In September 2007, Myanmar saw eruption of mass riots, whose suppression resulted in victims and numerous violations of human rights.
As is known, Myanmar is the major source of rubies and an important supplier of many other gems, such as, for instance, jade. It is believed that profits from the sale of gems go straight to the ruling junta.
After the armed suppression of protestors, the jewelry world raised voices to stop buying stones mined in Myanmar and some jewelry companies announced that they would not use Burmese stones. The World Jewelry Confederation (CIBJO), for its part, called the CIBJO organizations to refrain from purchasing gemstones from Myanmar. The International Colored Gemstone Association (ICA) also declared that it exhorted “its members to desist buying Burmese gemstones from any government sources and marketing organizations.” This statement came two weeks after the suppression of Myanmar demonstrations by force. Later the embargo on Myanmar export was supported by the American Gem Trade Association (AGTA) and by Jewelers of America (JA).
In October, 27 countries of the European Union banned the purchase of Burmese gemstones. On October 18, an appropriate bill was sent to the House of Representatives of the U.S. Congress. It has already passed the Committee on Foreign Affairs and is to be considered by the House Budget Committee. The bill bans the sale of rubies, jades and other gemstones mined in Myanmar and passed over neighboring countries. American legislators emphasize that 90% of rubies come to the world marked from Myanmar. However, it is believed that only 3% of U.S. supplies are availed by Burmese export.
As is known, Russia and China refused to support any U.N. resolutions relating to the Burmese affairs. The Russian jewelry community also did not take any measures in view of the events in Myanmar. Sean Turnell, an Australian expert on Burmese economy, believes that gems smuggled from Myanmar as well as uncontrolled purchasing of Burmese gemstones by some countries (in particular, China and Japan) will mitigate the effect of the boycott, but in any case, in his opinion, there is going to have to be a large discount while purchasing Burmese gemstones.
Very soon, it will be clear whether this is true or not. The Gems Emporium in Myanmar, the first one from the period of riots, is to be closed on November 26.
There were simultaneous developments in the situation related to the U.S. importation of particle accelerator treated gemstones, in the first place, blue topazes. Earlier, several large American companies stopped their sales of such gemstones until the situation would be cleared.
It was reported that importers of precious gemstones irradiated by the particle accelerator were to obtain import licenses after the decision of the Nuclear Regulatory Commission (NRC) would be effected. This will happen on November 30 this year.
This legislation is valid for all gemstones irradiated by neutrons. Such products causes anxiety among companies engaged in processing stones whose color was modified by the particle accelerator. Persons owning such gemstones or engaged in their distribution will have additional time to obtain necessary licenses.
Unlike blue topazes, diamonds whose color is modified by electron accelerators without radioactive impact on stones and environment will not be subject to NRC control. The new legislation, according to IDEXonline, is rather vague on the difference between these two types of products, as well as on whether there will be a legislative distinction drawn between them and on what kind of licenses these two will need.
The jewelry industry participants dealing with color diamonds (particularly those electron-treated) express their concerns that NRC would not want to divide stones irradiated by both types of accelerators and will require licenses from those manufacturers whose stones are not radioactive.
Businesspersons expect further explanations from NRC and confirmation that they will not be subject to the new legislation. According to NRC, if produced/sold gemstones will not be radioactive, the Commission will not interfere.
Besides, the Jewelers’ Vigilance Committee declared that it is also working on legislation, being one of the leading associations in the field of conformity with legislation requirements and ties with government agencies.
