A broader US ban on Russian diamonds went into effect on March 1, but uncertainty remains about key details.
Sanctions on Russian diamonds and diamond jewelry went into effect on March 1 across Group of Seven (G7) nations, expanding the ban to 1-carat and larger polished stones manufactured in a third country from Russian rough. Previously, goods “substantially transformed” (i.e., manufactured) in countries such as India were technically legal in the US. The US and other member countries have released information on how enforcement will work, but many questions remain.
US Customs and Border Protection has ordered importers to use a self-certification statement declaring that the diamonds are not Russian. This is likely a temporary measure while US authorities devise a way to enforce the rules.
The industry is still unsure how the ban will work in both the short and the long term. Dealers have begun sending goods to the US with self-declaration statements, but there is uncertainty about what will happen if customs authorities ask for evidence about a particular shipment and whether the US will add more complex requirements later.
“It’s a little confusing for the trade,” a manufacturing executive said on condition of anonymity. “Everyone is a little skeptical of how to make it work in such a way that…none of the Russian diamonds will infiltrate into the US. But people have now woken up to the fact that this is coming.”
For the rest of this article: https://rapaport.com/analysis/four-questions-the-us-must-answer-on-diamond-sanctions/