How Wholesale Diamond & Gemstone Buying Works in the US: A Jeweller's Guide

The US has no federal VAT or GST of any kind — the single biggest structural difference from almost every other major gem-trading country. See Wholesale vs retail: how the gem trade actually prices for how Chaos defines a genuine wholesale price; this piece covers the US-specific tax, customs and reporting mechanics that sit underneath it.

Sales tax is state-level, and resale certificates defer it

There is no national sales tax. Each state sets its own rate, and several (Delaware, Montana, New Hampshire, Oregon) charge none at all. A dealer buying stock to resell — not to use or keep — can issue a resale certificate to the seller and avoid paying sales tax at that point in the chain; tax is then collected once at the final retail sale. Using a resale certificate for a stone you intend to keep for yourself isn't compliant, and a seller who doesn't collect tax without a valid certificate on file carries the liability if audited.

Most loose diamonds clear customs duty-free

Under the Harmonized Tariff Schedule (Chapter 71), most unmounted, unworked diamonds and many loose gemstone categories carry a general duty rate of free. Exact treatment varies by the specific HTS subheading and by country of origin — origin-specific surcharges have applied to particular countries at various points and change without much notice, so a dealer quoting a landed cost should confirm the current rate against the live HTS rather than a remembered figure.

Large cash deals trigger federal reporting, not a licence

Any US trade business receiving more than $10,000 in cash in a single transaction (or linked transactions) must file IRS/FinCEN Form 8300, identifying the payer. Separately, dealers in jewels, precious metals and stones fall under the Bank Secrecy Act's anti-money-laundering framework, with their own registration and monitoring obligations once certain thresholds are met. Neither of these is unique to gems, but both surprise overseas buyers used to more informal cash norms elsewhere.

Rough diamonds need a Kimberley Process certificate; polished ones don't

Like most participating countries, the US requires a Kimberley Process certificate for rough diamond imports and exports, tracking stones back to their country of origin before cutting. Once a diamond is cut and polished, it moves outside that certificate requirement — the paperwork that matters at that stage is the grading certificate and the dealer's own invoice, not a KP form.

What this means for a jeweller sourcing internationally

None of this changes what makes a stone worth buying — it explains why a legitimate US dealer's invoice and tax paperwork look the way they do, and why landed cost can shift for reasons that have nothing to do with the stone itself. For the consumer-facing version of what to check before buying, see How to buy a loose diamond online without getting lost.

FAQ

Do I pay sales tax buying wholesale in the US?

Not if you're a registered reseller with a valid resale certificate on file with your supplier — tax is collected once, at the final retail sale, not at every step in the chain.

Are loose diamonds subject to US import duty?

Most clear under Harmonized Tariff Schedule Chapter 71 at a general rate of free, though the exact subheading and country of origin can change that — always check the current HTS rather than assume.

Does the Kimberley Process apply to the polished diamonds I'm buying?

No — the Kimberley Process certificate requirement applies to rough diamond imports and exports. Once a diamond is cut and polished, a grading certificate and the dealer's invoice are what matter.

Related reading

• Wholesale vs retail: how the gem trade actually prices
• How UK Wholesale Diamond & Gemstone Buying Actually Works
• How to buy a loose diamond online without getting lost