European Union: Clarifying the impact of the import ban on diamonds

Article 3p of Council Regulation (EU) 2023/2878

In brief

On 18 December 2023, the European Council adopted a twelfth package of restrictive measures against Russia. As expected, and as discussed during our Off the Shelf Podcast "Crystallizing the impact of the proposed EU sanctions on diamonds," a ban on diamonds was introduced in Article 3p of Council Regulation (EU) 2023/2878, the key features of which are discussed in detail below and can be summarized as follows: 


  • 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.

Contact Information
Karen Roberts
Lead Knowledge Lawyer at BakerMcKenzie
Zahra Omar
Lead Knowledge Lawyer at BakerMcKenzie

Copyright © 2024 Baker & McKenzie. All rights reserved. Ownership: This documentation and content (Content) is a proprietary resource owned exclusively by Baker McKenzie (meaning Baker & McKenzie International and its member firms). The Content is protected under international copyright conventions. Use of this Content does not of itself create a contractual relationship, nor any attorney/client relationship, between Baker McKenzie and any person. Non-reliance and exclusion: All Content is for informational purposes only and may not reflect the most current legal and regulatory developments. All summaries of the laws, regulations and practice are subject to change. The Content is not offered as legal or professional advice for any specific matter. It is not intended to be a substitute for reference to (and compliance with) the detailed provisions of applicable laws, rules, regulations or forms. Legal advice should always be sought before taking any action or refraining from taking any action based on any Content. Baker McKenzie and the editors and the contributing authors do not guarantee the accuracy of the Content and expressly disclaim any and all liability to any person in respect of the consequences of anything done or permitted to be done or omitted to be done wholly or partly in reliance upon the whole or any part of the Content. The Content may contain links to external websites and external websites may link to the Content. Baker McKenzie is not responsible for the content or operation of any such external sites and disclaims all liability, howsoever occurring, in respect of the content or operation of any such external websites. Attorney Advertising: This Content may qualify as “Attorney Advertising” requiring notice in some jurisdictions. To the extent that this Content may qualify as Attorney Advertising, PRIOR RESULTS DO NOT GUARANTEE A SIMILAR OUTCOME. Reproduction: Reproduction of reasonable portions of the Content is permitted provided that (i) such reproductions are made available free of charge and for non-commercial purposes, (ii) such reproductions are properly attributed to Baker McKenzie, (iii) the portion of the Content being reproduced is not altered or made available in a manner that modifies the Content or presents the Content being reproduced in a false light and (iv) notice is made to the disclaimers included on the Content. The permission to re-copy does not allow for incorporation of any substantial portion of the Content in any work or publication, whether in hard copy, electronic or any other form or for commercial purposes.