Separate HS Codes to be assigned for natural and artificial diamonds

The ministry of commerce has decided to separate the Harmonized System Codes (HS codes) for lab grown and natural diamonds, respectively. This move is on the wake of the recent incidents of lab-grown diamonds being mixed in the parcels of natural diamonds. The Directorate General of Foreign Trade (DGFT) has decided to call a meeting with GJEPC on January 13th to finalize on this issue.

Currently, the trade for natural and lab-grown diamonds is done through the same HS Code. The DGFT is responsible for assigning the HS Codes to different objects.

According to diamond industry insiders, the sale of lab-grown diamonds is quite rampant in the domestic market, too. It was in the 1990s that the lab-grown diamonds started surfacing in the consumer market. Due to the ever-evolving technology, the difference between natural and lab-grown diamond is diminishing to the naked eye. A consumer can know the difference only by going to a laboratory.

Pankaj Parekh, Vice Chairman of GJEPC said, "Due to the same HS Codes being used for natural and lab-grown diamonds, there have been cases of lab-grown diamonds being exported overseas in the name of naturals. This is raising a big question on India's trust value. If the HS Codes are different then such incidences can be barred easily."