Industry Observation: Policy Compass – In-depth Interpretation of New Regulations in the Gemstone Industry 2024 and Future Outlook
In 2024, the global gemstone and jewelry industry is undergoing a profound transformation driven by policy regulations. From origin traceability to consumer rights protection, and sustainable development, governments and international organizations worldwide are, with unprecedented vigor, reshaping the ecosystem of this ancient industry. As an industry news editor for 'Yujian AI', we have conducted an in-depth analysis of the latest policy trends, aiming to provide forward-looking insights for industry participants.
China: Emphasis on Standardization and Internationalization
As one of the world's largest jade consumption markets, China's policy movements have a crucial impact on the global industry. In March 2024, the State Administration for Market Regulation issued the revised 'Jewelry and Jade Identification Standard' (GB/T 16552-2024), which will be officially implemented in the second half of this year. The new standard further refines the identification requirements for core categories such as Hetian jade and jadeite, especially for the definition of 'treatment', explicitly stipulating the disclosure obligations for various treatment methods. Mr. Shi Hongyue, Vice President and Secretary-General of the Gem & Jewelry Association of China (GAC), stated in an interview: “The introduction of the new standard aims to enhance the transparency and credibility of China's jewelry and jade market, align with advanced international standards, and provide more reliable purchasing guarantees for consumers.”
In addition, the General Administration of Customs has recently strengthened supervision over imported jewelry and jade, particularly intensifying inspections of origin certificates and customs declarations. According to statistics, in the first quarter of this year, cases of returned or补税 (supplementary tax payment) for jewelry and jade due to non-conforming origin certificates increased by 15% year-on-year, mainly concentrated in high-value categories such as Burmese jadeite and Colombian emeralds. This measure aims to combat smuggling and illegal trade, maintaining a fair market environment.
EU: Sustainable Development and Supply Chain Transparency
The EU has always been at the forefront of policies regarding sustainable development and supply chain transparency. In May 2024, the European Commission published the final text of the 'Corporate Sustainability Due Diligence Directive' (CSDDD), which is expected to be gradually implemented over the next two years. This directive requires large companies operating in the EU, including jewelry retailers and manufacturers, to conduct due diligence on human rights and environmental risks throughout their global supply chains. This means that from mines to retail terminals, jewelry companies need to comprehensively review and disclose the origin, mining methods, labor conditions, and other aspects of their products.
Ari Epstein, CEO of the Antwerp World Diamond Centre (AWDC), emphasized: “CSDDD will fundamentally change the operating model of the European jewelry industry. Companies must invest more resources to ensure the compliance of their supply chains. This will push the entire industry towards a more responsible and sustainable direction.” According to AWDC predictions, within the next five years, at least 30% of EU jewelry companies will upgrade their supply chain management systems to meet the new regulatory requirements.
US: Consumer Protection and Information Disclosure
The U.S. Federal Trade Commission (FTC) continues to exert efforts in consumer protection. In April 2024, the FTC issued its latest guidance on the labeling of 'laboratory-grown diamonds', requiring businesses to clearly and explicitly inform consumers of their non-natural origin when selling such products, avoiding any potentially misleading advertising. This initiative aims to address the confusion between 'natural diamonds' and 'laboratory-grown diamonds' in the market in recent years, protecting consumers' right to know.
Sarah Chen, a market analyst at the Gemological Institute of America (GIA), noted: “The FTC's guidance is a timely response to market changes. With the maturity of laboratory-grown diamond technology and the reduction in costs, its market share is rapidly growing. Standardized labeling helps build consumer trust and promotes the healthy development of both markets.” It is estimated that by 2025, the market share of laboratory-grown diamonds in the U.S. will reach approximately 15% of total jewelry sales.
Future Outlook: Challenges and Opportunities Coexist
In summary, the policy regulations for the jewelry and gemstone industry in 2024 exhibit several notable characteristics: first, tightening global regulation, especially concerning origin traceability, disclosure of treatments, and sustainable development; second, technology empowering regulation, with increasing application of blockchain, big data, and other technologies in supply chain management and anti-counterfeiting traceability; third, awakening consumer awareness, with growing demand for product transparency and ethical sourcing.
These policies undoubtedly bring new challenges to the industry, such as increased compliance costs and complex supply chain management. However, challenges are accompanied by opportunities. Enterprises that can actively adapt to new regulations, embrace transparency and sustainable development, will stand out in the fierce market competition, winning the favor of consumers and investors. As Gaetano Cavalieri, President of the World Jewellery Confederation (CIBJO), stated: “Policy regulations are the cornerstone of industry development. Only under a sound regulatory framework can the jewelry and gemstone industry achieve high-quality, sustainable prosperity.”