• As of 1 January 2024, there will be a direct import ban on diamonds and products incorporating diamonds originating in Russia or exported from Russia. The volume of similar imports amounted to EUR 1,364,786,243 in 2022. 
• A phased indirect import ban will commence from 1 March 2024 on specified goods (e.g., articles of jewelry, watches) when processed in a third country where these consist of or incorporate diamonds originating in Russia or exported from Russia. The volume of similar imports amounted to EUR 22,185,123,407 in 2022. 
• Importers are now required to provide evidence of the country of origin of the diamonds or products incorporating diamonds used as inputs for the processing of the products in a third country.

In addition to Russia-free steel and gold, through this new import ban, companies active in the consumer goods and retail industry are expected to remove any Russian diamonds from their supply chain. Combined, these requirements reveal the need for companies to, first and foremost, secure their supply chains as soon as possible to avoid bottlenecks and, second, optimize their supply chains to enable forward-thinking actors to gain a competitive advantage in an increasingly complex regulatory landscape. This is, indeed, only the beginning. 

Recommended actions

We recommend importers to:

• First, secure their existing supply chains by:
  • Reviewing their import data to flag imports of products classified in any of the commodity codes listed in Annex XXXVIIIA of Council Regulation (EU) 2023/2878, regardless of their non-preferential origin
  • Reviewing the classification of the targeted items in the Combined Nomenclature, considering any relevant legal or explanatory notes, Regulations, as well as Binding Tariff Information
  • Prioritizing the review of the targeted items against the prohibitions and requirements imposed by Article 3p of the Regulation, considering the phased implementation of the indirect import ban and the risk profile of the country of origin
  • Engaging in a critical review of the country of non-preferential origin declared for such goods
  • Engaging with their supply chain to collect information about the countries involved in the processing of any diamonds and of any articles incorporating diamonds
• Second, optimize their supply chains and hence develop their competitive advantage by setting up an efficient, fluid, yet robust Track & Trace process considering any relevant risks and opportunities to limit as much as possible the time-and-cost-to-market while avoiding any unintentional breach.

For a more in-depth discussion on this issue, see the detailed alert here.