Assay and Hallmarking Regime for Precious Metals

A fineness report (ayar raporu) is a report documenting the degree of fineness of a precious metal, issued by the General Directorate of Mint and Stamp Printing House (Darphane) or by private assay offices (ayar evi) whose competence has been approved. On the import of non-standard unprocessed precious metals, submission of a fineness report to the customs administration is mandatory, and as a rule only the Turkish State Mint may issue this report; reports of private assay offices may be accepted only for imports of up to 5 kilograms under the Inward Processing Regime (Dahilde İşleme Rejimi) (Communiqué (tebliğ) No. 2008-32/34, Article 6(3)). Where tolerance limits are exceeded or a report contrary to the facts is issued, sanctions are applied, extending as far as revocation of the certificate of authorisation (yetki belgesi).

The legal basis of the regime is Law No. 1567 on the Protection of the Value of Turkish Currency (1567 sayılı Türk Parasının Kıymetini Koruma Hakkında Kanun) and Decree No. 32 on the Protection of the Value of Turkish Currency (32 sayılı Karar). The technical, administrative and supervisory details are governed by the Communiqué on Determining the Standards, Selection and Supervision Principles of Assay Offices to Be Authorised in the Analysis of Precious Metals and Precious Stones (the Assay Offices Communiqué), published in Official Gazette No. 31774 of 10 March 2022. The Borsa İstanbul A.Ş. Procedure for the Precious Metals and Precious Stones Markets (Kıymetli Madenler ve Kıymetli Taşlar Piyasası Prosedürü) regulates the application of the standards in the market.

What Conditions Apply to Assay Office Authorisation?

To operate as an assay office, an assay office certificate of authorisation must be obtained from the General Directorate of Mint and Stamp Printing House (Turkish State Mint). The application is accompanied by a trade registry (ticaret sicili) certificate, tax registration, an approved layout plan, a technical facility with an enclosed area of at least fifty square metres, and the social security records of the staff.

The staffing structure is binding: the laboratory must employ laboratory technicians who graduated from vocational high schools or vocational colleges providing chemistry training; the technical manager must be a materials, metallurgical, chemical or jewellery engineer, a chemist or a precious stone expert. Each assay office also has at least one administrative staff member who is at least a high school graduate.

The application is examined on site; the committee carries out a technical competence test using samples of predetermined fineness. Applications that do not meet the competence criteria, or whose results do not fall within the tolerance limits, are rejected. In the event of rejection, a new application may not be made until three months have passed. Even after the certificate of authorisation is obtained, opening a branch, transferring the assay office and changing its trade name are subject to permission. The list of authorised assay offices is notified to the Directorate General of Customs of the Ministry of Trade and published on the Directorate General's website.

What Are the Analysis Standards?

The method is not free. For gold fineness, cupellation, that is, the fire assay technique using lead (TS EN ISO 11426), is applied; for silver, volumetric titration, that is, the volumetric method (TS ISO 13756); for platinum and palladium, gravimetric precipitation, that is, the weight-based method (TS EN ISO 11210 and TS EN ISO 11490). The X-ray spectrometric method under BS EN ISO 3497:2001 may be used only for the analysis of jewellery items produced in limited numbers or made to order.

Devices are calibrated at least once a year, and precision balances at least twice a year, by bodies accredited by the Turkish Accreditation Agency (TÜRKAK), and certified.

Every report issued is recorded: in the Precious Metals and Precious Stones Fineness Report Monitoring System established by the General Directorate, each assay office is given a separate code number; the assay office records every report it issues in the system and is responsible for the record. The relevant units can verify a report through the system using the assay office code and report number.

Who Is Responsible for Safekeeping the Sample?

This is the point that gives rise to the most disputes in practice. The entire process of the goods' arrival at the assay office, the taking of samples and their return to the person concerned is carried out under joint custody, and the goods must be insured. Otherwise, the resulting liability lies with the assay office concerned.

If the report is objected to, the samples are re-analysed at another assay office. If the dispute continues there too, the final analysis is carried out at the Turkish State Mint; the fineness determined by the General Directorate is final and that report cannot be objected to.

What Are the Tolerance Limits and Sanctions?

The acceptable deviation is plus or minus one part per thousand for gold, platinum and palladium samples and plus or minus two parts per thousand for silver samples. The critical detail is this: the results must be within the tolerance limits for all the samples taken to the assay office; hitting the average is not enough.

An assay office found not to have fulfilled its obligations under the Communiqué is warned and given thirty working days to remedy the deficiency. The operating licence (faaliyet izni) of an assay office that fails to remedy it within this period, or that is found to have breached its obligations on four different occasions within the same validity period, is revoked without the need for any further warning.

The certificate of authorisation of those who issue reports contrary to the facts is revoked without any period being granted, and legal proceedings are initiated against them. Those whose certificate of authorisation has been revoked may not reapply until three months have passed.

What Should Be Done?

• Apply to the Turkish State Mint and obtain an assay office certificate of authorisation before starting operations; set up the facility with at least fifty square metres.
• Employ, without exception, certified laboratory technicians, a qualified technical manager and administrative staff who are at least high school graduates.
• Apply cupellation for gold, volumetric titration for silver, and gravimetric precipitation for platinum and palladium.
• Have devices calibrated once a year, and precision balances twice a year, by a TÜRKAK-accredited body.
• Record every report you issue in the Fineness Report Monitoring System; remember that you are responsible for the record.
• Handle the arrival, taking and return of samples under joint custody and have the goods insured.
• Obtain permission in advance for opening a branch, a transfer or a change of trade name.
• If you receive a warning, remedy the deficiency within thirty working days; four different breaches within the same validity period are grounds for revocation.

Warning. The information in this article is for general information purposes and does not constitute a legal opinion. Foreign exchange and precious metals legislation is a frequently changing area; the amounts, rates, thresholds, time limits and dates in this article may change in line with the legislation in force. Verify the latest version of the legislation before every application and transaction. Current texts are available at mevzuat.gov.tr.

Source: Law No. 1567 · Decree No. 32 · Assay Offices Communiqué (Official Gazette 10 March 2022, No. 31774) · TS EN ISO 11426, TS ISO 13756, TS EN ISO 11210, TS EN ISO 11490, BS EN ISO 3497:2001 · Borsa İstanbul PMPSM Procedure

Related page: Jewellers, Jewellery and Precious Stones