AnchorCert Analytical India Pvt. Ltd Unit 101B, SDF IV, SEEPZ SEZ,

1 UK and European Hallmarking Practices , legislation and...
Author: Virgil McKinney
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1 UK and European Hallmarking Practices , legislation and controlling bodies.AnchorCert Analytical India Pvt. Ltd Unit 101B, SDF IV, SEEPZ SEZ, Andheri (E), Mumbai, , India

2 Agenda The Birmingham Assay Office and the Anchorcert GroupUK Hallmarking The Convention International Association of Assay Offices Gold Standard Assaying Summary & Recommendations

3 PROTECTING THE CONSUMER. SERVING THE TRADE.Since our original conception by our founder innovative silversmith and entrepreneur, Matthew Boulton in 1773, Assay Office Birmingham has been dedicated to protecting the consumer and serving the trade. But Hallmarking started in the UK in 1478. Now renamed The AnchorCert Group, we are comprised of several divisions and specialisms, working globally and geographically based on two continents, delivering the same high standards from every one of our multiple locations in both the UK and India. Globally we are renown for our integrity, our independence and our accuracy, our over riding principle and vision to continue to strive to ‘Be the Best’. We have set up and trained many counties in the art of hallmarking. We opened our India sub Office in July of this year in the SEZ in Mumbai, our 7th sub office.

4 WORLD LEADING CONSUMER PRODUCT SAFETY TESTING (ISO 17025)PRODUCT TESTING LABORATORY (ISO 17025) CONSUMER PRODUCT SAFETY TESTING WORLD LEADING CONSUMER PRODUCT SAFETY TESTING (ISO 17025) Globally recognised as a specialist, bespoke testing laboratory Internationally recognised as Nickel experts Unique testing methodologies, not replicated globally: Quick Nickel Test (5 working days vs 10 day industry standard) Multi-Territory (1 test for Lead & Cadmium for UK, EU, US & Canada) Melt & Assay Lead & Cadmium testing Gold Cupellation Scorification Silver Titration Packaging testing Plating Thickness testing Plating Wear trials/testing .

5 UK HALLMARKING CONSUMER PROTECTIONThe UK has one of the most robust & rigorous hallmarking systems in the world Legislation requires articles of precious metal to be independently tested and hallmarked by an independent third party if they are to be described as precious metal. Traditionally the providers have been one of the UK Assay Offices, of which there are currently four, whose activities are strictly regulated and overseen by the British Hallmarking Council, an executive Non Departmental Public Body, sponsored by the Department of Business, Innovation and Skills. All four Assay Offices take their independence very seriously and pride themselves on their integrity and the high quality of service they offer. They are all UKAS accredited for their main and sub‐office sites, and subject to regular inspection by the Queen’s Assay Master on behalf of the BHC. Weights that are exempt , 7.78 gms for Silver, 1 gm for Palladium, 1 gm for Gold and 0.5 gms for Platinum. We are competitors but we work together to uphold the reputation of hallmarking

6 UK HALLMARKING THE DETAILUK legislation (the amended Hallmarking Act 1973) requires that any item offered for sale or described as gold, silver, platinum or palladium must first be assayed (tested) and hallmarked with its fineness and the “sponsor mark” of the person who submitted it for hallmarking OR it is illegal to describe the item as precious metal if it is above certain minimum weights The item also carries the town mark (brand) of the assay office which is their guarantee that the metal is of the standard indicated by the hallmark. These 3 marks are the legal minimum. An optional traditional fineness mark and date letter may also be added if the customer chooses – this improves the audit trail for each individual item of jewellery There is no negative tolerance – if items do not meet or exceed the required standard, they must be marked down to the next relevant standard Sub offices The mark must be struck by an independent Assay Office. Please show a picture of the marks.

7 AnchorCert Group is accredited to BSI 9001UK Hallmarking ACCREDITATION & ANCHORCERT We believe in continuous improvement, so accreditation is an integral part of our business plan and mission ‘to be the best’. AnchorCert Analytical: UKAS accredited laboratory UKAS 17025 AnchorCert Group is accredited to BSI 9001 UKAS accrediting XRF not just cupellation and titration.

8 UK HALLMARKING TESTING PROCESS The assaying or testing of the precious metal, and the subsequent marking, is therefore critical to ensuring that the consumer and the gold / precious metals markets are protected Guidance notes Product specifics and cross UK agreement The integrity and credibility of the institutions given this responsibility, must be unquestionable and immoveable if the system is to be given any credence Consistency across the offices is key The audit trail must be transparent and robust in order to demonstrate that best practice has been applied in all areas of the process The staff employed must vetted and monitored to protect the sanctity of and consumer trust in each Assay Office The state must be the driving force to ensure that regulation, monitoring and audit are undertaken by qualified, tried and tested, accredited independent experts.

9 One could argue all elements and solder points have to be assayed in order to verify the true caratage of any article. In India this results in destructive testing, to measure the PM content. In the UK solder is allowed as long as it is not excessive. I would suggest Indian Jewellery because of it’s complexity does have excessive solder. Also hollo articles may be filled with non-metallic substances, but these articles have to marked ‘filled’ before hallmarking. There are restrictions on what plating is permitted on what article.

10 UK HALLMARKING AND ITS REGULATORY BODYAll 4 UK Assay Offices are members of the BHC Membership is clearly defined and includes trade and non-trade members The BHC is funded entirely by the UK Assay Offices The BHC supervises the hallmarking activities of the 4 UK Assay Offices to ensure there is adequate provision of hallmarking within the UK It also creates regulations, proposes legal changes and advises the Secretary of State for Business, Innovation and Skills The BHC maintains high standards, monitoring the work of UK Assay Offices and their established sub-offices (including offshore).

11 UK HALLMARKING Government regulatory authorityThe BHC reports into the National Measurement and Regulation Office (NMRO) The aim of the NMRO is to simplify technical regulation for the benefit of British business The NMRO is part of the UK Government department: Business, Innovation and Skills or BIS It is the equivalent organisation to Bureau of Indian Standards.

12 THE ANCHORCERT GROUP AND THE CONVENTIONThe Convention on the Control and Marking of Articles of Precious Metals (shortened to the Hallmarking or Vienna Convention) was signed in Vienna in November 1972 This was an agreement between states to permit mutual recognition of hallmarks The Convention was signed by Members of the European Free Trade Association (EFTA) at that time: Austria, Finland, Norway, Portugal, Sweden, Switzerland and the United Kingdom The Convention establishes a Standing Committee in which all Contracting States are represented Each Contracting State is represented by officials from the relevant Ministry and by representatives of the authorised Assay Offices.

13 THE ANCHORCERT GROUP AND THE CONVENTION STANDING COMMITTEEThe role of the Standing Committee is to supervise all the activities carried out under the Convention The tasks of the Standing Committee are to: consider and review Convention operations to take decisions on technical matters to promote technical and administrative cooperation between the Contracting States to consider measures for securing uniform interpretation and application of provisions to encourage the adequate protection of the marks against forgery and misuse to make recommendations in the case of any disagreements or disputes to examine whether the arrangements of States requesting consideration.

14 THE International Association of Assay OfficesThe International Association of Assay Offices or IAAO is a forum for the exchange of information and promotion of technical co-operation between authorised state Assay Offices The IAAO comprises 47 members from 37 countries Members include Austria, Bahrain, Canada, China, Denmark, Egypt, France, Germany, Hungary, Israel, Italy, Mongolia, The Netherlands, Norway, Poland, Russia, Singapore, Spain, UAE and the UK The IAAO works closely with The Vienna Convention on the Control and Marking of Articles of Precious Metals The IAAO also undertakes the crucially important ‘round robin’ testing for all Convention members.

15 THE IAAO ‘ROUND ROBIN’ The ‘Round Robin’ proficiency testing – an annual process which involves Assay Office assaying and then reporting the ‘fineness’ or precious metal content of an article which are then independently ratified - is a requirement of the Convention All member states participate to ensure consistency of testing This ‘Round Robin’ is operated by the IAAO on behalf of the Convention It publishes its results anonymously to indicate the spread of consistency and accuracy Any member state whose results fall outside of a pre-specified tolerance are required to undergo a repeat test The ‘Round Robin’ process is critically important as it underpins the credibility and integrity of Convention members Inconsistencies could be caused by lack of investment in training, inconsistent or incorrect methodologies, negligence, incorrect or inadequate equipment or tooling That state must also investigate and identify the reasons behind any ‘failures’.

16 ASSAYING BEST PRACTICE THE GOLD STANDARD…Trained, competent employees who are internally audited A culture of integrity – ‘ doing the right thing even when you are not being watched. ‘ Accredited, independent Assay Offices Fully-auditable processes and systems, frequently audited Appropriate investment in technology and tooling Consistency of assaying monitored and maintained via Round Robins – led by an independent Centre of excellence Regular internal auditing No minimum weight exemptions Transparent and open country-wide system State-backed and industry-supported .

17 Summary Independence Integrity Consistency Closer working togetherNetwork globally, join the IAOO Third party proficiency testing is a must Accreditation is a must with regular audits, every year as a minimum Allowing the assay offices to charge for a quality service Clear guidance notes for the industry and notifications for the retailer Consumer education , you way for what you get !! A quality product that is what it says on the tin WILL cost more. Policing is key.

18 MEMBERSHIPS, PARTNERSHIPS & AFFILIATIONS

19 THANK YOU. Any questions?