The American Gem Trade Association (AGTA) recently amended its Code of Ethics and Principles of Fair Business Practice.

"For thirty five years, AGTA's Code of Ethics has served as a model for the entire industry", said AGTA CEO Douglas Hucker. “And as a living document it was necessary and appropriate for us to amend them to strengthen our commitment to due diligence in the marketplace and to reflect our leadership role in the global efforts in supply chain integrity."

It is the practice of the AGTA to annually have its members reaffirm their commitment to these principles by signing the Code of Ethics.

The amendments were to Section 7 which deals with “Due Dilligence”.  This section requires members to seek full written disclosure of known treatments and enhancements of every gemstone from their vendors and suppliers.   It also recommends that “any new, unknown or questionable material” if brought to the marketplace by any AGTA member, the member should conduct due diligence to ascertain the nature of that element including by submitting it to a “reputable laboratory for detailed analysis, which shall be contained in a written report issued to the member”.

AGTA also urges members that to the best of their ability they should ascertain that the gems they deal in are mined responsibly with an approach “for protecting and restoring the environment”;   that no child labour has been used in the processes; that health of all workers involved  is protected and that the gemstones are obtained legally and not through unalawful activities like smuggling.

Now, the AGTA proclaimed, “In addition to the amended Code of Ethics the AGTA established Source Disclosure language that is to be incorporated into all commercial documents. The language is as follows:

"Seller has no actual knowledge or other reason to believe that the "gem materials' herein were not imported or traded through sources committed to honoring all applicable laws and regulations of both the United States and their source country. Seller believes based on actual knowledge and/or written guarantees provided by the supplier/exporter that the proceeds from sale of the "gem materials" herein were used for legitimate purposes."”

At the Gemstone Industry Laboratory Conference (GILC) meeting at the AGTA GemFair™ Tucson, ICA President Benjamin Hackman had expressed the support of the ICA Board of Directors for the new due diligence language as well as the Source Disclosure language.  The ICA has also requested for permission to “adopt the AGTA Code of Ethics as a basis for their own Code”.

Newly elected AGTA President Jeffrey Bilgore commented: "This is another example of the leadership role AGTA fulfills in our industry and an excellent opportunity for our two associations to work together to make a difference in the supply chain of our products and to protect the integrity of our businesses.”