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India confronts detection snags

Traders call on the government to help prevent lab-grown stones from getting mixed in with natural ones.

By Zainab Morbiwala
For diamantaires, the threat of synthetic diamonds being sold as natural stones looms large, and the fear is warranted. A February article in The Economic Times reported Indian diamond houses in India had “alerted” the government regarding the urgent need to track the trade of cheaper synthetic diamonds. The diamond companies suspected jewelers might be freely substituting lab-grown diamonds for natural ones.

The Gem & Jewellery Export Promotion Council (GJEPC) has been playing a crucial role in the detection of synthetic diamonds, partnering with the Gemological Institute of India (GII) to station a verification machine at the Bharat Diamond Bourse to test stones’ authenticity. The council has also advocated taking action against any company found selling lab-grown diamonds marked as natural. The sale of synthetic diamonds is banned at the bourse.

In addition, the GJEPC organizes the Diamond Detection & Expo Symposium — the third edition of which took place last month in Mumbai — which aims to introduce the industry to new technology and tools for distinguishing natural diamonds from synthetics.

Rough times

Nirupa Bhatt, managing director of the Gemological Institute of America (GIA) for India and the Middle East, said the GIA’s iD100 testing device was being used at its Mumbai lab. The instrument distinguishes natural diamonds from chemical vapor deposition (CVD) and High Pressure-High Temperature (HPHT) synthetics. “The possibility of undisclosed synthetic diamonds in the gem and jewelry supply chain is of great concern to the industry,” he noted. The GIA will soon be opening an additional lab in Surat.

Ravi Chhabria, managing director of the Mumbai branch of HRD Antwerp’s diamond-certification and training facility, stressed that industry players had mostly been ethical, though there had been a few unfortunate cases that had damaged the industry’s reputation.

“It is definitely a must today to certify all diamonds and jewelry, as the fault is sometimes not attributable to diamond sellers or jewelers, who may also have been misled or do not have the requisite knowledge to check the authenticity of the products they are selling,” he said.

Chhabria cited some of the common challenges the industry faced in detecting synthetics. “Science and technology are evolving constantly, and at a fast pace. Hence, it is important for grading labs to enhance and upgrade [the equipment they sell], as well as increase the level of internal verifications operated in the labs itself.”

The process of grading stones has remained consistent over the years, Chhabria said, though the threat of consumers being cheated or misled has increased.

Full disclosure

Bhatt highlighted the importance of trust, saying it was fundamental in the gem and jewelry industry. “One of the most important aspects of building and maintaining that trust is disclosure of the characteristics of any gemstone offered for sale. Trust and disclosure are supported by independent and trusted grading reports prepared by trained staff using rigorous processes and appropriate instruments to evaluate a diamond’s 4Cs…and identify synthetic and treated diamonds.”

The Economic Times article revealed that Indian diamond houses had been calling on the Commerce Ministry to issue a code for rough synthetic diamonds in addition to the Harmonized System (HS) code the government assigned in 2016 for polished synthetic diamonds. Rough synthetic diamonds are currently being imported using the same code as natural rough, making it nearly impossible to track the stones, according to an industry insider. A distinct HS code for synthetic rough will help keep natural and synthetic pipelines separate, said GJEPC chairman Pramod Agarwal.

Article from the Rapaport Magazine - May 2018. To subscribe click here.

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