Diamond jewellery, once reserved for the elite, has gradually become more accessible to a wider population in Bangladesh due to its easy availability. To meet this demand, shops across Dhaka and other major cities are offering a variety of diamond jewellery designs.
However, not a single carat of diamonds has been legally imported in recent years, the National Board of Revenue (NBR) has revealed. Concerns have arisen that diamonds are either entering the country through unauthorised channels or fake jewellery is being sold as Bangladesh neither produces natural diamonds nor has a lab-grown diamond industry.
Customs records show that only 2.160 kg of diamonds have been imported in four consignments, strictly for industrial use, over the past four years (2020 to present). Businesses are entitled to import unworked or roughly cut diamonds using HS (Harmonised System) code 71042100, specifically for jewellery making. This international classification system, developed by the World Customs Organization (WCO), ensures proper categorisation of goods for trade tariffs and customs regulations.
However, no diamonds for ornamental use have been imported during this period, raising concerns over the legality of diamond jewellery currently on the market.
Sector insiders report that over 200 diamond jewellery traders operate across Bangladesh, with jewellery prices determined by four key factors— carat, colour, clarity and cut.
Despite growing demand for diamond jewellery, the country lacks the necessary verification tools to distinguish genuine diamonds from counterfeits, according to NBR officials. They also revealed that some diamond jewellery enters the country through "baggage rules," avoiding import duties.
NBR officials further said that corrupt traders use HS code 701810 to import glass beads, with 200 to 300 kg brought in monthly via Dhaka Customs House for use in fake diamond jewellery. Through these methods, corrupt traders are reportedly making significant profits from illegal diamond dealings, while consumers are being misled, NBR officials added.
They suggested that consumer rights organisations should advocate for the installation of diamond verification devices in major cities.
Officials from the VAT Audit, Intelligence & Investigation Directorate and the Central Intelligence Cell (CIC) further alleged that Dilip Kumar Agarwala, managing director of Diamond World, who is now in police custody, evaded Tk 25,200 crore in taxes over the past 15 years.
They suspect he sold glass-made ornaments disguised as diamonds, as no diamonds were legally imported during that period. The officials added that Agarwala did not pay VAT during the 15 years of Awami League rule, despite sales of diamonds worth Tk 4-5 crore from Diamond World showrooms.
Diamond World, one of the longest-standing diamond jewellers in the country, operates about 30 showrooms, including in Dhaka.
Ghulam Rahman, president of the Consumers Association of Bangladesh (CAB), told The Business Post that since diamonds are neither produced nor mined in Bangladesh, the absence of import records suggests smuggling. He urged customs intelligence and law enforcement to investigate those involved to uncover the true situation.
“Many consumers are being cheated daily due to the absence of proper monitoring and verification tools and this must be addressed immediately,” Ghulam Rahman added.
Md Reponul Hasan, chairman of the Standing Committee on Anti-Smuggling and Law Enforcement at the Bangladesh Jeweller’s Association (BAJUS), highlighted at a press conference in June that customs duty evasion has become rampant due to illegal diamond imports.
“The tax on importing rough diamonds is 89%, while the tax on polished diamonds is around 151%. To avoid these high duties, a significant quantity of diamonds is smuggled into the country,” he said at the press briefing.
The diamond jewellery market in Bangladesh is valued at Tk 11,000 crore, with over 200 traders operating nationwide, Reponul Hasan added.
