Grown in USA or Made in USA? Not the latter!

[Garry H (Cut Nut)]

Discussion about 'Made in USA' that might get some US companies into trouble because the material is grouned and polished in India!
Article from Rob Bates JCK linked below

"What about lab-grown companies that tout their products as being “Made in the USA” or “Grown in the USA”? Even assuming the claim is true—and every diamond the company sells was created in a U.S. factory—the company might potentially run into trouble if its products are cut in China and India.

“If they are sent to India or China for cutting or polishing, the FTC would likely see them as a product of China or India,” Yood says. “The issue here is that the U.S. government’s standard is what it calls ‘substantial transformation.’ If you cut a lab-grown diamond overseas, U.S. Customs would argue it is not an American product, and that its origin is China.”

That likely rules out U.S.-“made” or “produced” claims for goods cut abroad, though Yood isn’t sure how the FTC would view “grown in the USA.” "

Most Jewelry Can't Be Called "Made in USA" Under FTC Rule - JCK

If a jewelry manufacturing plant is located in the United States, that plant can say its jewelry is made in the USA, right? Or at least manufactured in

www.jckonline.com

 

[denverappraiser]

I’ve long thought the FTC Made in USA Labeling rule needed updating. They continue to use “Made in USA” and “Made in America” interchangeably. This is incorrect for several reasons. There are 35 countries and 25 territories in America, and there are parts of the USA that are NOT in America. They really should know better.

https://www.ftc.gov/system/files/documents/federal_register_notices/2021/07/2021-07-01_clean_musa_finalrule.pdf

 

[Rockdiamond]

Call me a skeptic ( again) but I just don’t see how reliable origin tracing is possible. Even massive companies need to purchase polished or rough - so a true “mine (or lab) to finger operation …. Impossible to verify
That’s aside from all the valid concerns raised by Garry and Neil.
As a seller, I’m never going to guarantee something outside my control like that. Of course that doesn’t stop many sellers from doing just that

 

[Garry H (Cut Nut)]

Call me a skeptic ( again) but I just don’t see how reliable origin tracing is possible. Even massive companies need to purchase polished or rough - so a true “mine (or lab) to finger operation …. Impossible to verify
That’s aside from all the valid concerns raised by Garry and Neil.
As a seller, I’m never going to guarantee something outside my control like that. Of course that doesn’t stop many sellers from doing just that

Largely as a result of aggressive anti mined diamond marketing from the LGD industry, the natural diamond industry is tracking and identifying country of origin a lot of larger diamonds. New technologies, including 3D scanning of rough stones and block chain, make tracking larger rough diamond’s journey through the rough sale, cutting process and sale to a retailer possible.

Smaller diamonds are more difficult to track, partly because of the cost and demand, but also for various logistical issues. Most larger stones are sawn and cut into two or up to 20 smaller diamonds. Most large diamond cutting manufacturers sell some of their rough diamonds and many of the smaller sawn-off cuts. There are cutters that specialize in large stones and those that do smaller diamonds. Take Tiffany’s cutting manufacturer, Laurelton, they have annual sales where they sell off rough that likely does not meet their standards or are too small for their opperation. (I expect they buy in melee). Each of those companies knows the origin of all or most of their rough diamonds, the smaller companies that buy the ‘left overs’ won’t be told and would not have the systems or the capacity to manage individual tracking.

 

[Rockdiamond]

Super interesting Garry!
When you say “larger stones”….in this context, what sizes are we talking about?

 

[Garry H (Cut Nut)]

Super interesting Garry!
When you say “larger stones”….in this context, what sizes are we talking about?

The stones that would be scanned by a miner using the Galaxy system that plots inclusions etc would possibly be over say 5carat - I do not know exactly but Alrosa and I believe BHP have been doing that.

 

[Rockdiamond]

You’re kind of making my point. Percentage- wise, how many diamonds sold are 5ct +
Hence my statement that true origin tracing is all but impossible

 

[Garry H (Cut Nut)]

You’re kind of making my point. Percentage- wise, how many diamonds sold are 5ct +
Hence my statement that true origin tracing is all but impossible

Hahaha - yes David, natural diamonds are much rarer as the size increases (although XRT is changing that) unlike CVD synthetic diamonds (because you keep using EM). Run the machine twice as long and you cut a polished diamond of 4X the Ct Wt.

BUT - most very large rough diamonds are cut into multiple diamonds. I would guess that the average +10ct results in 5 to 20 polished diamonds. And that is why for natural diamonds the polished cost 4 X $ more for 2X Ct Wt.
So i look forward to the time when LGD's over 5 ct are cheaper per carat than under 1.00Ct. (rather like Blue Topaz)