Diamond cos tread on rule minefield; face compliance burden under new sanctions regime
diamond houses in India were alerted over the weekend that missing paper trails and sloppy records would land them in trouble under the new sanctions regime that began on March 1 to block Russian gems from the affluent western markets.
The discreet, quaint world of diamonds, where close-knit jewellers and diamantaires cut deals in old-fashioned ways, is scanning a new, unfamiliar compliance mechanism that could change the way they have been doing business for ages.
If local firms, which cut and polish eight out of 10 diamonds mined in the world, fail to generate and safekeep documentary evidence that the rough stones and jewellery did not originate in Russia, they could come under serious scrutiny. Cautioning them about the pitfalls, the apex trade body has circulated the various guidelines and formats of self-declarations that diamond firms shipping to the US and EU must share with their buyers to avoid trouble.
Advising jewellers to «remain in close coordination with buyer/importer in G7 nations/EU», the apex trade body, the Gem & Jewellery Export Promotion Council (GJEPC) which has over 7,500 members, said it was «imperative that exporters maintain meticulous records of all documents of import, purchase etc provided by sellers as evidence against declaration of compliance.» This is essential to safeguard against any potential future scrutiny and audit, said a GJEPC communique on Saturday evening.
According to Vipulbhai Shah, chairman of GJEPC, «Over the next few weeks we hope to have an idea of how things
