
Importers that bring jewelry containing diamonds into the United States will have to specify the gems’ “country of mining” beginning in April, according to rule changes posted last month by U.S. Customs and Border Protection (CBP).
“Country of mining” is defined as “where the diamonds were mined, extracted, produced, or manufactured wholly or in part.” (Current rules require information on “country of origin,” meaning where the diamonds are cut and polished.)
CBP’s bare-bones notice left the trade with a long list of questions. For one, it requires importers to list “country of mining” (singular) but doesn’t specify how importers should handle shipments of goods with diamonds that were extracted from multiple locales.
The notice also wasn’t clear if the requirement applies only to diamonds of 0.5 ct. and up—which are the only diamonds currently subject to sanctions. Furthermore, it didn’t say whether Customs would require some form of backup documentation for any required statements.
Some in the trade wonder whether so-called “grandfathered” diamonds—purchased before March 1, 2024—would be exempt. Last September, the Treasury Department’s Office of Foreign Assets Control (OFAC) issued two types of general license that allow the import of Russian diamonds bought before that date.
January’s notice also didn’t specify when in April the changes will take effect—it just says “April 2025.” (CBP did not respond to a list of questions sent by JCK last week.)
U.S. companies reacted to the new rule with alarm, though most didn’t want to be identified given the sensitivity of the issue.
“This cannot be complied with, frankly,” one New York dealer tells JCK. “They are surely not looking to put tens of thousands of people out of business.”
An industry executive who has talked with government officials in the past says: “We have reached out, but the U.S. government seems to be on shutdown right now. There seems to be a disconnect between Customs, the State Department, the last administration, and this administration. A lot of the trade is brushing this off, saying it’s impossible, but we need to engage with Customs. But with the U.S. government being so shut down, how do we engage?”
Sara Yood, CEO and general counsel of the Jewelers Vigilance Committee, called the new rule “confusing.”
“It’s not clear how what they’re requesting aligns with the statements that Treasury put out previously,” she says.
She notes that JVC filed comments on this proposed change in December, but those comments were never published and seem to have been ignored. The organization is working on getting additional clarification on the issues involved.
While many hope that CBP will modify—or postpone—the new requirements, there are signs that the agency is ramping up sanctions enforcement.
JCK has learned that since the first Russian polished diamond ban was enacted last March, Customs has on a few occasions asked transport services for traceability information for specific rough and polished shipments.
Brad Brooks-Rubin, who has worked in the State Department’s Office of Sanctions Coordination as well as for jewelry groups, says the industry shouldn’t be surprised by the new “country of mining” rule.
“The trade has had way more warning than just about any other industry about what the requirements will be,” he says. “The trade has the technology and the wherewithal to comply with this. This isn’t going away.”
Since September, importers have had to self-certify that diamonds one-half carat and above do not originate from Russia. That requirement will remain, according to the CBP notice.
Importing companies also must contend with President Trump’s new tariffs, including an extra 25% on imports from Canada and Mexico and an additional 10% duty on items from China. (Mexico, Canada, and China are the United States’ top three trading partners.) The Mexican tariff increase was originally scheduled to take effect this week, but on Monday it was postponed for at least a month.
Trump has threatened to increase sanctions against Russia if the war in Ukraine doesn’t end.
(Photo courtesy of U.S. Customs and Border Protection)
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