On July 27, 2007, members of the jewelry industry met with representatives
of the U.S. Nuclear Regulatory Commission (NRC) in Rockville Maryland.
The meeting was called to discuss NRC compliance issues concerning irradiated
gemstones, including blue topaz.

Published September/Octoer 2007

By Stuart M. Robertson, GG

Acting on a complaint earlier this summer, the NRC informed retail jewelers that they may be selling blue topaz in noncompliance with NRC regulations. The NRC letter also purportedly requested the names of the retailers’ blue topaz suppliers and producers. At issue is the ability of jewelers to provide the required documentation that the stones have been produced or tested by a NRC licensed facility. Since it is now being widely reported that no such licensed facility is currently servicing the U.S. gem industry, it would appear that the NRC concerns are well founded.

Background
Topaz commonly occurs in yellow, brown and colorless varieties. The popular blue varieties that sell with the trade names of Swiss and London blue, among others, all result from irradiation treatment. These stones can be treated using neutrons in a nuclear reactor, or using electron excitation in a linear accelerator. Using the nuclear reactor creates a potential that the resulting material may possess dangerous levels of radiation, hence the NRC regulations regarding treatment and distribution of such material. (For further details on the treatment of blue topaz refer to the article, Red Hot and Blue Irradiated Blue Topaz posted on GemGuide advisor Pala International’s website www.Palagems.com.)

When considered as a single unit, it is easy to lose sight of the importance of blue topaz to many retail jewelers. True, it is an inexpensive stone available in large quantities. But blue topaz has consistently placed in the top ten best selling colored gemstones on Colored Stone Magazine’s annual survey. At wholesale prices of $2 to $8 per carat and can sometimes be found for less than $1 per carat, blue topaz offers one of the strongest margins of all gemstones products. One recent statistic put annual blue topaz retail sales at more than one billion dollars. The stone also has a wide distribution network of Internet-based sellers, large discount retailers, TV markets, and traditional brick-and-mortar jewelry stores. The popularity of blue topaz has been undeniably strong for a long time.

The Issues
In 1988, the NRC outlined for the jewelry industry the regulations governing the import and distribution of irradiated gems. These requirements were reiterated in a NRC Information Notice dated September 25, 1990, entitled Requirements for Import and Distribution of Neutron-Irradiated Gems. The notice is available on the NRC website www.NRC.gov. Those wishing to read the three page document can visit the NRC website and type 90-62 into the search window. The following excerpts were retrieved from that document.

“…Neutron-irradiated gems contain small quantities of radioactive byproduct material. A special NRC license is required for distribution of such gems to unlicensed persons (such as gem dealers, wholesalers, and consumers)… Licensed distributors must have radiation measurement and quality control procedures for ensuring that all gems released to the public are below the radioactivity limits specified in 10 CFR 30.70. The distributors must disclose to their customers that gems are neutron-irradiated. The licenses authorize distribution of cut, finished gems only, because radiation exposures associated with cutting and grinding gems are potentially much higher than those incurred through normal consumer use.”

Obviously the NRC is concerned with the potential for gems treated with nuclear material to become radioactive. The NRC’s reach is long. It also has provisions regulating products produced overseas. Concerning imported gems the NRC has defined under what conditions neutron-irradiated gems may be imported into the U.S. The requirements are that “The importer must possess a valid NRC or state license to possess the gems.” Or, “The gems were previously distributed in the U.S. under the terms of a valid NRC license authorizing distribution to unlicensed (exempt) persons, and later exported. (Gems that may have been irradiated and exported without going through a licensed distributor may not be imported by unlicensed persons.)”

Wholesale (unless they are the initial distributor) and retail sellers are not required to be licensed to sell irradiated gems. However, the NRC offers the following advice to retailers dealing with gem materials that are commonly irradiated such as blue topaz, “Require suppliers to identify and label their gems as neutron-irradiated, accelerator-produced, or unirradiated. If the gems are neutron-irradiated, request documentation that the products have been produced in accordance with NRC regulations.” This would include obtaining a copy of the name and license number of the licensed distributor/importer. As there are currently no licensed producers in the U.S., had the industry been following this advice we would likely have exposed this issue years ago.

Although the regulations specifically for irradiated gems have been in place for nearly two decades, a generation of jewelers and dealers have entered the market apparently without knowing that these requirements existed. Though noncompliance with the NRC regulations is a serous issue and as such a recall of blue topaz has not been ruled out, noting that the NRC investigation was triggered by noncompliance concerns and not specific incidence of injury is important. There is NO indication that blue topaz trading in the market poses a health concern, but that is not the point. The regulations are in place for a reason and it is incumbent on our industry to operate within them for the safety of suppliers, sellers and consumers alike. The oversight appears to have at least in part developed out of once lax enforcement. The jewelry industry is cooperating with the NRC to improve compliance.

Since receiving notice, jeweler and gemstone trade associations along with the JVC have been working to gain an understanding of the regulations, understand what enforcement actions the NRC may take, and request guidance from the NRC on how to deal with current inventories. It is also expected that one or more industry entities will apply for an NRC license to produce and test irradiated gems going forward. In the meantime, many major retailers and suppliers have suspended sales of blue topaz.* Working with the NRC, an industry task force spearheaded by the JVC has begun batch testing of current blue topaz inventories.

It is too early to tell if this issue will be resolved in time for the holiday season. As it stands right now, one of the strongest sellers in the industry’s hot commercial level has been sidelined. If a strategy allowing the sale of current inventory blue topaz is not ironed out, the prospect of suppliers with large investments in these goods becomes dim. They will either eat the losses or try to move the material in emerging retail markets overseas. Neither prospect bodes well for the industry.

*As of this writing, Stuller, Sterling, JC Penney, and other companies have all suspended sales of blue topaz. This is not a complete list and other stores and suppliers may also follow suit.

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