As we enter the most critical season for sales in our industry many of our members, both wholesale and retail are earnestly searching for business strategies that will help them cope with an alarmingly depressed retail climate. In addition to the uncertain economic climate, we are now facing new regulatory developments which will have to be addressed in order to insure that the industry is doing everything it can to protect the integrity of product and remain in compliance with new legislative mandates.

Chief among these new regulations was the enactment of the Tom Lantos Block Burma JADE Act (TLBBJA), which bans the import of Burmese-origin rubies and jadeite into the US and requires the implementation of a verifiable system of supply chain oversight that ensures the supply of rubies and jadeite entering the US is not of Burmese origin.

The AGTA, in conjunction with the Jeweler’s Vigilance Committee (JVC) and the Jewelers of America (JA) have formed a task force to facilitate the distribution of information regarding the industry’s responsibility under the TLBBJA and to coordinate with the various government agencies to implement a regulatory framework that will allow the free commerce of non-Burmese gemstones and to prevent the entry of Burmese goods.

This Task Force is currently working with its respective constituencies as well as other national and international stakeholders (New York Gem Dealers Association, International Colored Gemstone Association, CIBJO and others) to provide input on the components of such a framework.

Currently, the US government has introduced new tariff codes that specifically address the importation of non-Burmese goods. These codes, which constitute a certification on the part of both exporting countries and importing companies that the items being imported are not of Burmese origin. Copies of the new harmonized tariff schedule (HTS) codes are available on our website (www.agta.org) and on the JVC website at www.jvclegal.org.

The legislation additionally requires the use of exporter and importer certifications demonstrating that the goods are not of Burmese origin. Copies of both documents can be obtained from the websites noted above.

The ongoing efforts of the Task Force will, in conjunction with the appropriate federal agencies, revolve around the development and implementation of procedures that satisfy the additional requirements contained in the law. These include a system of “verifiable controls” within the exporting countries that ensure that goods, or jewelry containing them, have not originated from Burma. Other possible components of the framework will almost certainly contain provisions for government-validated certificates of origin, or government validated warranties, attesting that the items in question did not originate from Burma, and may include the introduction of risk based quality control programs that enlist the use of qualified testing facilities (gemological laboratories) in both the producing countries and here in the United States. As the specifics of this framework evolve, the AGTA will, along with our industry partners, communicate those developments to the trade.

Ruby, even Burma ruby, is not illegal. New imports of Burma ruby are.

Two very important considerations to keep in mind as address the effects of this new legislation are as follows. Ruby is, and will always be, the most important red gemstone in our business. It has historical significance beyond its spectacular beauty. We must be very careful as we develop strategies to comply with the legislation that we do not destroy the market by restricting or eliminating the supply of non-Burmese ruby supplies into our country. Unquestionably, the search for new sources and the production from existing alternate supply sources will escalate.

In addition, current inventories, including rubies originating from Burma but imported into the United States prior to September 27, 2008, are not subject to the legislative provisions are perfectly legitimate to trade. Currently, there is no doubt a sufficient amount of ruby, both of Burmese origin and from other source countries that can satisfy demand in the near future. Both wholesale dealers and retail jewelers can be comfortable and confident in the commerce of these goods.

The AGTA will continue to work diligently with its trade partners to ensure that the products they sell are in full compliance with the laws governing them and that they never loose that unique appeal that has captured people’s imagination since the beginning of time.