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The Bureau of Indian Standards: From ISI to BIS and the Road to Mandatory Hallmarking

5 July 2023

The Bureau of Indian Standards: From ISI to BIS and the Road to Mandatory Hallmarking

The Bureau of Indian Standards (BIS) is the institutional backbone of India's hallmarking system. Its evolution from the Indian Standards Institution (ISI) to BIS, and the passage of the BIS Act 2016, created the legal and operational framework that made mandatory hallmarking possible.

The Indian Standards Institution (1947–1987)

India's national standards body was originally established in 1947 as the Indian Standards Institution (ISI). The ISI operated under the Indian Standards Institution (Certification Marks) Act, 1952, setting product quality standards across industries. However, its enforcement powers were limited, and hallmarking of precious metals was not within its original scope.

BIS Established Under the 1986 Act

In 1986, the Bureau of Indian Standards Act replaced the ISI framework and established BIS as the new national standards body under the Ministry of Consumer Affairs, Food & Public Distribution. BIS inherited the ISI's standards-setting mandate but with a broader scope and stronger institutional structure.

It was under this framework that BIS partnered with the World Gold Council in the 1990s to develop and launch India's voluntary gold hallmarking scheme in 2000.

The BIS Act 2016: Enabling Mandatory Hallmarking

The transformative legislation came on 21 March 2016, when the Bureau of Indian Standards Act, 2016 received Presidential assent. This act replaced the 1986 legislation and critically expanded BIS's powers.

Two sections were particularly important for hallmarking:

Section 14 empowers the Central Government to notify articles of precious metals that must conform to Indian Standards. This provision gave the government the authority to make hallmarking mandatory for specific categories of gold and silver articles.

Section 15 prohibits the manufacture, import, sale, distribution, and storage of notified articles that do not bear the Standard Mark. Violations carry penalties of imprisonment up to one year, or fines of not less than one lakh rupees and up to five times the value of the goods.

BIS (Hallmarking) Regulations, 2018

Following the Act, BIS notified the BIS (Hallmarking) Regulations, 2018, providing the comprehensive operational framework for hallmarking. These regulations specify the requirements for jeweller registration, hallmarking centre licensing, testing procedures, hallmark composition, and compliance monitoring.

From Announcement to Implementation

With the legal framework in place, the government announced mandatory hallmarking for gold jewellery in November 2019, with an initial target date of 15 January 2021. The Quality Control Order for Mandatory Hallmarking was issued on 15 January 2020, giving the industry a one-year preparation period.

COVID-19 caused the deadline to be extended twice — first to 15 June 2021, then to 23 June 2021. When mandatory hallmarking finally went live on 23 June 2021, the BIS Act 2016 provided the legal teeth that ensured compliance.

The Institutional Foundation

BIS's evolution from ISI to a modern standards body with explicit mandatory hallmarking powers took nearly seven decades. But the result is a regulatory framework that covers standard-setting, testing, marking, enforcement, and consumer redressal — the complete infrastructure needed to protect India's gold consumers.

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