The Government Accountability Office has called on the Department of Homeland Security to take additional steps to ensure the enforcement of a 2008 law prohibiting imports of rubies and jadeite mined or extracted in Burma (Myanmar) and articles of jewellery containing such gems. Among other things, GAO believes that strong support and co-operation from mainland China is critical to restrict trade in jadeite and jadeite jewellery. However, U.S. officials and foreign jewellery industry representatives say that it is nearly impossible to secure mainland Chinese co-operation to stop this trade because there is high demand for jadeite in the mainland and finishing and processing activities represent an important source of employment there, with as many as three million people working in the jade industry.
U.S. law bans imports of rubies and jadeite of HTSUS heading 7103 that are mined or extracted in Burma as well as articles of jewellery of headings 7113 or 7116 containing such gems, effective from 27 September 2008. This ban is significant for Hong Kong and mainland Chinese jewellery exporters because it applies to jewellery from any location that contains Burmese rubies and/or jadeite. In addition, the law requires exporters of rubies, jadeite and jewellery thereof from non-Burmese sources to implement measures to prevent trade in Burmese covered articles and obliges U.S. importers to maintain full records of the importation for at least five years, although the president has the authority to waive these requirements if certain conditions are met. The law also urges the administration to develop an international arrangement, similar to the Kimberley Process Certification Scheme for conflict diamonds, to prevent global trade in Burmese-origin jadeite, rubies and jewellery containing these stones.
The GAO report states that while U.S. agencies have taken some steps to implement the 2008 ban, they have not shown that they are effectively restricting imports of Burmese-origin rubies, jadeite and related jewellery while allowing imports of non-Burmese-origin goods. DHS has not developed specific audit guidance or conducted any post-entry reviews of importers’ records and there is little guidance to importers on what constitutes verifiable evidence of non-Burmese origin. In addition, although agencies have begun to collect data on ruby and jadeite imports, further efforts could contribute to an understanding of whether restrictions are effectively targeting Burmese-origin imports. The difficulty of determining whether a particular stone is of Burmese origin remains a significant hurdle for both U.S. importers and CBP, given that in many cases it is not possible to make a definitive determination as to the origin of a stone.
In light of this, GAO has advised DHS to develop and implement guidance in consultation with relevant agencies to conduct post-entry reviews of importers’ records and provide improved guidance to importers on the standards of verifiable evidence needed to certify that articles are not of Burmese origin. GAO has also recommended the Department of State to analyse in consultation with DHS and Treasury the efficacy, challenges and difficulties faced in implementing measures to restrict trade in Burmese-origin rubies, jadeite and related jewellery, and report to Congress how these measures will contribute to its efforts to influence the military regime in Burma.
