Need for introduction of a distinct Harmonized (HS) Code for HPHT (High-Pressure High Temperature) diamond Category.

Therefore, it would be the initial stage to segregate the HS Codes for HPHTs & CVDs. We have to note that we are on a spree to grow more CVDs. While all those rough HPHTs are being imported! Therefore, with the help of a separate HS code, we have to focus on boosting our local producers of CVDs under the Vocal for Local concept policy rather than boosting HPHTs under the LGDs HS Code.

2: A tab on the imports of CVDs:

To amplify the Vocal for Local concept and extend supportive hands to homegrown CVDs, we suggest putting a tab on the imports of rough & polished CVDs by imposing import taxes & duties. A duty on wild CVDs import is meant to attract a 5% & 10% levy on polished CVDs import.

3: Tab on polished HPHTs:

Compiled by : Ms Reena Shukla Director - Lab-Grown Diamond and jewellery Promotion Council

That significant leap in 2019 distinguished Mined Diamond & Laboratory Grown Diamond (LGD). Currently, LGDs have been categorized as HS Code 7104 2100 for Rough LGDs & 7104 9100 for Cut & Polished LGDs. Further, the LGD industry is drawing attention to the micro classification in the LGD category. Three significant points,

1: A distinct HS Code for HPHT

2: A tab on the imports of CVDs,

3: An account of polished HPHTs.

1: A distinct HS Code for HPHT:

The manufacturing process of those LGDs is classified into two because of their manufacturing system & features, i: HPHT & ii: CVD (Chemical Vapor Deposition). Here, we must distinguish a Harmonized (HS) Code for HPHT & CVDs.

China has adopted those HPHTs widely while the rest of the global market, including the USA & India, has accepted the modern and precise way to grow LGDs. India contributes around 15% in the worldwide production of lab-grown diamonds are CVDs, as we have an installation of tools & machinery for HPHTs diamond manufacturing.

Looking at the present scenario, it is estimated that more than 4500 reactors of CVDs are currently installed. About 3000 reactors are running on average, producing 300,000 carats of Rough CVD Lab Grown Diamonds and providing livelihood to about 100,000 skilled and semi-skilled labourers.

Out of every 100 diamond-cutting & polishing artisans in the globe, 94 are Indians. India is full of diamond cutting & polishing artisans; therefore, we suggest encouraging rough HPHTs rather than polished ones! Let every rough HPHTs get cut & polished by our local artisans. Therefore, no levy on rough HPHTs imports, while polished HPHTs could attract a 10% import duty.