Sanctions Resources

The G7 government-coordinated restrictions have begun on rough and polished diamonds. All G7 governments (United States of America, Canada, France, Germany, Italy, Japan, the United Kingdom and the European Union) have agreed to restrict Russian-origin diamonds of certain sizes from entering the G7, even if they are cut & polished (“substantially transformed”) in a third country before import. The purpose of the sanctions is to prevent the Russian Federation from continuing to use the financial systems of the G7 to fund its unjustified war in Ukraine. Alrosa, the state diamond mining corporation which is partially owned by the government of the Russian Federation, uses the country’s diamonds to raise revenue that directly contributes to the war in Ukraine.

In the U.S., the restriction was implemented by an Executive Order on December 22, 2023 with subsequent determinations by the Office of Foreign Assets Control and guidance from Customs & Border Protection.

Starting March 1, 2024, the importation of any polished diamond 1 carat or higher was restricted only to goods that did not originate in the Russian Federation.  On September 1, 2024, this threshold dropped to 0.5 carats.

Starting September 1, companies importing rough or polished diamonds 0.5 carat or higher must demonstrate that the diamonds were not mined, extracted, or polished in the Russian Federation. OFAC has provided some basic information in FAQs here, here, and here, including the specific harmonized tariff codes affected.

The U.S. government has given required self-certification language for shipments containing diamonds and diamond jewelry in the Customs guidance communication seen here and excerpted below. All diamond imports containing rough or polished diamonds 1.0 carat or higher must file this declaration. CBP is empowered to check for this information upon import into the U.S. and will be inspecting packages of diamonds at the point of importation into the U.S. as usual. 

The self-certification for U.S. import must meet the following criteria: 

• Be provided on official company letterhead in PDF format.
• Contain the statement:

For non-industrial diamonds with a weight of 0.5 carat or greater, effective September 1, 2024:

“I certify that the non-industrial diamonds in this shipment were not mined, extracted, produced, or manufactured wholly or in part in the Russian Federation, notwithstanding whether such diamonds have been substantially transformed into other products outside of the Russian Federation.”

For diamond jewelry and unsorted diamonds, effective March 1, 2024:

“I certify that the diamond jewelry and unsorted diamonds in this shipment are not of Russian Federation origin or were not exported from the Russian Federation.”

Statements regarding origin made in these declarations should be truthful; falsifying information at Customs is a federal offense. Importers can further demonstrate that their diamonds are not of Russian origin using invoice statements, chain of custody demonstration, blockchain tracking, and more.

Yes.  In August 2024, the Department of the Treasury’s Office of Foreign Assets Control (OFAC) issued two General Licenses addressing the issue of pre-import ban diamond stock and finished diamond jewelry (commonly referred to in the industry as “legacy”, “heritage”, or “grandfathered” diamonds and diamond jewelry.) Under General License 103, diamond jewelry that was already physically located outside of the Russian Federation prior to March 1, 2024, and not exported or re-exported from the Russian Federation on or after March 1, 2024, is authorized for importation into the United States.

Under General License 104, polished diamonds that were already physically located outside of the Russian Federation prior to March 1, 2024 (for diamonds 1.0 carat and higher) and prior to September 1, 2024 (for diamonds 0.5 carat and higher) are authorized for importation into the United States only through September 1, 2025.  

An OFAC general license authorizes a particular type of transaction without the need to apply for a license, provided the transactions meet the terms and conditions as described in the general license. (Think of it like a permission slip!) Importers should not need to provide any specific documentation upon importation, but may wish to maintain verification information in line with the self-certification scheme set up by the original indirect importation ban outlined above.

The following information must be available:

• Mining origin
• Names of buyer and seller
• HS codes and description
• Number of parcels in a shipment
• Weight in carat of the diamond(s) if at least one diamond (if multiple diamonds are shipped in a parcel) is of 1.0 carat or above
• Value of the diamonds
• Place of importation, exportation, and route of transportation as applicable depending on the respective G7 country and lifecycle of the diamond(s) prior to importation in a G7 jurisdiction.

Businesses should have available documentation that shows proof the diamonds they are shipping did not originate from the Russian Federation. The types of documents containing the above information required for submission with entry may vary depending upon the requirements of each individual G7 country.

For shipments into the U.S., importers do not need to submit this information directly to U.S. customs, but must have it available in case of further inspection. Examples of documentation include the following non-exhaustive list:

For rough natural diamonds:

• Kimberley Process certificates with single origin (DeBeers DTC mixed origin allowed) for diamonds at or above 0.5 carat
• Kimberley Process certificates with mixed origin accompanied by documentary evidence, proving that no diamonds at or above 0.5 carat in the shipment were mined in Russia

Additional documents proving the above can include:

• Customs declaration form
• Invoice
• Packing list
• Transport documentation, e.g. waybill document
• Evidence from traceability systems

For polished natural diamonds:

• Signed attestation or supplier declaration confirming that none of the diamonds at or above 0.5 carat in the shipment were mined in Russia.

Additional documents proving the above can include:

• Customs declaration form
• Invoice
• Packing list
• Transport documentation, e.g. waybill document
• Laboratory grading report
• Evidence from traceability systems

No. For example, in the E.U., more documentary evidence of where the diamonds do originate is required. Businesses importing diamonds into other G7 countries should be sure to check with relevant customs authorities.

JVC has been providing its members with information and guidance on this topic since February 2022 when Russia first invaded Ukraine. U.S. businesses should be working directly with their suppliers to ensure the suppliers are capable of segregating their goods and providing verifiable confirmation that the goods purchased are not of Russian origin. The fundamentals of this can be built on top of a business’s existing AML program and KYC / vendor identification programs. While you need to receive ongoing confirmation about goods you are purchasing, establishing good vendor policies and procedures is paramount to ensuring you are receiving goods with verifiable origin information.

The G7 technical committee is working on a traceability mechanism for diamonds that is currently being tested. Contemplated in this system is the requirement for rough diamonds to enter the G7 via specific “nodes” for uploading onto a blockchain to ensure source verification. One node is planned for Antwerp, Belgium; additional nodes may be added (for example, a registration point in Canada directly for Canadian diamonds, which are already in the G7.) We don’t yet fully know what this looks like or how expeditiously goods will move from source countries to the node for registration to cutting factories. 

JVC continues to work alongside the jewelry industry and with the U.S. government to clarify the requirements and provide input regarding what is achievable in the market. The U.S. government officials working on these restrictions have been incredibly open to input from the trade, and we will continue to facilitate these discussions on an ongoing basis.

JVC is tracking this information and will continue to distill it for our members. The solutions designated by the G7 are being designed to be multi-country efforts. As changes are announced, we’ll make sure you know about them.

They’re not.  In the various executive orders issued on the topic, diamonds, gold, and jewelry have been lumped together with seafood and alcohol products. Seafood products, it turns out, have many of the same concerns we do; Russian pollock and other fishes were shipped to China and turned into “substantially transformed” fish sticks and other products that were being imported into the U.S. This is now prohibited by the same executive order that prohibits substantially transformed diamonds from entering the U.S. The U.S. is looking at every sector in an attempt to close off funding for the war.

All businesses in the jewelry trade need to be asking suppliers questions, evaluating those responses, keeping records of those responses, and asking questions about the technology their suppliers have/are acquiring.

The G7 is still focused on the traceability mechanism previously outlined in the March 1, 2024 import ban, and the U.S. continues to support that effort through work on a technical working group to achieve agreed-upon principles of traceability as a preferred method of implementation. This includes engaging with key stakeholders, including governments in Africa, to ensure a fair and equitable way forward to keep banned Russian diamonds out of G7 countries. However, JVC has learned that the United States is supporting a delay of implementation adopted by the EU to March 1, 2025, and potentially beyond, to ensure the details can be fully resolved.

Retailers should be speaking directly with their suppliers about how they plan to implement the traceability mechanisms of the G7 restrictions. Retailers should prepare staff to speak about the sizes of diamonds that are restricted from entry into the U.S. and the fact that this is being done so that diamond proceeds do not finance war.

Businesses should follow the steps for a red flag transaction as outlined in their AML programs. If you are a JVC member, please contact us so that we can help you evaluate the transaction. Potential violations can be reported to OFAC using their hotline at https://apps-treas.my.site.com/ofac/s/ofac-hotline or 1-800-540-6322. You may also wish to engage outside counsel.