We need your help to ensure that new US government regulations do not severely harm the US diamond and jewelry trade. To date 1,460 members of the trade have signed on to the Rapaport US Diamond Protocol (USDP). Please join us.
The Rapaport Group strongly supports honest, effective, and efficient US sanctions against Russian diamonds and other diamond sources that violate human rights, such as Zimbabwe. However, we are deeply concerned that efforts by the G7 group and US regulations in support of President Biden’s executive order of December 22, 2023, will harm our trade.
If improperly implemented compliance regulations will force small companies out of business, reduce fair market competition, restrict US access to non-sanctioned diamonds and restrain US trade.
The key point is that effective US sanction regulations and enforcement should start and stop at the border. Once polished diamonds are in the US there should not be any sanction compliance requirements. There should not be any restrictions or reporting requirements for diamond trading within the US.
Another important factor is the President’s executive order’s requirement that “The Secretary of Homeland Security, with the concurrence of the Secretary of the Treasury, shall prescribe rules and regulations to collect, including through an authorized electronic data interchange system.”
We are asking for your urgent support for the Rapaport US Diamond Protocol. It places the burden of government regulation and enforcement on US government agencies such as US customs and not on US businesses or trade organizations.
The matter is urgent as the G7 calls for “phased restrictions on the import of Russian diamonds processed in third countries targeting March 1, 2024.” Furthermore, the EU states “as of 1 September 2024, the ban will be expanded to include lab-grown diamonds, jewellery, and watches containing diamonds.” The Jewelers Vigilance Committee (JVC) referring to the OFAC Feb. 8 determination, states “Specifically, this determination outlines that as of March 1, 2024, diamonds 1.0 carat and higher of Russian origin are banned from entering the U.S., regardless of where they are cut & polished.”
I urge you to support the Rapaport US Diamond Protocol by completing the form on this page.
We believe the best way forward is to present the US Diamond Protocol to US regulators and congressional representatives and work with them to ensure honest, effective, and efficient US regulations that restrict the flow of sanctioned Russian diamonds into the US without harming our trade.
Let’s work together to protect our trade
October 31, 2023
All diamonds imported into the United States will require the following declarative statement by the importer and exporter:
“To the best of my knowledge the diamonds being imported have not been sourced from any US sanctioned entity.”
Note: “sourced” diamonds include diamonds purchased from a sanctioned entity that have been substantially transformed by non-sanctioned entities. This includes diamonds purchased from Alrosa and manufactured outside of Russia.
US Customs or another designated government authority may maintain a list of companies allowed to export or import diamonds into the US.
In the event the US government wishes to implement a tracing capability for the import of diamonds into the US, the following protocols should be implemented:
All diamonds imported into the US shall have a unique US Blockchain Identification Number (USBIN) that links to the following information related to the import: name of blockchain; name of mining company; name of diamond manufacturer; import carat weight; import US$ value; invoice trail of diamonds from mine to importer, listing the names of all companies that have transacted the diamonds.
The USBIN must be prominently displayed in a clear tamper–proof sealed bag containing the diamonds. For the purpose of import, the blockchain information will be restricted to government auditing entities.
All diamonds already in the US may be entered into a government–approved blockchain and assigned a USBIN by the company exporting the diamonds from the US. Such diamonds may be reimported into the US using the USBIN.
It is the responsibility of US government designated entities such as US Customs and/or Office of Foreign Asset Control to audit and approve acceptable diamond blockchains, as well as to designate entities that are allowed or not allowed to be included in the USBIN supply chain.
Once polished diamonds are in the US, there are no restrictions on their trade or statements required on any invoices.
Other countries, such as members of the G7, may or may not accept the US Diamond Protocol and US-USBIN for the importation of diamonds into their country.