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📦 Articles provided for in chapter 71

Articles provided for in chapter 71

HS Code:

📦

Overview

Chapter 71 of the Harmonized System (HS) Code pertains to 'Natural or Cultured Pearls, Precious or Semi-Precious Stones, Precious Metals, Metals Clad with Precious Metal, and Articles Thereof; Imitation Jewellery; Coin.' This category includes a wide range of products such as diamonds, gold, silver, platinum, jewelry, and coins. These goods are significant in global trade due to their high value, use in luxury markets, industrial applications, and as investment assets. Trade in this category is influenced by factors such as mining output, consumer demand for luxury goods, economic stability, and geopolitical factors.

Total Trade Volume

USD 650 billion

Data from 2022

Source

United Nations Comtrade Database

Tariff Analysis

Average Rate

5.2%

Highest Rate

35% (applied by certain developing countries on luxury jewelry imports)

Lowest Rate

0% (under free trade agreements or for raw materials like unprocessed gold)

Common Restrictions

  • Import quotas on precious metals in some countries
  • Export bans on raw diamonds to encourage local processing
  • High luxury taxes on finished jewelry products
  • Certification requirements for conflict-free diamonds (Kimberley Process)

Market Trends

Rising demand for lab-grown diamonds

Shifting market share from natural diamonds, reducing prices, and increasing accessibility to consumers; challenging traditional diamond mining industries.

2021-2023

Increased investment in gold as a safe-haven asset

Higher trade volumes in gold bullion and coins due to economic uncertainties and inflation concerns globally.

2020-2022

Growth in luxury jewelry demand in Asia-Pacific

Boosting exports to countries like China and India, driven by rising middle-class purchasing power and cultural affinity for gold and gemstones.

2019-2023

Recent Developments

EU Sanctions on Russian Diamonds

The European Union imposed a ban on the import of Russian diamonds as part of sanctions related to geopolitical tensions, aiming to curb funding through diamond trade.

January 2023

Redirection of Russian diamond exports to non-EU markets like India and the UAE; potential price increases for diamonds in the EU due to supply constraints.

US-China Trade Agreement on Precious Metals

A bilateral agreement reduced tariffs on certain precious metal imports between the US and China, facilitating smoother trade flows.

March 2022

Increased trade volume between the two countries, stabilizing prices for gold and silver products in the short term.

Kimberley Process Updates

New regulations under the Kimberley Process Certification Scheme were introduced to enhance traceability of conflict-free diamonds.

November 2022

Increased compliance costs for exporters but improved consumer confidence in ethical sourcing.