50
th
ANNUAL REPORT 2015-2016 THE GEM & JEWELLERY EXPORT PROMOTION COUNCIL
46
In the recent past, there has been increase in production
of gem quality synthetic stones. There has also been rise
in cases of instances faced by buyers finding that the
diamonds they had purchased as believing to be Natural
Diamonds were actually discovered later to be Synthetic
Diamonds. In light of the seriousness of such allegations, the
GJEPC saw it as a critical responsibility to study the issue
of undisclosed mixing in more detail and then outline any
actions that may be required to address it. With this in mind,
the Natural Diamond Monitoring Committee (NDMC) was
formed at GJEPC. NDMC consists of representatives from
the GJEPC, BDB, GJF, GIA and other Trade Bodies in the
Gems & Jewellery sector.
Last year was very eventful and the Natural Diamond
Monitoring committee took further strides and continued their
efforts to tackle the issue of undisclosed mixing of synthetic
diamonds along with creating industry awareness. Last year
the NDMC had released the most comprehensive study
ever undertaken regarding synthetic diamonds – the study
spanning 8 countries across 4 continents over a period of
nearly 4 months and incorporating inputs from a wide variety
of players including manufacturers, retailers, equipment
firms, testing laboratories, global Trade Bodies, legal firms,
consultants and industry experts. Based on this study, NDMC
has developed solutions that will ensure fair trade practices
to curb the issue of undisclosed mixing and ensure full and
fair disclosure to the purchaser.
The study was set up to achieve three objectives, namely:
•
Assess the scale of the issue of undisclosed mixing and
identify key issue areas
•
Identify any changes that may be required in governing
frameworks to ensure fair trade practices
•
Develop an action plan for all stakeholders to
implement changes to address current threats
The study had analysed the intricate landscape and
developed apt solutions to safeguard against accidental
or intentional mixing. The solutions have covered four
key solution areas – Regulatory, Commercial, Process
and Technology. Moving ahead the NDMC decided to
concentrate on these solution themes and concentrate their
activities towards each solution individually.
It was observed that one of the burning issues that was
confronting the diamond world was the detection of synthetic
diamonds in a quick, effective & price friendly manner, in
absence of which the industry is susceptible to sale of
undisclosed synthetics as natural diamonds. Hence NDMC
took the initiative to organise a symposium. Following which
GJEPC announced the first-ever “Diamond Detection Expo &
Symposium” (DDES 2015) on 15th & 16th December, 2015
at Bharat Diamond Bourse, Mumbai in affiliation with Bharat
Diamond Bourse.
Safegarding Consumer Confidence
SEGREGATION OF SYNTHETIC DIAMOND FROM
NATURAL DIAMONDS
Standing up to the challenge!
Govt. accepts our demand for Separate
HS Code for Synthetic Diamonds
GJEPC has relentlessly pursued with the Govt. to ensure
greater granularity of HS codes as this was a crucial and
would be a helpful step in tracking the import/export of
Synthetic diamonds.
In 2016 Budget, the government has accepted this sug-
gestion, and now
Synthetic Diamonds falls under the HS Code
of 7104-9010 & other synthetic stones in 7104-9090 establish-
ing a clear differentiation.
Grievance Redressal Committee
GJEPC and BDB have set up a joint grievance redressal
committee to hear complaints of mixing of synthetics with
natural diamonds. This committee intend to build a strong
mechanism to enforce our industry values so that there is
transparency and an increasing trustworthiness amongst
all.
•
Members are encouraged to report cases of
undisclosed mixing
•
The committee follows a democratic approach
and hears all parties involved before coming to a
conclusion
Action Taken:
In 3 cases the committee has found parties guilty of
mixing
•
The complaints were then forwarded to BDB who took
appropriate action
•
One of the banned parties had sued BDB for wrongful
barring of their entry
•
However the court ruled in favour of BDB and has
dismissed his petition for relief
In the recent past, there has been increas in production of gem quality synthetic stones. There has
also been rise in cases of instances faced by buyers finding that the diamonds they had purchased
as believing to be Natural Diamonds were actually discovered later to be Synthetic Diamonds. In light
of the seriousness of such allegations, the GJEPC saw it as a critical responsibility to study the issue
of undisclosed mixing in more detail and then outline any actions that may be required to address it.
With this in mind, the Natural Diamond Monitoring Committee (NDMC) was formed by GJEPC. NDMC
consists of representatives fr th GJEPC, BDB, GJF, GIA and other Trade Bodies in the Gems &
Jewellery sector.
