The president of the World Federation of Diamond Bourses, Yoram Dvash, announced that starting in April, U.S. customs will require the reporting of diamonds’ country of mining origin and details of the country of origin. This mandatory information must be submitted through a signed declaration.
Importers will also need to provide a self-certification statement confirming that their shipments do not contain Russian diamonds larger than 0.50 ct.
These new requirements apply to all diamonds and diamond-mounted jewelry, regardless of size.
However, several critical issues remain unresolved, particularly concerning polished diamonds. This creates challenges for businesses, especially for diamonds acquired or imported before the new regulations take effect.
No provisions are in place for the handling of existing diamond stocks, often referred to as “grandfather goods,” or diamonds with unverifiable mining origins.
“We will continue to monitor developments and provide updates as additional guidance becomes available,” Dvash said.
On the state of the natural diamond market, Dvash described 2024 as one of the most difficult years in the past 30 to 40 years for the industry.
Contributing factors include an oversupply of diamonds, weak demand from China, and rising sales of synthetic diamonds.
In response, major diamond producers have been reducing the supply of rough diamonds. Industry-wide marketing campaigns, such as those by De Beers and the Natural Diamond Council, are also working to stimulate demand.
Dvash emphasized that these efforts must be sustained over several years to ensure a full market recovery.
The bourse itself is also investing in marketing initiatives, particularly targeting younger consumers in the U.S., India, and Europe.
Furthermore, the bourse is collaborating with the Shanghai Diamond Exchange to boost demand for natural diamonds in China.
“We all recognize that recovery will be gradual, but we hope to see a more positive trend in 2025,” Dvash concluded.
