Diamonds, whether or not worked, but not mounted or set

HS code 7102 is a 4-digit heading in the Harmonized System that covers: Diamonds, whether or not worked, but not mounted or set. Heading 7102 is exclusively dedicated to diamonds, covering them in all forms, whether natural or synthetic, industrial or gem-quality, and whether unworked (rough) or worked (cut and polished). The critical exclusion is that they must *not* be mounted or set in jewelry or other articles; loose diamonds are the focus. This classification is fundamental for the global diamond industry, encompassing everything from newly mined rough diamonds to exquisitely cut and polished stones ready for setting. Sub-categories often distinguish between industrial diamonds (used as abrasives or in tools) and gem-quality diamonds, as well as rough versus polished stones, reflecting significant differences in value and end-use. Trade compliance under 7102 demands meticulous documentation, particularly for rough diamonds, which are subject to the Kimberley Process Certification Scheme to prevent the trade in conflict diamonds. This heading's inclusion in Section XIV underscores diamonds' status as a primary precious commodity, driving significant economic activity globally and requiring strict adherence to international trade regulations due to their high value and geopolitical significance. It is distinct from other precious stones due to its unique physical properties and specific market dynamics.

Rough industrial diamonds, rough gem-quality diamonds, uncut diamonds, polished diamonds (round brilliant cut), polished princess-cut diamonds, polished emerald-cut diamonds, laser-drilled diamonds (unmounted), fancy colored diamonds (loose), diamond melee (loose), industrial diamond dust (unmounted), diamond boart (unmounted), synthetic industrial diamonds (unmounted), natural industrial diamonds (unmounted), diamond powders (unmounted), diamond grit (unmounted), loose lab-grown diamonds (unmounted), loose natural diamonds (unmounted), diamond slices (unmounted), raw diamond crystals, diamond bort, loose rose-cut diamonds, loose cushion-cut diamonds, loose pear-shaped diamonds, loose marquise-cut diamonds, loose oval-cut diamonds.

The most significant misclassification risk for 7102 is with diamonds that are *mounted or set* in jewelry or other articles. Such items belong to 7113 (Articles of jewelry and parts thereof, of precious metal or of metal clad with precious metal) or 7116 (Articles of natural or cultured pearls, precious or semi-precious stones). Industrial diamond tools (e.g., diamond drill bits, saw blades with diamond segments) are classified under Chapter 82 (Tools, implements, cutlery, spoons and forks, of base metal; parts thereof of base metal), as they are finished articles where the diamond is an integral working part, not merely a raw material. Imitation diamonds, such as cubic zirconia or moissanite, are classified under 7104 (Synthetic or reconstructed precious or semi-precious stones) or other chapters depending on their material. The key is authentic, unmounted diamonds.

Major diamond mining countries include Russia, Botswana, Canada, South Africa, and Australia. Key trading, cutting, and polishing centers are Belgium (Antwerp), India (Surat), Israel, and the USA. The global diamond trade is highly regulated, especially for rough diamonds, through the Kimberley Process Certification Scheme. Tariffs on both rough and polished diamonds are often low or zero in major trading hubs to facilitate trade and support domestic cutting and polishing industries. Specific duties can vary by country and type of diamond (rough vs. polished, industrial vs. gem), often influenced by bilateral trade agreements aimed at promoting fair trade and economic development.

HS code 7102 is a 4-digit heading under Chapter 71 of the Harmonized System. The first 2 digits (71) identify the chapter, and digits 3-4 (02) specify the heading. This code contains multiple 6-digit subheadings for precise product classification.