Ban on Russian Diamonds and Jewellery

Summary#

These final regulations, titled Regulations Amending the Special Economic Measures (Russia) Regulations: SOR/2023-258, add Russian diamonds and many diamond-related jewellery products to Canada’s import ban. They came into force on December 5, 2023 and align Canada with a G7 commitment to block revenues from Russian diamonds.

What it does#

• Adds a range of diamond and diamond‑related goods to the import ban in Special Economic Measures (Russia) Regulations, using World Customs (HS) codes so customs can identify them. Key categories added include:
  • rough and worked diamonds (HS 7102, excluding industrial diamonds HS 7102.21 and 7102.29)
  • synthetic/reconstructed diamonds (HS 710421, 710491)
  • jewellery and parts (HS 7113)
  • goldsmiths’/silversmiths’ wares (HS 7114)
  • other precious‑metal articles (HS 711590)
  • articles of precious/semi‑precious stones (HS 711620)
  • watches with precious‑metal cases (HS 9101)
• Updates the existing export ban listings for consistency with the new import ban (some item numbers and descriptions are adjusted).
• Fixes English spelling in the Regulations from “jewelry” to “jewellery” in a few places.
• Exempts goods if a contract to import, buy or acquire them was made before the amendments came into force.

Who's affected#

• Importers, wholesalers, retailers and jewellery businesses that source or sell diamonds or diamond jewellery.
• Customs brokers and freight companies handling diamond shipments.
• Consumers buying diamond jewellery who want to know the country of origin.
• The Russian state-owned diamond company Alrosa, which is a major global supplier, and the wider Russian diamond industry.
• Border and enforcement agencies such as the Royal Canadian Mounted Police (RCMP) and Canada Border Services Agency (CBSA).
  If it’s unclear whether a specific item is covered, businesses will need to check the HS codes listed in the Regulations.

Why it matters#

• The rule is meant to reduce revenue available to Russia for its war in Ukraine by stopping direct imports of Russian diamonds into Canada. This follows a G7 plan to cut off those revenues.
• Practical effects for businesses are likely small in Canada: prior to these changes Canadian imports of the affected Russian products fell from $4.1 million in 2021 to $327,224 in 2022 and $13,440 in the first eight months of 2023.
• Businesses that still relied on Russian sources will need to find alternative suppliers or seek permits where allowed.
• Enforcement can include fines (up to $25,000) and jail (up to one year on summary conviction, or up to five years on indictment).
• The amendments apply as of December 5, 2023; contracts made before that date are not affected.