The US is implementing sanction regulations that may significantly harm the US diamond trade, Rapaport.com reported this week.
The Rapaport said US Diamond Protocol has three continuous points including that importers and exporters of diamonds into the US must sign a declaration that the diamonds being imported are not sourced from Russian or other US-sanctioned entities.
The second point is that US government agencies that require Source Verification should select and use blockchains of their choice to identify and trace the source of US diamond imports.
The third point is that once diamonds are in the US, no restrictions or compliance requirements will be required. This includes diamonds and diamond jewelry already in the US, as well as any new diamonds imported after sanction regulations are implemented.
Rapaport supports effective Russian sanctions but is firmly opposed to efforts by the Belgium Government and the World Diamond Council to use US sanction regulations to harm US consumers, jewelers, and traders.
Rapaport said Belgium is using their position in the G7 to insist that all diamonds coming into the US go through Belgium.
“This is an outrageous power grab that will increase the cost and limit the flow of diamonds entering the US market,” Rapaport said.
It said the World Diamond Council WDC G7 Diamond Protocol is a terrible document that calls for unnecessary extensive trade compliance regulations that will destroy small to medium size jewelers, restrain US trade by restricting distribution of non-sanctioned diamonds, and outrageously have foreign trade organisations, like Dubai’s DMCC and India’s GJEPC, audit and approve their members’ compliance with US sanctions regulations.
“The US imports over 50% of the world’s polished diamonds. No foreign governments or trade organizations dominated by self-interested foreign companies should manipulate or control US government regulation of our diamond trade,” Rapaport said.