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Vallabhbhai Shamjibhai Patel tells about the ongoing construction of the Surat Diamond Bourse

The under-construction Surat Diamond Bourse (SDB) is India's second diamond trading hub based at Surat, Gujarat, spread across 35.54 acres with more than 4,000 offices for national & international traders. On the onset, the project which...

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The strategy of regulating the Russian jewellery industry

At the General Meeting of the Russian Jewellers Guild Association held in April, two principally important documents were adopted: The Strategy of Regulating the Jewellery Industry of Russia and The Charter of a Good Faith Taxpayer. Besides, the issues...

13 june 2018

Our first priority is to better understand artisanal and small-scale mining - Elodie Daguzan

The Diamond Development Initiative (DDI), the organization dealing with the traditional diamond mining, recently announced the appointment of Élodie Daguzan as its first Goodwill Ambassador. Ms. Daguzan, who currently works as head of communication...

04 june 2018

Zimnisky on De Beers’ Lightbox: It’s a strategic, bold move that will benefit the entire natural diamond industry

De Beers shocked all and sundry end of May when it announced the launch of a new company called Lightbox Jewelry, which will market a new brand of laboratory-grown diamond jewellery in September. This effectively meant that the group had departed from...

01 june 2018

Tracking the provenance and lifecycle of a product is a natural and necessary evolution in our industry

A senior executive with a demonstrated history of working globally at management and board levels, Marcus ter Haar has been the Managing Director at Okavango Diamond Company (ODC), Botswana for about 10 months now, prior to which he held the...

28 may 2018

China cuts import tariffs on 18 jewelry categories

08 june 2018
According to the notice of the Customs Tariff Commission of the State Council, China will cut Most Favored Nation (MFN) tariffs for daily consumer goods involving 1,449 tax items starting July 1. Eighteen tax items involving jewelry categories are included, says a press note from Guangzhou Diamond Exchange.

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Image credit: Guangzhou Diamond Exchange

The MFN import tariff rate for Gold and silver jewelry products will be reduced from 20% to 8%, and that for platinum and other precious metal products from 35% to 10%, and for natural or cultured pearl products, gemstones or semi-precious stones products from 35 % to 10%. The average tariff drop for the 18 jewelry tax items will be 67.75%.
Apart from the tariff, there is a value-added tax (VAT) of 16% needed to be collected at the import stage, and a consumption tax will be further levied for some items. The Graph provided by Guangzhou Diamond Exchange shows the Comprehensive Tax Rate change for some of the jewelry items.
Liang Weizhang, general manager of Guangzhou Diamond Exchange said, “This is the first time that China has cut the import tariffs on jewelry categories and the tariff drops for jewelry products are much greater than gems raw materials. In the past, jewelry is more often regarded as luxury products, but now it has been listed as daily consumer goods. Chinese cabinet called the tariff cuts a move conducive to expanding,  opening-up, meeting the demands of the people and boosting quality and industrial upgrading. For foreign jewelry brands, it is definitely a huge business opportunity to step more into the China market with decreasing price gaps caused by the tax. China has been one of the most important luxury and jewelry markets worldwide, and the gate of China is more and more opening up.”

Aruna Gaitonde, Editor in Chief of the Asian Bureau, Rough & Polished

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