JULY 20, 2017

After four years of discussion and deliberation, in May 2017 the European Council and European Parliament provided overwhelming approval to Regulation (EU) 2017/821, which will regulate minerals from conflict areas into the European Union. The new legislation will significantly impact the operating procedures of jewellery companies in the European Union, as well as companies that supply them from outside the EU.

On Sunday, September 24, 2017, CIBJO, the World Jewellery Confederation, and the Italian Exhibition Group, will present a seminar to provide members of the jewellery trade background on the new legislation and its impact, and present strategies for incorporating the new regulations in their businesses. The seminar will take place at Fiera di Vicenza on the second day of the VICENZAORO September jewellery show, from 10:30 AM to 1:00 PM.

The new EU regulation imposes certain due diligence obligations upon companies importing gold, tin, tantalum or tungsten from conflict-affected and high-risk areas. It becomes the third major regulatory framework impacting the jewellery industry, joining the Kimberley Process, which focuses on the rough diamond trade, and the Section 1508 of the United States’ Dodd Frank Act, which also regulates the 3Ts and gold.

While the legislation has already been approved, the EU lawmakers provided a four-year phase-in period, which gives companies until January 1, 2021, to adopt the due diligence and other procedures that are part of its requirements. The EU also ruled that the regulation will apply to all metal and mineral importers whose annual import volumes are above a threshold amount, with the threshold set so at least 95 percent of the total imported volumes into the region of each metal and mineral will be subject to the regulations. This means that companies only importing small amounts of gold will be exempted from the provisions of the legislation, although it is advised that all companies become familiar with its requirements.

According to the new law, European importers of gold above the threshold will need to apply due diligence steps that must be consistent a due diligence scheme that is approved by the European Commission. That could include the chain of custody standards of the Responsible Jewellery Council or the London Bullion Market Association.

The seminar in Vicenza on September 24 will feature a blue-ribbon panel of expert speakers, representing the European Union, the European precious metals industry, industry standards-setting and monitoring organisations. Presentation will be made in English, and a simultaneous translation into Italian will be provided.

“This is an extremely important seminar,” said Gaetano Cavalieri, President of CIBJO. “The new EU regulations are going to affect a substantial number of the jewellery companies doing business in Europe, and it imperative that they be properly prepared. Our goal is to provide a them with an initial roadmap, and to present the various alternatives that they will have at their disposal.”
The seminar will be the latest in a series of educational events organized by CIBJO and the Italian Exhibition Group, which is part of their programme, endorsed by the United Nations Economic and Social Council (ECOSOC), to support Corporate Social Responsibility and sustainability in the jewellery sector.

JUNE 19, 2017

CIBJO President Gaetano Cavalieri has met in Bangkok with Mrs. Apiradi Tantraporn, the Minister of Commerce of the Kingdom of Thailand, to discuss preparations for the 2017 CIBJO Congress, which will take place in the city in November, and also ways in which CIBJO and the congress can assist in enhancing the role of Thailand in the international jewellery and gemstone business.

The 2017 CIBJO Congress is being hosted by the Department of International Trade Promotion (DITP) and the Gem and Jewelry Institute of Thailand (GIT), both of which fall under the jurisdiction of the Thai Ministry of Commerce. The meeting with the minister was also attended by Rachane Potjanasuntorn, Chairman of GIT, and Somdet Susomboon, Deputy Director General of DITP, as well as senior members of the Thai team that is helping organise the event.

During the meeting, Dr. Cavalieri expressed his wish that the congress will assist Thailand in reclaiming its position as a leading trade and manufacturing centre in the international gemstone and jewellery trade. Not only should the country serve as the epicentre of the business in the ASEAN block, which by itself is home to an increasingly affluent population of more than 600 million, but it should emphasize its specific Thai identity, skill and expertise, rather than operating predominantly as production service-provider for companies from other countries, he stated.

The Minister of Commerce thanked CIBJO for its support, and stressed that her ministry and the Thai government are instituting a programme to enhance both the strategic position and value of the Thai gemstone and jewellery sector. The holding of the 2017 CIBJO Congress in Bangkok is part of that effort, Mrs. Tantraporn stated.

The 2017 CIBJO Congress will take place in Bangkok, Thailand, November 5-7, 2017, with pre-congress meetings beginning on November 2. The World Ruby Forum, which is being organised by GIT in conjunction with the congress, will take place November 4. The main venue for the CIBJO Congress and the official congress hotel will be the Shangri-La Bangkok.

As the official venue for the meeting of the CIBJO Assembly of Delegates, the CIBJO Congress will gather in Bangkok the members of national jewellery and gemstone associations from more than 40 countries and representatives of many of the industry’s most important commercial bodies. The congress also serves as a forum for CIBJO’s professional commissions, and is the venue at which its Diamond, Coloured Stones, Pearl, Coral, Precious Metals and Gemmological Blue Books are discussed and updated. The CIBJO Congress is also where the programme of World Jewellery Confederation Education Foundation (WJCEF), relating to responsible and sustainable activities in the industry, and CIBJO’s ongoing cooperation with the United Nations and its development programme is reported upon.

CIBJO President Gaetano Cavalieri (left), signing the memorial book for King Bhumibol Adulyadej of Thailand, who died in October 2016 and still is officially being mourned, during his visit to the Ministry of Commerce in Bangkok.

JUNE 14, 2017

The jewellery industry’s challenge in coming years will be to position itself as a model of sustainable development, thereby appealing to a new generation of consumers, said CIBJO President Gaetano Cavalieri, speaking at the 16th Paris Gemmological Rendez-Vous on June 12. The event was hosted by the Association Française de Gemmologie and chaired by its president, Didier Giard.

One of the reasons that CIBJO has been so firm in its support of the Paris Gemmological Rendez Vous is the commitment that the event has shown in promoting issues related to sustainability and Corporate Social Responsibility, and various initiatives such as the World Day of the Sustainable Management of Gems Mines and Pearl Farms, Dr. Cavalieri said.

“Despite the inter-governmental controversies of the past two weeks, the City of Paris should be proud of its now historic association with the principles of sustainability, not only in terms of the reduction of greenhouse gas emissions, but also in the effort to create a better world for all of our planet’s citizens, and especially those living in countries and regions that are less developed than we are in the West,” the CIBJO President stated, in his address to the gathering. “I would note that CIBJO strongly supports a vigorous carbon reduction drive in the jewellery and gemstone sector, and indeed for four years now we have been completely carbon neutral. Furthermore, we are operating a programme to promote carbon neutrality throughout our industry, and we will be happy to work together with any of you looking to make a similar move.”

“Before coming here today I skimmed through the day’s agenda, and looked at the various countries that will be featured during the various presentations at this gathering. They include Fiji, Afghanistan, Mozambique, Madagascar, Ethiopia and Botswana. In terms of the UN Human Development Index, only one – Fiji – is listed in the top 50 percent of the 188 countries listed, holding the 91st spot. Botswana, which is located at 108, is described as a medium development country. But the remaining four are all considered low human development countries, with Madagascar in 158th place, Afghanistan in 169th place, Ethiopia in 174th place and Mozambique in 181st place. It is clear that the gemstone and jewellery has ability to play an absolutely critical role in the economic and social development of these countries,” he said.

“They say that in the 21st Century gemstone and jewellery market, millennial consumers want the products they buy to have social as well as monetary value. We are in a position to provide them with just that,” Dr. Cavalieri noted.

CIBJO President Gaetano Cavalieri (right) together with Didier Giard, President of Association Française de Gemmologie, the organiser of the 16th Paris Gemmological  Rendez-Vous.

JUNE 7, 2017

Gaetano Cavalieri, the President of CIBJO, has joined a high-level delegation from the Republic of Fiji, led by the country’s Prime Minister, Frank Bainimarama, at the Oceans Conference at the United Nations in New York, to outline and promote the development of a sustainable pearl farming sector in Fiji. The project will work to fulfil UN Sustainable Development Goal 14, relating to the health of the oceans, seas and marine environments, as well as provide sustainable economic and sustainable opportunities for the country’s citizens.

Among the members of the Fijian delegation, which presented the project at an official side event during the Oceans Day Conference, were the country’s Minister for Fisheries, Semi Koroilavesau, and Justin Hunter, Chairman of the Fiji Pearl Association, with which CIBJO has worked to formulate a plan for the development of a national, community-based, pearl farming industry that will enhance the effectiveness of locally managed marine areas, integrated coastal management, and land and sea management programmes, while also creating meaningful employment and income-generating opportunities for communities involved in pearl farming.

The Oceans Conference, which is being co-hosted by the governments of Fiji and Sweden and coincides with World Oceans Day, is intended to advance the conservation and sustainable use of the marine environment, reversing the decline in the health of the earth’s oceans and seas.

“There is one sector of the jewellery industry, where both the product and business associated with it are potentially sustainable, and that is cultured pearls,” said Dr. Cavalieri in his address to the gathering. “For unlike a mine, which has a finite life span, a pearl farm can continue producing indefinitely, on condition that it is responsibly managed. In other words, we have an asset that can be renewed and sustained, which in turn can act as a source of sustainable economic and social opportunity.”

“The Public Private Partnership that is being proposed in Fiji is an example of what a successful pearl industry can aspire to achieve. It offers the promise of building an industry, from the grass roots up, founded on a sustainable and valuable product that is supported by responsible and sustainable environmental practices, which in turn generates sustainable economic and social opportunities for the country and its inhabitants,” Dr. Cavalieri continued.

“Built into the equation is a very positive element of co-dependency. Just as the potential economic and social benefits to the country are dependent upon a viable business model, the business model requires an economic environment in which all stakeholders feel they are benefiting. The one goes hand in hand with the other. And this is all only possible over the long-term if the marine environment is responsibly managed. It is the very epitome of a win-win-win situation,” he added.

The Fijian plan proposes the development of community-owned pearl farms, which will become the stewards of the oceans, while providing opportunities for coastal villages, and especially for woman and young people. The Fijian pearl oyster is officially classified as an indicator species and is well known to be environmentally sensitive. Any decline in water quality has a direct impact on the oyster’s health, reducing the quality of the pearl that is produced. Strict environmentally responsible standards are necessary, therefore, to ensure the economic viability of the project.

A view of the side event at the Oceans Day Conference at United Nations headquarters in New York, where the Fijian plan for a sustainable, community-based pearl farming industry was presented.

MAY 24, 2017

Gaetano Cavalieri, the President of CIBJO, the World Jewellery Confederation, has had a personal audience with Pope Francis at Vatican City in Rome. It took place on May 20, following a three-day conference of the Centesimus Annus pro Pontifice Foundation, where business, academic and political leaders discussed ethical challenges and strategies, and at which Dr. Cavalieri was one of the speakers.

The private audience took place in the Clementina Hall of the Apostolic Palace, after a Roman Catholic mass presided over by Pope Francis.

“The fight against poverty is not merely a technical economic problem, but above all a moral one, calling for global solidarity and the development of more equitable approaches to the concrete needs and aspirations of individuals and peoples worldwide,” Pope Francis said, speaking to the conference’s participants, before meeting with each one personally.

“As Saint John Paul II frequently insisted, economic activity cannot be conducted in an institutional or political vacuum, but has an essential ethical component,” Pope Francis continued. “It must always stand at the service of the human person and the universal common good.”

The Centesimus Annus pro Pontifice Foundation is an international association of business and professional leaders from across the Catholic world, dedicated to infusing the ethical and social doctrine promoted by the church in economic policies and practices. Its 2017 conference was entitled “Constructive Alternatives in an Era of Global Turmoil,” and in the words of Pope Francis, “explored from various standpoints the practical and ethical implications of the present world economy, while at the same time laying the foundations for a business and economic culture that is more inclusive and respectful of human dignity.”

Speaking during the second day of the conference, Dr. Cavalieri focused his presentation on the fight against human trafficking and corruption, noting that those who are most vulnerable are the weakest members of society in conflicted regions. The business community’s moral obligation is to affect positive change at the grass roots level in such places, he insisted.

“We should help such people develop in the lands of their origin, so that they may integrate into the world,” Dr. Cavalieri said. “Let us examine what are the most important elements that afflict underdeveloped economies and their governments, especially where government is corrupt and the enforcement of law is optional.”

Pope Francis together with participants in the 2017 Centesimus Annus pro Pontifice Foundation conference in the Clementina Hall of the Apostolic Palace in the Vatican.

MAY 8, 2017

CIBJO President Gaetano Cavalieri has met with Antonio Tajani, President of the European Parliament, and discussed the recently approved Conflict Minerals Regulations approved by the EU legislature in Strasbourg, as well as issues related to the taxation on jewellery imported from the Europe Union.

The meeting took place in Arezzo, Italy, on May 6, on the opening day of the OroArezzo trade fair, which was inaugurated by Mr. Tajani.

The EU Conflict Minerals Regulation was approved on March 16 by a massive majority in the European Parliament, and received the green light from the European Council on April 3. It will be phased in gradually, and become fully applicable on January 1, 2021, with the intention being that companies use the interim period to adapt to its requirements.

The new regulations primarily affect all but the smallest importers of gold, tin, tantalum and tungsten, and also refiners and smelters of the minerals within and outside the EU. Not focused on any specific geographic region, they mandate supply chain due diligence from all areas of risk, including a five-step framework for its conduct, which parallels the OECD Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas.

By the end of 2017, the commission should be issuing guidelines on the identification of conflict-affected and high-risk areas from which the relevant minerals are sourced. A list of such areas will be compiled and regularly reviewed by external experts designated by the European Commission, which also intends to produce a global list of responsible refiners and smelters.

During their discussions, Dr. Cavalieri expressed CIBJO’s intention to work together with the European Union. CIBJO, he said, is coordinating together with other representative bodies in the European jewellery industry, and they plan to liaise with the EU to ensure that the regulations are adopted successfully by all sectors of the trade. CIBJO, he stressed, is also committed to defending the integrity of all supply chains in the industry, including those associated with diamonds, coloured gemstones, pearls and coral.

Dr. Cavalieri also urged the Mr. Tajani to work with the jewellery industry to ensure fair reciprocal tax and tariff rates when jewellery is imported and exported. It was agreed that these issues will be discussed further during an official meeting between the EU and a CIBJO-organised delegation.