Burmese Ruby

As is reported by National Jeweler, on September 29, 2008 the American embargo on importing gems from Myanmar came into force. This happened 60 days after President George Bush signed the Tom Lantos Act into law.

National Jeweler says the gemstones which have already been imported to the United States from Myanmar may take part in any transactions, at least until all such stones will be sold.

The U.S. Customs and Border Protection agency has issued new, harmonized tariff system codes for all non-Burmese rubies and jadeite imported into the United States to distinguish those goods from the ones that have been banned, according to a press release by the Jewelers Vigilance Committee (JVC).

One issue that has concerned gemstone dealers is whether or not stones imported before the ban could be exported for cutting or jewelry manufacturing purposes, and then re-imported.

"My best impression is that it would not be wise right now to export Burmese rubies that are now in the United States," Cecilia Gardner, the JVC's president, said. "I wouldn't say that won't happen in the future, but my advice at the moment is that I would not advise anyone in the United States to move rubies out of the country right now."

The Customs office has created codes identifying all rubies and jadeite (such codes did not exist before), and while the codes identify the type of gemstones, they do not include country of origin. That means that even if the stones are shipped from Thailand, for example, it is unclear how a U.S. importer could prove to Customs that the stones were not originally mined in Myanmar, Gardner said.

The U.S. Customs office was supposed to advise the JVC on those details but had not done so, she said.

AGTA Chief Executive Officer Douglas Hucker said he has received numerous questions from gemstone-dealer members about the re-importation issue. Hucker said the information should be coming soon.

On the retail front, companies such as Tiffany and Co. and Cartier stopped selling Burmese gemstones years ago because of Myanmar's human rights violations, and Jewelers of America has applauded the act's passage, encouraging member retailers to support international human rights by steering clear of the stones.

AGTA retail member Malcolm Koll, owner of Charles Koll Jewellers in San Diego, Calif., says he is not concerned about procuring rubies in the immediate future but thinks the ban could impact retailers later on.

"I think there's a fair amount of inventory in the country already," says Koll. So far, Koll says he has not seen prices go up.

But he is concerned that the well-meaning legislation won't really be effective.

"I'm from South Africa, and being from there, I do understand that sanctions don't work," he says. "I'm afraid that we'll be buying Burmese goods that just aren't labeled [as such]."

The ban could also provide an opening for companies such as Canada's True North Gems, which has exclusive rights to mine rubies in the southwest region of Greenland. The plan is to offer rubies that are conflict-free and fair trade, in sizes that range from melee up to as much as five carats.

Pala International, based in Fallbrook, Calif., has purchased some rubies from Tanzania, but its vice president Hall says most of the material tends to be pinkish and included and it's no match for Burmese red.

"Some location is going to have to fill that void, and let's face it, everybody's going to be losing some sales," he says according to National Jeweler.