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China reduces diamond tariff to zero
( 2001-12-06 16:33 ) (8 )

China will reduce its diamond tariff to zero next year, official sources from the Ministry of Finance (MOF) and the State Administration of Taxation (SAT) said Thursday.

The present import tariff for crude diamonds is 3 percent and for finished diamonds 9 percent.

Tax on crude diamonds will drop from 33.9 percent to 17 percent, that for finished diamonds from 41.7 percent to 17 percent.

MOF and SAT said the new diamond tariff regulations will go into effect on January 1, 2002.

Policies related to the decision say that every ordinary import and export item in China should apply to the Shanghai Customs and have all trade volume registered at Shanghai Diamond Trade United Administration Office.

The trade administration office deputy director, Fang Xiong, said in Shanghai that the policy marks a turning point for China's diamond market and industry.

China is home to the world's second-largest diamond processing center; however, the country's scarce diamond resources and high tariffs have been curbing the development of its diamond processing industry.

It is estimated that China has over 80 diamond processing enterprises, which process 2.4 million carats of diamonds a year, with a total product value of US$800 million. Total diamond sales value last year hit 6.1 billion yuan (US$740 million).

The market value for a diamond can amount to US$10,000 per carat. 

 
   
 
   

 

         
         
       
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