The Gemological Institute of America (GIA) has temporarily stopped accepting goods at its labs abroad that need to be shipped to the US for service, due to the new tariffs President Donald Trump has issued.

The institute has also asked its clients outside the US to refrain from submitting items for grading, reports or other services directly to its US labs, according to a letter it sent to customers last week.

“There is a baseline 10% tariff on goods being imported into the US,” the GIA explained. “Additional tariffs for products from specific countries, including India, South Africa, Thailand and others, will begin on April 9. These tariffs will apply to gems being shipped to a GIA laboratory in the US, even if only for laboratory services and not for sale.”

Last week, the US slapped “reciprocal” tariffs on multiple countries, including a 27% import duty on Indian goods and 20% on those originating from the European Union. According to the US government website, a temporary importation under bond (TIB) allows consumers to ship goods to the US that are not for sale, such as those headed to labs or trade shows, without incurring customs duty. However, many in the industry are questioning its validity. Both the Antwerp World Diamond Centre (AWDC) and Robert Wake-Walker of WWW International Diamond Consultants have stated on their websites that there are no exemptions for goods imported into the US, no matter the reason.

“We recognize that these changing conditions may cause confusion,” the GIA noted. “It is important that all clients and their shippers understand and comply with the US government requirements. GIA is working to understand the impact of the newly announced tariffs, what operational changes may be needed, and how we can continue to provide services in other GIA locations.”

In the meantime, clients that ship items to the GIA’s US locations are responsible for tariff charges incurred, the amount of which will be determined based on the country where the rough diamond was substantially transformed into a faceted diamond, the GIA added.

Courtesy: AOJ Desk News