HS Code:
Sapphires, classified under HS Code 7103.91 (precious stones, worked or unworked but not mounted or set), are highly valued gemstones known for their striking blue color, though they can also appear in other colors such as yellow, pink, and green. They are primarily used in jewelry, with industrial applications in watchmaking and electronics due to their durability (second only to diamonds on the Mohs scale). Global trade in sapphires is driven by mining in countries with rich deposits and demand from luxury markets and industrial sectors. The trade involves both raw and processed sapphires, with significant value addition occurring through cutting and polishing.
Total Trade Volume
Approximately $1.2 billion USD
Data from 2022
Source
UN Comtrade Database and ITC Trade Map
$300 million USD
25% of global trade of total trade
Increasing
$250 million USD
21% of global trade of total trade
Stable
$180 million USD
15% of global trade of total trade
Decreasing
$150 million USD
12.5% of global trade of total trade
Increasing
$100 million USD
8.3% of global trade of total trade
Stable
Average Rate
5.2% ad valorem
Highest Rate
12% (imposed by certain developing markets to protect local industries)
Lowest Rate
0% (under free trade agreements or for raw sapphires in specific countries)
Rising demand for ethically sourced sapphires
Increased focus on traceability and certification has boosted trade from countries with transparent mining practices like Sri Lanka and Madagascar, while putting pressure on non-compliant regions.
2021-2022
Growth in synthetic sapphire production
Synthetic sapphires, used in industrial applications and affordable jewelry, are reducing demand for low-quality natural stones, affecting smaller exporters.
2020-2022
Shift in consumer preference toward colored gemstones
Growing interest in unique sapphire colors (e.g., pink and yellow) has increased trade value for countries producing rare varieties, diversifying market dynamics.
2019-2022
Sri Lanka introduced stricter export controls on raw sapphires to promote local cutting and polishing industries, aiming to capture more value domestically.
March 2023
This could increase prices for raw sapphires globally while boosting Sri Lanka's share in processed gemstone exports.
New sapphire mining sites were identified in northern Madagascar, potentially increasing the countryโs export volume significantly over the next few years.
July 2022
This may lead to a shift in global supply dynamics, with Madagascar challenging Sri Lankaโs dominance in certain markets.
The European Union introduced regulations requiring detailed provenance documentation for imported sapphires to combat unethical mining practices.
January 2023
Exporters without robust certification systems may face reduced access to the lucrative EU market, while compliant countries gain a competitive edge.