NATURAL OR CULTURED PEARLS, PRECIOUS OR SEMI-PRECIOUS STONES, PRECIOUS METALS, METALS CLAD WITH PRECIOUS METAL, AND ARTICLES THEREOF; IMITATION JEWELLERY; COIN

Chapter 71 of the EU Customs Tariff covers natural and cultured pearls, precious and semi-precious stones, precious metals, jewellery and coins. It is one of the most valuable chapters in terms of import value. CN codes range from heading 7101 (natural and cultured pearls) to heading 7118 (coins). Natural and cultured pearls (7101) include saltwater and freshwater pearls. Diamonds (7102) are divided into industrial and gem-quality diamonds, both rough and worked. Precious and semi-precious stones (7103) include rubies, sapphires, emeralds, topazes, amethysts and others. Synthetic and reconstructed stones (7104) constitute a separate category. Gold (7108), silver (7106), platinum (7110) and other precious metals are classified in unwrought form, as semi-manufactured products and finished articles. Jewellery of precious metals (7113) includes rings, earrings, necklaces and bracelets. Imitation jewellery (7117) made of base metals clad with precious metal constitutes a separate category. Coins (7118) include collector and circulating coins of gold, silver and other metals. Chapter 71 is subject to specific regulations concerning the assay of precious metals and the certification of stones (the Kimberley Process for diamonds).

Customs duty rates on goods in Chapter 71 are mostly low or zero. Natural and cultured pearls (7101) are subject to a 0% duty rate. Rough and worked diamonds (7102) are subject to a 0% rate. Precious and semi-precious stones (7103) have rates ranging from 0% to 0.5%. Gold, silver and platinum in unwrought form are subject to a 0% rate. Jewellery of precious metals (7113) is subject to rates from 2.5% to 4%. Imitation jewellery (7117) has higher rates from 2.5% to 4%. Coins (7118) are subject to a 0% rate. The low duty rates reflect the significant role of precious metals as financial assets. VAT at 23% is charged in addition to customs duties.

Classification within Chapter 71 requires precise distinction between natural and synthetic stones, natural and cultured pearls, and precious and base metals. Jewellery of precious metals is classified under heading 7113, while imitation jewellery falls under 7117. For diamonds, the key distinction is between gem-quality and industrial stones. The import of rough diamonds is subject to certification under the Kimberley Process. Articles of gold require documentation confirming the metal assay.