The Burmese Jadeite and Ruby Trades Are Distinctly Different, and Significantly Involve China and Thailand

		Burmese-Origin Jadeite Is Primarily Purchased, Processed, and Consumed by China

According to foreign jewelry industry representatives, jadeite generally is  mined in the northern Kachin state of Burma (fig. Burmese-Origin Rubies Are Largely Smuggled into Thailand, Yielding Little Revenue to the Burmese Regime, and Are Significantly Processed There

In contrast to jadeite, rough Burmese ruby stones are relatively small and  thus easy to transport and smuggle. Agencies Have Taken Steps to Prohibit Imports of Burmese-Origin Rubies, Jadeite, and Related Jewelry, but Have Not Shown That They Are Effectively Targeting These Imports

		Agencies Held Outreach Meetings with U.S. Agencies Have Made No Discernible Progress in Gaining International Support to Prevent Global Trade in Burmese Gemstones

		Strong Support and Cooperation of China and Thailand Are Important to Restrict Global Trade in Burmese-Origin Jadeite, Rubies, and Related Jewelry, but Highly Unlikely

China’s support and cooperation are critical if the United States  government hopes to prohibit international trade in Burmese jadeite and  jadeite jewelry. While agencies have published an interim final rule, they have not  developed specific audit guidance or initiated any postentry reviews of  importers’ records. In addition, there is little guidance to importers on  what constitutes verifiable evidence. Additional steps to implement this  rule, along with further improvements in the data collected on imported  rubies and jadeite, could contribute to an understanding of whether import  restrictions are effectively targeting Burmese-origin goods. With regard to the goal of restricting worldwide trade, the Department of  State submitted a required 60-day report to Congress, but the report had  little information on progress or the challenges involved in gaining  international support. Since that report, USTR has not requested a WTO  waiver and State has made no discernible progress in introducing a UN  resolution or negotiating a Kimberley-like process. Recommendations for Executive Action

In order to effectively implement the sections of the JADE Act prohibiting  the importation of Burmese-origin rubies, jadeite, and related jewelry  while allowing imports of non-Burmese-origin goods, we recommend that  DHS, in consultation with relevant agencies, develop and implement  guidance to conduct postentry reviews of importers’ records and provide  improved guidance to importers on the standards of verifiable evidence  needed to certify articles are of non-Burmese origin. 110-286), we assessed (1) the key characteristics of the trade  of Burmese-origin jadeite and Burmese-origin rubies; (2) the progress U.S.  agencies have made to restrict imports of Burmese-origin jadeite, rubies,  and related jewelry into the U.S. market; and (3) the progress U.S.  agencies have made in pursuing international actions, including (a)  seeking a World Trade Organization (WTO) waiver, (b) securing a United  Nations (UN) resolution, and (c) working to negotiate an international  arrangement—similar to the Kimberley Process—to prevent global trade  in Burmese-origin jadeite, rubies, and related jewelry. The JADE Act also requires GAO to submit a report to Congress assessing  the effectiveness of the implementation of this section of the act, including  any recommendations for improving its administration.
Why GAO Did This Study

Congress passed the Tom Lantos Block Burmese JADE Act in 2008 prohibiting the import of Burmese-origin jadeite, rubies, and related jewelry and calling for certain international actions. The act also requires GAO to assess the effectiveness of the implementation of this section of the act. This report assesses (1) key characteristics of the trade of Burmese-origin jadeite and rubies; (2) progress agencies have made to restrict imports of Burmese-origin jadeite, rubies, and related jewelry; and (3) the progress agencies have made in pursuing international actions. GAO reviewed and analyzed policy guidance, reports, and trade data and interviewed officials from the Departments of State (State), Homeland Security (DHS), other U.S. agencies, as well as U.S. and foreign jewelry industry representatives and foreign government officials.

What GAO Found

The Burmese jadeite and ruby trades are very different from one another and significantly involve China and Thailand. Burmese-origin jadeite is primarily purchased, processed, and consumed by China. Burmese-origin rubies are reportedly largely smuggled into Thailand, yielding little revenue to the Burmese regime, and are significantly processed there. U.S. agencies have taken some steps but have not shown that they are effectively restricting imports of Burmese-origin rubies, jadeite, and related jewelry while allowing imports of non-Burmese-origin goods. Some U.S. jewelry representatives said import restrictions constrain legitimate ruby imports. Agencies published an interim final rule, but DHS has not developed specific audit guidance or conducted any postentry reviews of importers' records. In addition, there is little guidance to importers on what constitutes verifiable evidence of non-Burmese-origin. Although agencies have begun to collect data on ruby and jadeite imports, further efforts could contribute to an understanding of whether restrictions are effectively targeting Burmese-origin imports. Agencies sent a required 60-day report to Congress, but it had little information on progress and challenges related to gaining international support to prevent trade in Burmese-origin rubies, jadeite, and related jewelry. Agencies have made no discernible progress in gaining such international support. Strong support and the cooperation of China and Thailand are important to restrict trade in these items, but highly unlikely. The Office of the United States Trade Representative has not requested a World Trade Organization waiver and State has not introduced a United Nations resolution, noting a number of countries would likely oppose a resolution. Finally, there have been no international meetings to negotiate a global arrangement restricting trade in Burmese rubies and jadeite similar to the Kimberley Process for restricting trade in conflict diamonds. Agency officials cited serious impediments to establishing such a framework.