jadaau. The following definitions may be applied while
arriving at a conclusion whether a jewellery article is ‘kundan’, ‘jadau’, or ‘polki’ Jewellery

Kundan: shall mean jewellery which is a filling of fine gold (minimum 995 fineness), layers of
very thin foil or leaf, similar to a thickness of “silver varak”.
Jadaau: shall mean jewellery which is a way of mounting or cladding stones onto a piece of gold
or silver jewellery.
Polki: shall mean jewellery which may or may not be a stone, or a diamond, or a semi-precious
stone, a piece of glass, or any other stone, cut and polished in abstract shapes, disproportional
facets and forms, unequal sizes, or ground and polished in shape called cabochons, which are
convex shaped, curved stones.
 Annexure A- Format of undertaking to be provided by an IEC holder , having only export transactions

“In respect of the purchase(s) of the items described hereunder, made from [Selling Jeweller], from its
certified sales outlet located at_____, having BIS registration number_____, we [Exporter] do hereby declare
and state as follows –

i. We have obtained and presently maintain an active IEC issued by the Directorate General of Foreign
Trade, being IEC no- <>

ii. We only undertake exports of gold jewellery, artefacts and similar articles and do not transact in the
domestic stream with regard to the said items;

iii. The above articles being purchased by us from [Selling Jeweller] are expected to be wholly exported by
us, in the course of our business;

Items description:

Particulars Details
Item description
Quantity
Weight
Invoice details
 Annexure B- Format of undertaking to be provided by an IEC holder, preferably having
export transactions in the past one year

“In respect of the purchase(s) of the items described hereunder, made from [Selling Jeweller],
from its certified sales outlet located at_____, having BIS registration number_____, we
[Exporter] do hereby declare and state as follows –
i) We have obtained and presently maintain an active IEC issued by the Directorate
General of Foreign Trade, being IEC no- <> ;
ii) The above articles being purchased by us from [Selling Jeweller] are expected to
or may be exported by us, partly or wholly, in the course of our business;
iii) Where the said articles are sold in the domestic stream, the same shall be duly
hallmarked by us prior to undertaking such domestic sale.

Items description:
Particulars Details
Item description
Quantity
Weight
Invoice details