Clearing precious stones through customs is one of the most sensitive and complex processes in international trade. These goods include various types of precious stones such as diamonds, emeralds, rubies, sapphires, and other ornamental stones. Due to their high monetary value and economic significance, strict regulations must be observed during their import and export. Precious stones are categorized as special goods, which require high accuracy and transparency in customs declaration and clearance processes.
Applications of Precious Stones
Precious stones have diverse applications, the most important being in the jewelry industry. Stones like diamonds, emeralds, rubies, and sapphires are used to create luxurious pieces such as rings, necklaces, bracelets, and earrings. Due to their beauty and value, these stones have a special place in the jewelry market. Additionally, some precious stones like diamonds, because of their unique physical properties such as extreme hardness, are also used in other industries like precision cutting tools and drilling. Furthermore, precious stones are considered valuable assets in financial markets and are sometimes traded as long-term investments or stores of value. Semi-precious stones like pearls and amber are also used in jewelry and, in some cases, as medicinal or therapeutic materials.
Key Points in the Customs Clearance of Precious Stones
The customs clearance of precious stones, given their high value and sensitivity, requires adherence to specific procedures and documentation. This process must be carried out with great attention to detail to ensure compliance with both domestic and international regulations and to prevent fraud and misuse. Below are some key points to consider:
1. Accurate Customs Declaration
The first and most important step in the clearance process for precious stones is completing and submitting an accurate customs declaration. This declaration must include all details regarding the type, weight, quality, and value of the imported or exported stones. Proper valuation is crucial; undervaluation may result in heavy fines or even seizure of the goods. The information in the customs declaration must be consistent with other documents such as the invoice and the certificate of origin.
2. Import and Export Permits
For importing or exporting precious stones, necessary permits must be obtained from relevant authorities. In Iran, a permit from the Ministry of Industry, Mine, and Trade is required. Depending on the type of stone, other permits may also be needed. For example, for importing specific diamonds or valuable emeralds, in addition to the industry permit, international certificates like the Kimberley Process Certification are also mandatory.
3. Certificate of Origin
The certificate of origin is a key document in the clearance process of precious stones. It certifies from which country and under what conditions the stones were mined and processed. This certificate serves as a guarantee of the stones' authenticity and helps in their accurate valuation. Failure to provide the correct certificate of origin may lead to issues in the clearance process.
4. Certificate of Authenticity
To prevent the importation of fake and counterfeit stones, the authenticity of precious stones must be verified by recognized international bodies. For valuable diamonds and emeralds, authenticity certificates issued by reputable laboratories are commonly used. These certificates specify the exact details of the stone, including type, purity, weight, and other key characteristics, and serve as essential documents for customs clearance.
5. Quality Standards
Precious stones must also undergo quality checks. Any defects or quality issues should be noted in the customs declaration to ensure precise valuation. The quality assessment of these stones is usually carried out by experienced customs experts or accredited laboratories. International quality standards for precious stones include assessments of color, clarity, cut, and weight.
Applications of Precious Stones
Precious stones are primarily used in jewelry making. Diamonds, emeralds, rubies, and sapphires are among the stones used to produce a wide range of valuable rings, necklaces, earrings, and bracelets. Due to their beauty and high value, these stones hold a special place in the jewelry industry. Additionally, diamonds are used in various industries like cutting and drilling due to their exceptional hardness.
Important Points in the Customs Clearance of Precious Stones
The customs clearance of precious stones requires high precision, and each type must be cleared under its specific tariff code. Below are some examples of these stones along with their respective HS codes:
Diamond (Diamond)
Diamonds, as some of the most valuable and hardest stones globally, are used both in jewelry and other industries.
HS Code for Unworked (Non-Industrial) Diamonds: 7102.10
HS Code for Industrial Unworked Diamonds: 7102.21
HS Code for Processed Diamonds: 7102.31
Emerald (Emerald)
Emeralds, known for their beautiful green color, are used in making fine jewelry.
HS Code for Raw or Uncut Emeralds: 7103.10
HS Code for Processed Emeralds: 7103.91
Ruby (Ruby)
Rubies, with their striking red color, are widely used in luxury jewelry production.
HS Code for Raw or Uncut Rubies: 7103.10
HS Code for Processed Rubies: 7103.91
Sapphire (Sapphire)
Sapphires, with their distinctive blue color, are popular in the jewelry industry.
HS Code for Raw or Uncut Sapphires: 7103.10
HS Code for Processed Sapphires: 7103.91
Turquoise (Turquoise)
Turquoise, often seen in shades of blue and green, is one of the most widely used ornamental stones in both traditional and modern jewelry.
HS Code for Raw Turquoise: 7103.10
HS Code for Cut Turquoise: 7103.91
Topaz (Topaz)
Topaz, due to its color variety, is highly favored in jewelry making.
HS Code for Raw or Uncut Topaz: 7103.10
HS Code for Processed Topaz: 7103.91
Agate (Agate)
Agate, known for its patterns and variety of colors, is one of the most popular semi-precious stones.
HS Code for Raw or Uncut Agate: 7103.10
HS Code for Processed Agate: 7103.91
Pearl (Pearl)
Pearls are widely used in jewelry due to their natural luster.
HS Code for Natural or Cultured Pearls: 7101.10
HS Code for Processed Pearls: 7101.21
Amber (Amber)
Amber is an organic material formed from fossilized tree resin and is used in jewelry making.
HS Code for Raw or Natural Amber: 7103.10
HS Code for Processed Amber: 7103.91
Volume of Precious Stone Imports and Exports to Iran
As one of the major jewelry markets in the Middle East, Iran meets part of its demand for precious stones through imports. Countries like India, Russia, South Africa, and Brazil are among the main exporters of precious stones to Iran. The volume of precious stone imports into Iran varies based on market demand and global price fluctuations; however, Iran imports millions of dollars worth of precious stones, particularly diamonds and emeralds, each year.
On the other hand, jewelry crafted with these stones is exported to regional countries, especially Gulf countries such as the UAE, Qatar, and Kuwait, as well as European countries. These exports make a significant contribution to the Iranian economy, as Iranian jewelry is well-received in foreign markets for its unique designs and high-quality precious stones.
Global Precious Stone Market
The global precious stone market is vast, with an annual turnover of billions of dollars. Countries that are major producers and exporters of these stones hold a large share of the market. As precious stones are considered both luxury and investment commodities, demand for them is consistently high. Diamonds, emeralds, rubies, and sapphires are among the most important precious stones traded globally each year.
Leading Exporters of Precious Stones Globally
Russia: One of the largest diamond producers globally, Russia has a significant share of the world’s diamond production thanks to its rich mines.
South Africa: A major global producer of diamonds and emeralds, South Africa is recognized as a key hub for exporting precious stones.
India: India is one of the global centers for diamond cutting and processing, with a significant portion of precious stones being exported after processing. The country is also an exporter of jewelry set with precious stones.
Brazil: Brazil is another important producer of valuable stones such as emeralds and rubies, with exports of these stones forming a major part of its foreign trade.
Major Importers of Precious Stones Globally
United States: The United States is the largest importer of precious stones and jewelry worldwide. The vast jewelry market and investments in precious stones in the country have resulted in the US having a high share of these imports.
China: China is another significant importer of precious stones. The growth of the luxury and jewelry market in the country has created substantial demand for imported precious stones.
United Arab Emirates: Dubai, as the commercial center of the Middle East, is one of the largest importers and distributors of precious stones and jewelry globally. The jewelry market in this country is highly dynamic and active.
Documents Required for Customs Clearance of Precious Stones
Customs clearance of precious stones requires the submission of accurate documentation due to the high value of these goods and the related legal sensitivities. These documents are used to verify authenticity, assess value, and determine the origin of imported stones. They must be properly prepared and submitted to ensure a smooth clearance process.
1. Commercial Invoice
The commercial invoice is one of the most important documents required for clearing precious stones. This document includes details such as the type of stone, weight, quantity, value, and sales terms. All information in the invoice must be precise and consistent with the shipment to prevent discrepancies and issues during customs procedures.
2. Certificate of Origin
The certificate of origin is a vital document that determines the country of origin of the imported stones. This certificate shows where the stones were mined and is often used to determine customs tariffs and eligibility for trade agreement benefits. It is certified by the chamber of commerce or relevant authorities in the exporting country.
3. Certificate of Authenticity
The certificate of authenticity is one of the most crucial documents required for customs clearance of precious stones. This certificate, issued by reputable international authorities or specialized laboratories, confirms that the imported stone matches the claimed type, purity, weight, and other attributes. The authenticity certificate prevents the entry of counterfeit stones and is essential for verifying the validity of the goods.
4. Quality Certificate
The quality certificate confirms that the imported stones meet international quality standards. This certificate is also issued by recognized laboratories and examines the physical and chemical characteristics of the stones. Having this document is essential for transparency during customs procedures and to ensure the quality of the goods.
5. Customs Declaration
The customs declaration is a document that must be completed accurately, including all relevant information about the type, weight, quantity, and value of the precious stones. This information must be entirely accurate and consistent with other documents. Any errors or discrepancies in the declaration may lead to delays in clearance or legal issues.
6. Import License
For importing precious stones, import licenses from the Ministry of Industry, Mine, and Trade or other government bodies may be required. These licenses vary depending on the type of stone and the country of origin and are essential for legal importation.
7. Kimberley Process Certificate
If you intend to import rough diamonds, the Kimberley Process Certificate is a mandatory requirement. This certificate ensures that the diamonds were extracted from legitimate sources and aims to prevent the trade of conflict diamonds. Without this certificate, importing rough diamonds is impossible.
8. Bill of Lading
The bill of lading is a document that specifies the details of the shipment and transportation. It is issued by the shipping company and shows how and under what conditions the stones were transported to the destination. Providing this document is necessary for collecting the goods from customs and completing clearance procedures.
9. Packing List
The packing list includes detailed information on the shipment's packages, including quantity, type of packaging, and details of the goods in each package. This list helps customs verify that the imported goods match the submitted documents and ensures the accuracy of the shipment contents.
10. Health and Safety Permit (If Required)
In some cases, where precious stones may contain specific materials or originate from countries with particular health regulations, health and safety permits may be needed. These permits ensure that the goods are safe and compliant during transportation and clearance.
11. Insurance Documents
The insurance policy is also an essential document for customs clearance. It shows that the goods were insured during transport, and in the event of any incident, potential damages are covered. Having valid insurance is particularly important for high-value shipments such as precious stones.
12. Environmental Clearance
In cases where the imported stones may be subject to specific environmental regulations, clearance from environmental authorities is required. This permit indicates that the importation of precious stones complies with domestic and international environmental regulations.
Special Services by Saba Customs Brokerage for Precious Stone Clearance
Clearing precious stones requires great attention to detail due to the high value of these items and the associated legal and financial sensitivities. Given the complexities of customs and international regulations, services offered to facilitate this process must be comprehensive and specialized. One of the professional agencies in this field, utilizing an experienced team, has managed to provide complete services for the customs clearance of precious stones. Some of these services include:
1. Specialized Pre-Import Consultation: This agency offers precise consultation to importers and exporters, helping them understand all customs regulations and make the best decisions regarding the import or export of precious stones.
2. Preparation and Review of Necessary Documents: By preparing all necessary documents such as certificates of authenticity, certificates of origin, and other related documents, the clearance process is expedited and completed without issues. Attention to document preparation ensures that all legal steps are followed correctly, minimizing potential problems.
3. Tracking and Completing Customs Procedures: The specialist team of this agency tracks and completes all administrative and operational stages of customs clearance. This ensures that there are no delays in the clearance process, and the shipment is released from customs in the shortest possible time.
4. Compliance with International Standards: Considering the sensitivities in trading precious stones, this agency ensures full compliance with international laws and regulations, such as the Kimberley Convention and other trade standards. This approach minimizes the risk of legal and financial issues.
5. Reduction of Customs Costs: Utilizing experience and a thorough understanding of customs processes, this agency can help reduce your costs. Optimizing clearance procedures and using appropriate solutions minimizes additional expenses.
By utilizing the professional services of this agency, importers and exporters can confidently complete the customs clearance process for their precious stones and overcome all customs obstacles and challenges.
Contact our experts for more information.
