Dear Friends,
As we all know, 2024 was one of the most challenging years for the diamond industry in the past 30 to 40 years. Excess supply, low Chinese demand and increased sales of synthetic diamonds have all made a significant dent in the natural diamond business.
To remedy this, major producers are reducing rough supply, and De Beers has cut back on sights. Also, industry-wide marketing campaigns, such as those by De Beers and the Natural Diamond Council, are helping to grow demand. But to make a major impact and inspire renewed desire for natural diamonds, this must be a sustained effort over several years.
The WFDB is also actively working on marketing efforts, with our Moments campaign on social media and a planned video campaign to be launched later in the year. We are targeting a younger dynamic in the United States, India and Europe, and we’ll be working with the Shanghai Diamond Exchange to boost demand in China.
We all recognize that recovery will be gradual, but we hope to see a more positive trend in 2025.
Now I would like to give you an update on new U.S. customs requirements for diamond imports. As of April 2025, there will be mandatory reporting of both the ‘Country of Mining Origin’ and the ‘Country of Origin’, which must be submitted via a Signed Declaration. Importers will still need to provide a self-certification statement confirming the absence of Russian diamonds greater than 0.50ct in their shipments.
The new requirements will apply to all diamonds and diamond-mounted jewellery, regardless of size.
Several critical issues remain unanswered, especially concerning polished diamonds. This presents a challenge for businesses, particularly for diamonds acquired or imported prior to the implementation of these new requirements. There are no allowances regarding the handling of existing diamond stocks (“grandfather goods”) or for diamonds with unverifiable mining origins.
We will continue to monitor developments and provide updates as additional guidance becomes available.
Warm regards,
Yoram Dvash
