In the diamond trade, there’s a growing demand among customers in the United States and Europe for detailed origin declarations, even for stones not subject to sanctions. This surge in requests is causing upheaval within the Indian diamond industry, according to industry insiders speaking to Rapaport News.
Confusion Amidst Clarity:
Despite recent sanctions targeting Russian products above 1 carat, many merchants and jewelers in G7 nations are now insisting on origin confirmation for all cut diamonds they purchase. However, confusion abounds regarding the exclusion of diamonds smaller than 1 carat from the import ban, which commenced on March 1. Representatives from the Gems and Jewelry Export Promotion Council of India (GJEPC) and the Bharat Diamond Bourse (BDB) in Bombay highlighted this uncertainty.
Upholding Transparency:
Addressing the process of certification, Mehta emphasized that it’s neither expensive nor time-consuming since most clients merely require self-declarations rather than extensive documentation. However, this demand for additional information is causing confusion and leading Indian exporters to seek the same assurances from their suppliers.
Challenges on the Horizon:
European customers, in particular, are wary of non-Russian mixed claims without confirmed origin details, further complicating matters, according to Mehta.
Seeking Solutions:
To alleviate concerns, the Vigilance Jewelers Committee (JVC) in the US is working on defining specific parameters and requirements for manufacturers to relay to retailers, as explained by Tiffany Stevens, CEO and general counsel of JVC.
Road Ahead:
While the situation has indirectly impacted Indian businesses due to customs delays in Antwerp, the overall impact on retail sales remains uncertain, given the prevailing weakness in the diamond market.
GJEPC plans to convene a meeting of experts to gather feedback on the situation and explore potential solutions in the coming weeks.
Article Source: Rapaport News
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