Lok Sabha Question No. 333 (UNSTARRED), answered on 2017-12-18
Subject: Import of Artificial Diamonds from China
Ministry: COMMERCE AND INDUSTRY
Asked by: GOWDAR MALLIKARJUNAPPA SIDDESHWARA

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY (DEPARTMENT OF COMMERCE)

## LOK SABHA UNSTARRED QUESTION NO.333 TO BE ANSWERED ON 18 th  DECEMBER, 2017

## IMPORT OF ARTIFICIAL DIAMONDS FROM CHINA

333. SHRI G.M. SIDDESHWARA

Will the Minister of COMMERCE & INDUSTRY ( वा ͨणÏय एवं उɮयोग मंğी ) be pleased to state:

- (a) whether the Government is aware that artificial diamonds are being imported from China in large numbers which look like real ones but have no resale value;
- (b) if so, the reaction of the Government thereto;
- (c) whether the Government is also aware that Indian consumers are being cheated due to lack of identification of genuineness of imported diamonds from China; and
- (d) if  so,  the  steps  taken  by  Government  to  save  the  Indian  consumers  from  being cheated?

## ANSWER

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THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (SHRI C. R. CHAUDHARY)

(a) to (d): Artificial diamonds are also known as 'man-made'/'synthetic'/ 'lab-created'/ 'labgrown' diamonds. These are artificially created stones that are made in specialized laboratory conditions. These diamonds have the same physical and chemical properties and are identical to diamonds of natural origin.

With  growth  in  this  specialised  sector,  the  diamond  industry  brought  to  the  notice  of  the Government  the  need  for  creation  of  a  separate  Harmonised  Systems  Code  (HS  Code)  for Synthetic Diamonds and synthetic stones. Accordingly, in the interest of the consumers, two separate codes were created in the Finance Bill, 2016. The new codes created are 7104 90 10 for  Synthetic  Diamonds  &  7104  90  90  for  synthetic  stones,  thereby  establishing  a  clear classification  differentiation  from  natural  Diamonds  which  fall  under  HS  Code  Heading: 7102.

Import data of Diamonds under Exim Code 7102 (Diamonds, whether or not worked, but not mounted  or  set)  and  7104  90  10  (Laboratory  created  or  laboratory  grown  or  manmade  or cultured or synthetic diamonds) from China vis-a-vis total imports is as under:

Table:1

Import of diamonds (HS code 7102) Values in US $ Million

| Year                 | Total Imports   | Imports from China   |
|----------------------|-----------------|----------------------|
| 2014-15              | 20,495.36       | 1. 30                |
| 2015-16              | 16,865.96       | 6.21                 |
| 2016-17              | 19,332.14       | 1.31                 |
| 2017-18 (APR TO SEP) | 15,091.34*      | 0.17*                |

Table: 2

| Import under HS Code 71049010 (Lab grown Diamonds)   | Import under HS Code 71049010 (Lab grown Diamonds)   | Import under HS Code 71049010 (Lab grown Diamonds)   |
|------------------------------------------------------|------------------------------------------------------|------------------------------------------------------|
| Year                                                 | Total Imports                                        | Values in US $ Mill from China                       |
| 2017-18 (APR TO SEP)                                 | 160.33*                                              | 1.35*                                                |

From the above, it may be seen that imports from China is miniscule compared to our total import.

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