Freight is where jewelry margins quietly leak. Misclassified HS codes trigger inspections, underinsured shipments turn a lost carton into a write-off, and duty surprises at destination can erase the FOB saving you negotiated for weeks. A clean shipping setup is a procurement deliverable, not an operations detail.
Classify honestly and specifically
Precious metal jewelry classifies in heading 7113, imitation jewelry in 7117. The distinction is legal, not stylistic: vermeil and gold-filled pieces are precious-metal classifications; plated brass is imitation. Within 7117, the material subheadings (base metal, plastics) affect duty rates. Classification is the exporter’s declaration and the importer’s liability; put the HS code on the commercial invoice and keep it consistent across shipments.
Declare value correctly
Customs value is the transaction value: your FOB price plus, depending on Incoterms, freight and insurance. Undeclaring to save duty exposes you to penalties and voids the insurance you thought you had. On high-value consignments, an accurate declaration plus proper insurance costs less than one seizure.
Insure at invoice plus freight, named perils understood
Cargo policies for jewelry are specialty products: confirm whether the policy covers theft from a sealed container, and whether warehouse-to-warehouse includes the destination customs zone where a large share of jewelry losses occur. Standard marine cargo terms often exclude or cap precious cargo; buy the jewelry rider.
| Item | Standard | Why |
|---|---|---|
| HS code | 7113 vs 7117 correctly applied | Duty rate and inspection risk |
| Incoterms | FOB factory or DAP destination | Defines who insures which leg |
| Insurance | Invoice + freight + 10% | Standard cargo sum insured basis |
| Packing | Plain outer cartons | Labelled boxes advertise contents |
| Documents | Commercial invoice, packing list, certificates | Precious metals may need extra docs |
Choose the incoterm that matches your control
FOB is the trade default because it puts freight choice in your hands and keeps the factory’s quote comparable. DAP makes sense when you have a freight agreement and the factory has no export strength. Avoid EXW for jewelry: it pushes export formalities onto your side in a country whose procedures you do not know.
Frequently asked questions
Sea for planned replenishment, air for the margin-critical top-ups. Jewelry is light and high-value, so air freight is a smaller percentage of landed cost than for most goods, typically 2-5% of invoice value, which makes it viable when stockouts threaten a season. Sea is the default where the calendar allows 30-40 days.
Buy a jewelry-specific cargo rider at invoice value plus freight plus ten percent. Standard marine cover often caps or excludes precious cargo, and a large share of losses happen in the destination customs zone, so confirm warehouse-to-warehouse scope including that zone. Ship in plain outer cartons; labelled boxes advertise contents.
