How to Source Gems and Jewellery from India for European Markets

A European jewellery importer’s first order from India rarely fails because the workmanship was poor. It fails because duty was miscalculated, a hallmarking requirement was missed at the destination country, or a specification was approved verbally and interpreted differently on the factory floor. India cuts and polishes the large majority of the world’s diamonds and produces gold and gemstone jewellery at a scale few other origins can match, but sourcing gems and jewellery from India for European markets means working through a denser compliance layer than almost any other product category — precious metal, precious stone, customs, and consumer protection rules all apply at once.

Quick Answer

Sourcing gems and jewellery from India for Europe means confirming HS classification and duty treatment before quoting, meeting the hallmarking law of the specific destination country (not just the EU generally), and locking a written quality specification before production. Duty on finished jewellery into the EU and UK typically runs 2.5 to 4 percent; loose gemstones are usually duty-free but still carry VAT.

What India Supplies in Gems and Jewellery

India’s gem and jewellery sector spans three distinct activities, and a buyer benefits from knowing which one they actually need before approaching suppliers.

Diamond Cutting and Polishing

Surat, in Gujarat, is the centre of India’s diamond cutting and polishing industry and processes the overwhelming majority of the world’s diamonds by volume, working from rough stone sourced internationally through recognised diamond trading centres. A buyer sourcing cut and polished diamonds from India is typically buying finished stones for setting, not rough material — the rough diamond trade itself sits under a separate, more tightly controlled certification regime.

Gemstone Jewellery

Jaipur, in Rajasthan, is India’s principal centre for coloured gemstone cutting and gemstone-set jewellery, with deep specialisation in emerald, ruby, and semi-precious stone work alongside traditional Kundan and Meenakari techniques. Quality and consistency vary meaningfully between workshops, which makes sample approval against a written grading standard essential before any production run.

Gold Jewellery

Mumbai and several regional hubs produce gold jewellery across a wide range of caratages and styles, from machine-made chain to hand-finished pieces. Caratage, finish, and stone-setting method all need confirming in writing, since “gold jewellery” alone is not a specification a European hallmarking authority will accept.

EU Customs Procedures and Duty Structure

Duty treatment differs sharply between loose materials and finished jewellery, and getting this distinction wrong is one of the most common costly mistakes a first-time importer makes.

Finished Jewellery Duty Rates

Finished jewellery entering the EU under HS heading 7113 generally attracts an import duty of 2.5 to 4 percent of the customs value, with the exact rate depending on the specific tariff subheading and material composition. VAT is charged on top and varies by member state, from around 17 percent in Luxembourg to over 25 percent in some Nordic and Eastern European states. The UK applies a broadly similar structure — 2.5 percent duty on jewellery plus 20 percent VAT.

Loose Stones and Unset Precious Metal

Loose gemstones and unwrought precious metal are treated differently to finished jewellery. Most jurisdictions in Europe apply zero customs duty to loose diamonds and loose coloured gemstones, though VAT is still due on import. This is worth confirming precisely at the tariff classification stage, since the difference between “loose stone” and “stone already set” changes the duty calculation entirely — and misclassifying a batch to save duty is a compliance risk, not a saving.

Getting the Classification Right

The EU’s TARIC database gives the definitive tariff classification and applicable rate for any specific product description, and it is worth checking against the exact specification before quoting a landed cost to a retail buyer, rather than working from a general rule of thumb.

Hallmarking Requirements in the UK and Europe

Hallmarking law is not uniform across Europe, and this is the single most misunderstood compliance requirement among first-time importers.

UK Hallmarking Law

Under the Hallmarking Act 1973, any item sold in the UK and described as gold, silver, platinum, or palladium must carry a hallmark from one of the UK’s four assay offices — Goldsmiths’ Company London, Birmingham, Sheffield, or Edinburgh — once it reaches a minimum weight threshold: 1 gram for gold, 7.78 grams for silver, 0.5 grams for platinum, and 1 gram for palladium. Selling an unhallmarked item above these thresholds described as precious metal is a criminal offence in the UK, regardless of where the item was manufactured. This applies to the importer, not the overseas manufacturer.

EU Hallmarking Varies by Country

The EU does not have a single hallmarking regime. Germany and Luxembourg require no pre-market hallmark at all. France and Spain require a hallmark and importer registration with a national assay authority before goods can be sold. The Netherlands requires a fineness mark and sponsor’s mark, with exemptions only for very light items. Countries that are signatories to the Vienna Convention on hallmarking recognise a shared Common Control Mark, which can simplify multi-country distribution, but confirming which countries in your specific distribution plan are signatories is a step worth taking before committing to a hallmarking approach.

The Practical Implication

A specification written for the UK market does not automatically clear France, and a specification cleared in Germany does not automatically clear the Netherlands. The hallmarking requirement needs confirming per destination country, in writing, before the order is placed — not assumed to be a single EU-wide standard.

Kimberley Process and Diamond Provenance

Rough diamonds moving internationally must be accompanied by a Kimberley Process Certificate confirming the shipment is conflict-free, with India’s Gem and Jewellery Export Promotion Council acting as the designated certifying authority for Indian rough diamond trade. This requirement applies specifically to rough, uncut diamonds — cut and polished stones leaving India are not covered by the Kimberley Process itself, though European buyers increasingly expect supply chain documentation covering the stone’s origin regardless, given growing retail-level interest in traceability.

Quality Consistency for Retail-Scale Orders

A single approved sample tells a buyer little about consistency across a production run of several hundred pieces. Caratage, stone clarity grading, and finish quality all carry natural variation between individual craftsmen, particularly in hand-set gemstone work. The workable approach is the same one that applies across Indian craft manufacturing generally: define an acceptable tolerance in writing before production begins, supported by a reference sample and, for higher-value orders, an independent grading report for key stones. Buyers who commit to volume before this is agreed in writing are the ones most likely to receive a technically compliant shipment that still generates disputes at the point of sale.

Frequently Asked Questions

Do I need a different hallmark for every EU country I sell into?

Not necessarily one hallmark per country, but you do need to confirm the requirement per country. Vienna Convention signatory states recognise a shared Common Control Mark, which can cover multiple markets with a single mark. Countries outside the Convention, or with their own registration requirements such as France and Spain, need separate confirmation before goods are sold there.

Is Indian-cut and polished jewellery subject to the Kimberley Process?

No. The Kimberley Process applies specifically to rough, uncut diamonds moving across borders. Cut and polished diamonds and finished jewellery are not covered by the scheme itself, though many European buyers now ask for supply chain documentation on stone origin as a separate commercial requirement, distinct from the legal certification obligation.

What is the real duty difference between loose stones and finished jewellery?

Loose gemstones and unset precious metal typically attract zero customs duty into the EU and UK, with VAT still applying. Finished jewellery under HS code 7113 generally attracts 2.5 to 4 percent duty in the EU and around 2.5 percent in the UK, in addition to VAT. Confirm the exact classification against the TARIC database before quoting a landed cost, since a product described inconsistently between quotation and customs declaration is a common cause of clearance delay.

Whether the product category is diamonds, gemstones, granite, or something else entirely, the underlying sourcing question is always the same: who is accountable if a specification is misunderstood between approval and delivery, and what happens when it is. See how the NexaCrest Order Standard structures accountability from specification lock through to post-delivery follow-up for a closer look at how that structure is applied in practice.