Moaaz Manzoor

The federal government will establish a National Warranty Office (NWO) to standardize gemstone inspection, valuation, traceability, and certification under the National Policy to Realize Pakistan’s Gemstone Potential, to improve export credibility and address long-standing weaknesses in customs clearance procedures.

According to the policy document prepared by the Ministry of Industries and Production, the absence of a credible and specialized inspection and appraisal mechanism has been a major factor discouraging gemstone exports through formal channels. The document states that gemstones require specialized technical expertise for identification and valuation, which is limited within Pakistan Customs, leading to inconsistent assessments, delays, and disputes during export clearance.

The policy notes that existing customs procedures lack a clearly defined methodology for gemstone inspection and valuation. As a result, exporters often face arbitrary treatment of consignments, which undermines confidence in formal export channels. The document further highlights that the absence of an authenticated valuation system has also constrained participation by international courier companies, restricting secure shipment options for high-value gemstone consignments.

Under the new policy framework, the National Warranty Office will operate under the proposed statutory gemstone authority and serve as the central body responsible for inspection, valuation, certification and traceability of gemstone exports. Initially, NWO sub-offices will be established at major airports in Islamabad, Lahore, Karachi and Peshawar, as well as at selected sea and dry ports, to serve existing gemstone trade clusters.

The policy outlines a standardized export process to be administered by the NWO. Exporters registered with the proposed authority will submit export documentation electronically through the Pakistan Single Window. Each gemstone consignment will be assigned a unique batch identification number and logged into a national registry. Joint inspection and valuation will then be carried out by qualified NWO valuers in coordination with Pakistan Customs appraisers.

As part of the process, consignments will be photographed for record purposes, and valuation will be conducted using established benchmarks. For higher-value cut gemstones, laser inscription will be applied to capture unique identification details, strengthening traceability and reducing the risk of disputes or substitution. Once inspected and certified, consignments will be sealed using tamper-evident packaging bearing the NWO seal and a QR code.

The policy states that certified consignments may be exported through air cargo, secure courier services or hand-carried by foreign-bound passengers, following prescribed procedures. In the case of hand-carry exports, exporters will collect sealed consignments from designated commercial desks at airports after completing check-in formalities, ensuring compliance with security and customs requirements.

The NWO will also manage procedures for temporary exports, including shipments sent abroad for certification, exhibition, or buyer inspection, as well as the re-import of returned consignments. A defined return protocol will allow duty- and tax-free re-entry of verified gemstones, reducing risks for exporters and encouraging formal trade practices.

According to the policy, disputes between exporters and the NWO over inspection or valuation will be resolved through a two-stage mechanism. Initial disputes will be reviewed by panels of qualified gemologists and valuers, while unresolved cases may be referred to internationally recognized experts or auction houses for final determination.

The document states that the establishment of the National Warranty Office is intended to restore trust among exporters, buyers, banks and regulators. By providing a consistent and transparent certification framework, the NWO is expected to facilitate formal exports, reduce disputes and improve Pakistan’s standing in international gemstone markets.

Credit: INP-WealthPk