New U.S. Customs Regulations Regulating the Importation of Jadeite and Rubies

Issue 67, November 10, 2008

U.S. Customs and Border Protection (CBP) recently initiated a plan for the phased-in enforcement of a certification program required for imports of jadeite and rubies mined in or extracted from any country (other than Burma) and imports of articles of jewelry containing such jadeites or rubies. This requirement is tied to the Tom Lantos Block Burmese JADE Act of 2008 (JADE Act). The new regulations require the foreign exporter of non-Burmese covered articles to have measures in place to ensure that any jadeite or rubies contained in exports to the U.S. were not mined in or extracted from Burma.

The first phase began on September 27, 2008, requiring a certification from both the importer and the exporter of the above referenced products. The exporter certification consisted of a written declaration that any jadeite or rubies contained in exports to the U.S. were not mined in or extracted from Burma and also contained certain record-keeping requirements. CBP also requires a paper entry for enforcement purposes. In order to allow the trade to prepare for this requirement CBP granted a 30-day grace period from the enforcement of these certifications; however, this grace period expired October 26, 2008.

Please note that CBP has now amended its earlier instructions and is no longer requiring an exporter declaration. Instead, the exporter certification requirement of this scheme will be administered through existing invoice requirements. During Phase 1 importers and exporters will be required to ensure that the “responsible employee of the exporter” named on any invoices for these articles has the knowledge, or can readily obtain the knowledge, regarding the exporters’ new obligations for these transactions.

CBP’s notice stated that within the next few months, the government agencies involved would make a determination regarding what documents will be needed to support verification of export controls. CBP also will explore an electronic certification process.

Note that the importation of jadeite and rubies mined in or extracted from Burma and articles of jewelry containing such jadeite or rubies, is prohibited (unless it meets one of two exceptions listed in the act).

CBP notice (posted 11/03/08) available at- http://www.cbp.gov/linkhandler/cgov/trade/trade_programs/cargo_summary/laws/public_law/jade_act.ctt/jade_act.pdf

ITC Web page indicating new tariff breakouts for JADE Act, available at -http://www.usitc.gov/tata/hts/

Sincerely,
Paul E. Vroman
Manager, Regulatory & Compliance Consulting and Projects
Licensed Customs Broker
NCBFAA Certified Customs Specialist