Young Diamantaires: We create initiatives for the benefit of diamond communities worldwide

The World Federation of Diamond Bourses recently launched its Young Diamantaires website. The organization has worked for the past four years with young members of the diamond community all over the world to create a platform through which they can express...

29 june 2020

Those who implement the right anti-crisis strategies have more chances

It is not surprising that because of the pandemic and the crisis, the most heated debate in the jewellery industry is about what is happening and the possible ways of survival. Irina Slesareva, an expert, art director of the Russian Diamond Line contest...

22 june 2020

The secondary diamond market in Russia is not mature although its prospects are huge

Pavel Barannik, the founder and head of the Moscow Gemological Laboratory, the founder of the Gemological Institute and President of the Moscow Diamond Club, graduated from the Gemological Institute of America (GIA). He is an expert and consultant...

15 june 2020

Johan Erikson: The industry needs to spend more on advertising and marketing

First Element is a fully independent Diamond Services Company registered in Belgium, Botswana, South Africa and Dubai. First Element is committed to providing a world class diamond service aimed at adding value to the entire supply chain, from the daily...

08 june 2020

African diamond firms on COVID-19 response, recent developments

Rough & Polished recently contacted several diamond producers and exploration companies with operations in Africa to establish how their operations were affected by the Covid-19 pandemic and what they are doing to alleviate the impact. We also sought...

01 june 2020

High import duty wipes out 'round-tripping' practice in the Indian diamond industry

29 november 2019
After the Indian central government increased import duty on polished diamonds from 2.5% to 7.5%, round-tripping of polished diamonds, a bogus trade practice intended to artificially inflate the balance sheets, has been completely eradicated in India, says a TOI report.
The import of polished diamonds, which touched $20 bln in 2010-11 has been reduced 10 times to just $2 billion in 2018-19. However, the industry leaders stated that the increase in import duty has left genuine diamantaires, including those having manufacturing units in South African countries, in the lurch.
But, round-tripping was not new to the Indian diamond industry as the practice was going on since 2007 when the Central government scraped the 3 per cent import duty and allowed free imports of cut and polished diamonds. The unscrupulous traders took this as an opportunity to carry out ‘round-tripping’ and defraud the banks.
A senior office-bearer of the Gems and Jewellery Export Promotion Council (GJEPC) reportedly told TOI, “The round-tripping of diamonds is over, but the genuine players in the industry having their offices in Hong Kong, South Africa and Antwerp are facing business losses. They are unable to send the diamond assortments to India due to high import duty. The import of polished diamonds, since the duty hike in September 2018, has shown a decline by around 25% and revenue collection too has had a dramatic drop by over 51%. We have requested the government to reduce the duty back to 2.5% to help the genuine players in the industry.”

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