The London Diamond Bourse has released an open letter addressing the G7 restrictions, which were originally set to come into effect on 1st March 2024.
This development follows an emergency meeting convened by the Council of Management to deliberate on the sanctions aimed at Russian origin diamonds, particularly those polished and loose diamonds above 1 carat.
The London Diamond Bourse has been actively engaged with industry and government bodies to align with the sanctions while ensuring the uninterrupted flow of trade.
However, the lack of clear guidance from the Revenue on compliance with these restrictions has prompted a cautious stance from the Bourse.
Key Concerns and Immediate Actions
The open letter, penned by David Troostwyk, President of the London Diamond Bourse, highlights the organisation’s predicament due to the absence of explicit directions on paperwork and provenance required for Russian origin diamonds.
To safeguard its members and the broader trade community, the Bourse advises against the importation of polished loose diamonds of 1ct and above until definitive guidance is received.
This precautionary measure underscores the Bourse’s commitment to lawful trade practices and the well-being of its members amid regulatory uncertainties.
The letter also serves as a cautionary note to importers within the industry, warning of the potential seizure of assets by the Revenue for non-compliance with the yet unclear guidelines.
Recommended Actions for UK Jewellers
1. Pause Imports: Jewellers should temporarily halt the import of polished loose diamonds of 1ct and above, adhering to the Bourse’s advice, until clear guidelines are established.
2. Stay Informed: It’s crucial for jewellers to stay updated with the latest information from the London Diamond Bourse and regulatory bodies regarding the G7 restrictions and compliance requirements.
3. Review Supply Chains: In light of the focus on Russian origin diamonds, jewellers are urged to review and possibly diversify their supply chains to mitigate risks associated with sourcing and compliance.
4. Engage with Industry Bodies: Collaboration with industry associations and bodies like the London Diamond Bourse can provide jewellers with support, guidance, and advocacy in navigating these changes.
