Notice

Guidance on third country processed Russian diamonds measures

Updated 1 September 2024

This section explains the scope of the measures related to relevant Russian diamonds processed in third countries only, and the evidence traders need to provide to demonstrate compliance. It does not discuss other prohibitions (including other measures related to Russian diamonds). See the statutory guidance on Russia sanctions for this. 

In response to Russia’s invasion of Ukraine, the UK government has imposed a range of sanctions measures, including trade, financial, transport and other sanctions, under The Russia (Sanctions) (EU Exit) Regulations 2019 (“the Russia Regulations”). The sanctions are aimed at encouraging Russia to cease actions which destabilise Ukraine, or undermine or threaten the territorial integrity, sovereignty, or independence of Ukraine. 

The Russia (Sanctions (EU Exit) (Amendment) Regulations 2024 (“the 2024 Regulations”) amended the Russia Regulations and introduced a prohibition on the import of certain Russian diamonds processed in a third country or multiple third countries. This built on measures banning the direct import of Russian origin diamonds and diamond jewellery, which came into effect on 1 January 2024. The ban on third country processed Russian diamonds is set out in regulations 46Z16Q and 46Z16R, inserted as part of Chapter 4JC into Part 5 of the Russia Regulations by the 2024 Regulations. Third country processing can be a means of concealing the Russian origin of diamonds, and this measure is targeted at reducing circumvention of sanctions on Russian diamonds. 

The prohibition on the import of Russian diamonds processed in a third country was introduced, and came into effect, on 1 March 2024 for relevant diamonds equal to or larger than 1 carat in weight (0.2 grams or equivalent). The prohibition applies to relevant diamonds equal to or larger than 0.5 carats (0.1 grams or equivalent) from 1 September 2024. 

1. Explanation of regulations 

For the purpose of this sanction, a relevant processed diamond is defined in regulation 46Z16Q of Chapter 4JC of the Russia Regulations. The HS codes for the relevant products are set out at the end of this guidance. 

The Regulations prohibit the import into the UK of any diamond which meets all of the following criteria: 

• falls within commodity codes 7102 10, 7102 39, ex 7102 31 “non-industrial diamonds, simply sawn, cleaved or bruted”
• originates in Russia
• has been “altered, transformed in any way, or subjected to any other type of operation or process” in a third country. “Third country” means any country that is not the UK, the Isle of Man or Russia (see regulation 46Z16Q)
• is equal to or larger than 1 carat (0.2 grams, or equivalent) from 1 March 2024, or is equal to or larger than 0.5 carats (0.1 grams, or equivalent) from 1 September 2024 

The following scenarios provide examples of how these rules may be applied in practice (where Country X and Country Y are countries that are not the UK, the Isle of Man, or Russia): 

1.1 Scenario 1 

A diamond that is a good listed in regulation 46Z16Q of Chapter 4JC when it leaves Russia is then processed in a third country into another good listed in regulation 46Z16Q. Importing this product into the UK is prohibited. 

For example, non-industrial rough diamonds (HS 7102 31) of Russian origin are exported from Russia and enter Country X. Here they are transformed into polished diamonds (HS 7102 39) and are now of Country X’s origin before being imported into the UK as diamonds larger than or equal to 1 carat, or equivalent, from 1 March 2024; or 0.5 carats, or equivalent, from 1 September 2024.  

The import in this example would be prohibited.  

1.2 Scenario 2 

A diamond of Russian origin that is a good listed in regulation 46Z16Q when it leaves Russia then undergoes multiple stages of processing in one or more third countries, such that it loses its Russian origin but remains a good listed in regulation 46Z16Q. Importing the product into the UK is prohibited because it is a regulation 46Z16Q good that has been of Russian origin at some point during its lifespan. 

For example, non-industrial rough diamonds (HS 7102 31) of Russian origin are exported from Russia and enter Country X. Here, they are transformed into jewellery incorporating diamonds (ex 7113), such that they are now of Country X origin. These enter Country Y, where they undergo processing removing them from jewellery turning them back into loose polished diamonds (HS 7102 39), before being imported into the UK. These loose polished stones are each larger than or equal to 1 carat, or equivalent, from 1 March 2024; or 0.5 carats, or equivalent, from 1 September 2024. 

The import in this example would be prohibited. 

1.3 Scenario 3 

A product of Russian origin that is a good listed in regulation 46Z16Q of Chapter 4JC when it leaves Russia is then processed in a third country into an entirely different product (a good not listed in regulation 46Z16Q. Importing this into the UK is not prohibited under the Russia Regulations. 

For example, non-industrial rough diamonds (HS 7102 31) of Russian origin are exported from Russia and enter Country X. Here, they are used to manufacture jewellery incorporating diamonds (ex 7113), which is now considered to be of country X origin and is imported into the UK. 

The import in this example would not be prohibited under the Russia Regulations. 

2. Guidance on demonstrating compliance 

2.1 Demonstrating supply chain history 

Traders should be prepared to provide documentation to demonstrate evidence of a good’s supply chain, which must be consistent with the prohibitions under the Regulations. 

Evidence requested to be provided through documentation could include: 

• the individual weight of the diamonds within the package if any stone is larger than or equal to 0.5 carats (0.1 grams or equivalent) from 1 September 2024

If the package contains diamonds larger than or equal to 0.5 carats (or equivalent) from 1 September, then other evidence requested to be provided through documentation could include:

• the country of origin of the diamonds processed in the third country (or third countries) 
• the date that the diamonds left their country of origin 
• the country(s) and facility(s) where processing has taken place 

An example of evidence may include, but is not limited to:

• the original Kimberley Process Certificate (KPC) (single or mixed origin) issued when shipped from the diamond’s origin country
• an invoice
• a certificate of origin issued by a chamber of commerce
• a bill of lading
• a diamond origin report or other book or document relating to the goods and where a KPC shows mixed origin
• a verification certificate issued by the Federal Public Service Economy at the Diamond Office, Hoveniersstraat 22, B-2018 Antwerp, Belgium (G7 Certificate)
• additional evidence that there is no Russian content, including of the types listed in this guidance

This is not an exhaustive list, but evidence must be verifiable.

A supplier attestation of compliance with this sanction may be acceptable. However, importers should be prepared to provide further evidence retrospectively if required, including to demonstrate that the goods are not of Russian origin or above the weight limit.

The supplier attestation could take the form of the following wording:

“I hereby declare that the non-industrial, natural diamonds in this shipment were not mined, extracted, produced, or manufactured wholly or in part in the Russian Federation, notwithstanding whether such diamonds have been substantially transformed into other products outside of the Russian Federation”.

3. Licensing provisions 

Traders seeking to import banned Russian diamonds processed in a third country into the UK after 1 March 2024 can apply for an individual licence. The Secretary of State for Business and Trade is ultimately responsible for decisions to grant or refuse a trade sanctions licence in any individual case. There are some specific activities that DBT considers are likely to be consistent with the aims of the sanctions, and thus may be eligible for a licence. These are set out in the statutory guidance on Russia sanctions. 

A licence may be granted for the import of certain Russian diamonds, processed in third countries, if it relates to the execution of obligations arising from contracts concluded before 1 March 2024 for diamonds larger than or equal to 1 carat (0.2 grams or equivalent) or before 1 September 2024 for diamonds larger than or equal to 0.5 carats (0.1 grams or equivalent).

4. General Trade Licence 

The General Trade Licence for sanctioned diamonds permits the import into the UK of certain diamonds that: 

• were outside of Russia since before 1 March 2024 and then processed outside of Russia before being imported into the United Kingdom; or

• were outside of Russia since before 1 September 2024 and then processed outside of Russia before being imported into the United Kingdom

Alongside the import of these goods, the licence permits the provision of certain services and actions related to their import. It may also be used in cases where a trader is unaware of a good’s origin, such that their goods are potentially prohibited, but can evidence that they have been outside of Russia since 1 March 2024 or 1 September 2024. The licence has a record-keeping requirement, and the category above is subject to individual conditions. 

The General Trade Licence will be kept under review. The Secretary of State has the power to vary, revoke or suspend this licence at any time. 

4.1 Goods outside of Russia before 1 March 2024 or 1 September 2024

The licence permits the import of a prohibited relevant third country processed diamond that meets the following conditions: 

• where the diamond is larger than or equal to 1 carat (0.2 grams or equivalent):
  • the diamond was located outside of Russia before 1 March 2024 
  • any diamond processed to produce the relevant processed diamond has been located outside of Russia since before 1 March 2024
• where the diamond is larger than or equal to 0.5 carats (0.1 grams or equivalent) and smaller than 1 carat:
  • the diamond has been located outside of Russia since before 1 September 2024
  • any diamond processed to produce the relevant processed diamond has been located outside of Russia since before 1 September 2024

Traders should be prepared to have documentation available to demonstrate evidence of a processed diamond’s location before the relevant date. This does not need to demonstrate the precise date of manufacture itself, but that the goods existed and were located outside of Russia before that date. Examples of evidence could include an invoice, bill of lading, sales contract or original KPC. This is not an exhaustive list, but evidence must be verifiable.      

4.2 Record keeping 

Regulation 76 of the Russia Regulations sets out a requirement to keep a register or record of each act carried out under the authority of a general trade licence. The regulation sets out which details may be necessary, and the length of time records should be kept for. 

Traders should notify the Secretary of State for the Department for Business and Trade, providing their name (or organisation name), EORI number and the address at which the register or record may be inspected, no later than 30 days after first acting under the authority of this licence. This only needs to be done once, by emailing records.importlicences@businessandtrade.gov.uk. Traders should update the details if there are changes by emailing the same address. 

4.3 Making a customs declaration using this licence 

Use of this licence entails a customs declaration, using code 9042 and licence number GBSAN0002. Traders cannot use a Declaration by Conduct or an oral declaration to import controlled goods (including sanctioned goods). 

5. Monitoring and enforcement 

Traders may be requested to present evidence of a good’s supply chain at the border. In some cases, Customs may require further information relating to the goods to be produced. 

HMRC are also responsible for enforcing the licensing requirements and investigating suspected offences.

We advise all parts of the supply chain for third country processed diamond imports to the UK to undertake the necessary due diligence to ensure that sanctions are not being circumvented directly or indirectly. Not complying with the sanctions could constitute one of a number of criminal offences. See the statutory guidance on Russia sanctions for more information on penalties. 

Importers are also advised to include assurances that imports are not of Russian origin in contractual agreements. 

Please note the General Trade Licence will be kept under review, including in response to ongoing monitoring of trade flows and trade practices. The Secretary of State has the power to vary, revoke or suspend this licence at any time.

This page will be updated accordingly with any future amendments. 

5.1 HS codes in scope for the UK’s import ban on Russian diamonds processed in a third country 

Refer to Chapter 7102 of the UK Integrated Online Tariff checker for more information on the HS codes listed.  

HS Code	Description
7102 10	unsorted diamonds
7102 39	non-industrial diamonds, other than unworked or simply sawn, cleaved or bruted
ex 7102 31	non-industrial diamonds, simply sawn, cleaved or bruted