For Chinese processing plants that export jewelry to overseas markets, 2026 marks a full escalation of compliance thresholds.
January 1, 2026, the European Union for imported polished diamonds, the new traceability provisions came into force. Under the provision, traders importing polished diamonds of 0.5 carats and above to the EU must sign a "due diligence statement on the origin of diamonds" confirming that the diamonds provided by their suppliers are not from Russia and can provide verifiable traceability evidence. This provision is an extension of the 16th round of EU sanctions against Russia, which requires that imported rough diamonds of mixed origin be accompanied by a Kimberley Process certificate that clearly lists the countries of origin of all minerals.
Meanwhile, Europe's ESG (environmental, social, and governance) regulations are tightening further. According to the EU Directive on Business Sustainability Reporting, compliance requirements have been extended from January 1, 2026, to small and medium-sized enterprises with between 10 and 250 employees, meaning that most businesses in the jewelry industry will be subject to the regulation and will need to track and report environmental, social and governance data.
In terms of supply chain transparency, the Kimberley Process achieved 99.8 per cent conflict-free certification of rough diamonds globally in 2026, but the market's demand for higher standards of traceability is still on the rise. In its Business Integrity Guide issued in 2025, the World Jewelry Federation has identified four key dimensions, namely, anti-money-laundering and financial transparency, marketing ethics and the risk of greenness, consumer disclosure and product integrity, and technology and transparency tools, which provide a framework for industry self-regulation.
In terms of supply chain transparency, the Kimberley Process achieved 99.8 per cent conflict-free certification of rough diamonds globally in 2026, but the market's demand for higher standards of traceability is still on the rise. In its Business Integrity Guide issued in 2025, the World Jewelry Federation has identified four key dimensions, namely, anti-money-laundering and financial transparency, marketing ethics and the risk of greenness, consumer disclosure and product integrity, and technology and transparency tools, which provide a framework for industry self-regulation.
What does this mean for China's custom jewelry processing plants,
which are geared to overseas markets?
The traceability of the supply chain is changing from a "bonus item" to a "pass". Companies that are unable to provide a complete traceability chain face real barriers to entry into the EU market. The Kiss Diamond Custom Jewelry Processing Factory has established a traceability system for the whole chain from the purchase of raw materials for cultivating diamonds to the export of finished products, and each batch of products can provide a declaration of origin and the relevant compliance documents to ensure compliance with EU import standards.
ESG compliance is becoming a screening standard for international buyers. Large retailers and brands increasingly prefer to work with suppliers with ESG-certified and transparent supply chains, and Kiss Diamond Jewelry have begun to introduce supply chain management processes that conform to the framework of the Responsible Jewelry Commission and commit to using environmentally friendly materials with traceable sources.
Under the background of the stricter supervision of global jewelry trade, Kiss Diamond Jewelry Co., Ltd. is committed to providing stable and reliable customized jewelry processing services for overseas partners. This is not only a challenge, but also an important opportunity for China's jewelry manufacturing to move towards high-end and branding.
