Lin Qiang
The Shanghai Diamond Exchange is a national factor trading market approved by the State Council. It was established on October 27, 2000. It is the only diamond import and export trading platform in mainland China. . The Diamond Exchange operates in accordance with the prevailing rules for international diamond trading and provides a fair, just and transparent trading environment for domestic and foreign diamond traders. Since its establishment in 2000, the Diamond Exchange has actively learned from the development experience of other major diamond exchanges in the world. After more than ten years of hard development, it has begun to take shape. As an international diamond trading platform similar to a bonded zone, the Diamond Exchange adopts the internationally accepted membership-based closed management method and currently only recruits corporate members. As of October 31, 2012, the number of member companies of the Diamond Exchange has grown from the initial 41 to 345, including 229 foreign members from 14 countries and regions, accounting for 66% of the total number of members of the Diamond Exchange; including those from Hong Kong, Members from major diamond processing and trading center regions and countries such as India, Israel and Belgium account for half of the total members. In October 2009, the Diamond Exchange moved from Shanghai Jinmao Building to the newly designed and built "China Diamond Trading Center Building". The hardware facilities and supporting services of the Diamond Exchange have been further improved and improved, making the Diamond Exchange The development of the institute has entered a new stage. The building was designed by the American Nohan Design Company. It has 14 floors, covers an area of ??6,000 square meters, and has a total construction area of ??50,000 square meters. At present, more than 240 diamond exchange member companies have set up offices within the exchange to carry out diamond import, export and intra-exchange transactions.
Members of the Shanghai Diamond Exchange are distributed by country
1. Diamond tax preferential policies
The diamond industry is a policy-guided industry. Shanghai Diamond Through joint efforts with government departments, the exchange has gradually put China's diamond industry on the track of healthy development.
In 2000, China’s diamond import taxes included: 9 polished diamond tariffs, 3 rough diamond tariffs, 17 value-added tax, and 10 consumption tax. In 2002, the Ministry of Finance, the State Administration of Taxation, and the General Administration of Customs jointly issued a document: Via Shanghai Diamonds on the Diamond Exchange are exempt from tariffs, and the consumption tax is reduced to 5 and then moved to the retail link. The import and export of diamonds for general trade across the country is concentrated on the Shanghai Diamond Exchange. In June 2002, the month when the new policy was implemented, the customs collected more than 5 million yuan of value-added tax on imports, which exceeded the total value-added tax collected by the customs on diamonds in one year in previous years.
In order to further promote my country's diamond processing industry and standardize the diamond trading market, in June 2006, the Ministry of Finance, the General Administration of Customs, and the State Administration of Taxation issued the "Notice on Adjusting Tax Policies Relevant to Diamond Exchanges", August 2006 In March, the State Administration of Taxation promulgated the "Measures for the Administration of Value-Added Tax Collection on Diamond Transactions" and the "Specific Operational Measures for the Collection of Value-Added Tax on Diamond Transactions on the Shanghai Diamond Exchange (Trial)". The documents stipulate: Rough diamonds are exempt from import value-added tax, and any portion of the actual tax burden exceeding 4% of the import value-added tax on finished diamonds will be refunded immediately by the customs.
2. Supporting institutions and services
The China Diamond Exchange Building is a special customs supervision area similar to a bonded area. Security checks and security systems are professionally designed. The Diamond Office, Customs, Inspection and Quarantine Bureau, State Administration of Foreign Exchange, Industrial and Commercial Bureau, and Taxation Bureau, as "one-stop" business acceptance agencies, perform government functions in the building; banks, escorts, customs declarations, diamond appraisals and other agencies provide supporting services.
Diamond Office: The full name is "Shanghai Diamond Joint Management Office". At present, its main function is to approve the establishment of foreign-invested diamond companies and the qualification registration of diamond exchange member companies.
Customs: The Shanghai Customs Office at the Diamond Exchange supervises and manages diamonds entering and exiting the Shanghai Diamond Exchange in accordance with the law, implements an advance filing system, and provides a green channel for customs clearance for imported and exported diamonds.
Kimberley Certificate: Pudong Inspection and Quarantine Bureau is the unit designated by the General Administration of Quality Supervision, Inspection and Quarantine to accept the Kimberley Process and is stationed in the Diamond Building. It is responsible for the acceptance, declaration, inspection, and inspection of rough diamonds imported and exported by general trade across the country and processing trade in Shanghai. Verification and release.
VAT invoices: The Shanghai Municipal State Taxation Bureau’s office in the Shanghai Diamond Exchange is responsible for the centralized issuance of VAT invoices for the domestic diamond transactions of member companies of the Shanghai Diamond Exchange.
Appraisal: The National Jewelry and Jade Quality Supervision and Inspection Center is a national-level professional laboratory. It is the largest jewelry grading and appraisal institution in China’s jewelry industry and is responsible for the inspection tasks of China Customs’ import and export of diamonds at the Shanghai Diamond Exchange.
Logistics: International diamond and jewelry transportation companies Brinker Group and Makayami have respectively set up representative offices at the Diamond Exchange to provide members with professional logistics services.
Banks: Industrial and Commercial Bank of China and Industrial Bank have opened branches in the Diamond Exchange; China Construction Bank has set up offices in the building.
3. Regarding China’s diamond industry policies
Mainly related to China’s diamond tax policy, foreign-invested enterprise approval policy, foreign exchange management policy, diamond import and export customs supervision policy and Kimberley certificate management policy .
3.1 China’s diamond tax policy
The Shanghai Diamond Exchange is the only channel for the import and export of diamonds under general trade in the country. All domestic rough and polished diamonds imported from the Shanghai Diamond Exchange are exempt from tariffs. For diamonds sold by taxpayers from the Shanghai Diamond Exchange to the domestic market, rough diamonds are exempt from the import VAT. The actual tax burden of the imported VAT on finished diamonds exceeding 4% will be refunded immediately by the customs. Imported industrial diamonds are subject to import duties and import value-added tax. For domestically processed rough diamonds, if they are sold through the diamond exchange, they will be exempted from value-added tax in the domestic sales process; if they are not sold through the diamond exchange, the value-added tax will be levied at a rate of 17 in the domestic sales process. Domestic processed diamonds entering the diamond exchange are deemed to be exported and no tax refund will be given. Since the Diamond Exchange re-enters the domestic market, if the actual tax burden of the import value-added tax exceeds 4, it will be refunded immediately upon collection. Diamonds are traded on the Diamond Exchange and no VAT is levied. Consumption tax on diamonds imported into the domestic market: A consumption tax of 5% is levied on unmounted polished diamonds and diamond jewelry at the retail level.
3.2 Approval Policy for Foreign-Invested Enterprises
Foreign investors can establish joint ventures or wholly-owned diamond foreign-invested enterprises in areas designated by the Diamond Exchange and the industrial and commercial authorities, and the diamond joint management office within the Diamond Exchange will centralize them. Approval. In order to comply with the special tax policy for diamond enterprises issued by the finance and taxation department, the business scope of foreign-funded diamond enterprises is limited: that is, “carrying out diamond import and export business (including re-export trade and processing trade) through the Shanghai Diamond Exchange Customs; Carry out transactions in diamonds (excluding gold and silver) (including re-export trade and processing trade)”
3.3 Diamond Foreign Exchange Management Policy
With the approval of the foreign exchange management department, the Shanghai Diamond Exchange Members can open a foreign exchange account dedicated to diamond trading. Diamond transactions between members, between members and overseas institutions, between members and bonded zones, export processing zones, and domestic and foreign institutions will all be denominated and settled in foreign currencies.
3.4 Customs Supervision Policy for Diamond Import and Export
The import and export of diamonds under general trade across the country are concentrated at the Shanghai Diamond Exchange Customs for customs declaration procedures; diamonds under processing trade, if converted to Domestic sales must go to the Shanghai Diamond Exchange for trading or filing. When diamonds enter the exchange from overseas or go from the exchange to overseas, they only need to go through the filing and registration procedures with the customs within the exchange. When diamonds enter other parts of the country from the exchange, or when people enter the exchange from other parts of the country, they must go through import and export customs declaration procedures in accordance with the law. Diamonds in the exchange are entrusted to be processed by enterprises located in bonded zones or export processing zones, and are subject to bonded supervision by the customs. Diamonds entrusted to be processed by enterprises in other areas shall be processed in accordance with the current regulations on processing trade.
4. Diamond trading development
Since the establishment of the Diamond Exchange, with the rapid development of China’s economy, the diamond import and export transaction volume has always maintained steady growth every year. In the past ten years, the annual average The growth rate remains around 40. In 2010, the total diamond import and export transactions of the Shanghai Diamond Exchange exceeded US$2 billion for the first time, reaching US$2.886 billion, an increase of more than 90% compared with 2009.
In 2011, the total diamond import and export transactions of the Shanghai Diamond Exchange reached US$4.708 billion, an increase of 63.1% compared with 2010; of which the import of polished diamonds under general trade exceeded US$2 billion, an increase of 56.1% compared with the previous year. Since the beginning of 2012, due to the profound impact of the European debt crisis and the continued downturn of the European and American economies on the international market and the Chinese economy, domestic and foreign diamond market transactions have generally declined significantly, including major diamond markets in Hong Kong, India, Belgium and Israel. Diamond trading in the trading center dropped by 10% to 30% in the first three quarters of 2012. As of October 31, 2012, the cumulative diamond trading volume on the Diamond Exchange was US$3.08 billion, a year-on-year decrease of 13.5%. Among them, the import value of polished diamonds under general trade was US$1.355 billion.
The imported diamonds entering the Chinese market through the Diamond Exchange mainly come from Hong Kong, Belgium, India, Israel, the United States and other major diamond trading center regions and countries in the world. Hong Kong, as the most important international diamond trading center and transfer station in East Asia, brings together some of the major diamond jewelry companies from all over the world. In 2011, nearly US$1 billion of the US$2 billion in diamond imports under the Diamond Exchange's general trade was imported through Hong Kong.
The top ten member companies of the Diamond Exchange in terms of import transaction volume in 2011 are Shanghai Arts and Crafts Jewelry Import and Export Co., Ltd., Kaijikai Diamond (Shanghai) Co., Ltd., Shanghai Kimberlite Diamond Co., Ltd., and Continental. Star Diamond (Shanghai) Co., Ltd., Blue Rose (Shanghai) Diamond Co., Ltd., Chow Sang Sang Diamond (Shanghai) Co., Ltd., Dolemy (Shanghai) Diamond Co., Ltd., Huabi Diamond (Shanghai) Co., Ltd., Shanghai Chow Dasheng Import and Export Co., Ltd. wait. Among them, diamond jewelry wholesalers and retailers account for the vast majority.
Schematic diagram of the growth of total diamond import and export transactions on the Shanghai Diamond Exchange
5. China Diamond Market
According to the polished diamond import statistics of the Diamond Exchange, China has It has become the second largest diamond consumer market in the world after the United States. According to a survey report by De Beers, wedding ring consumption is still the main way of diamond consumption in China at present and even in the future, and the gradually expanding middle class is the main group of people buying diamonds. Its 2009 survey report shows that in first-tier cities such as Beijing, Shanghai and Shenzhen, 8 out of 10 newlyweds are willing to buy diamond wedding rings. The latest online survey shows that more than 50 newlyweds in Shanghai will buy wedding diamond rings worth RMB 15,000 to RMB 20,000. Considering that China's economy will maintain a relatively rapid growth rate in the next ten years and the size of the middle class will continue to expand, the growth potential of the diamond consumer market will still be very strong in the long term.
6. Exchanges and cooperation between the Diamond Exchange and the world’s major diamond trading centers
When the Diamond Exchange was first established, it referred to the successful experiences of the world’s major diamond exchanges or trading centers. In particular, the Antwerp Diamond Management Model is used to manage operations. In the subsequent development process, it has successively established in-depth partnership mechanisms with major international diamond trading center organizations such as the Israel Diamond Exchange, Antwerp World Diamond Center, and the Hong Kong Diamond Federation, and has organized many international diamond summit forums and The 33rd World Diamond Conference and other important exchange events will strengthen communication and cooperation with senior leaders of the international diamond industry, learn from the excellent management experience and concepts of foreign diamond industries, and gradually improve the transaction management and service functions of the Diamond Exchange trading platform. In December 2011, in order to encourage and promote innovative design in the Chinese diamond industry, the Diamond Exchange and the Belgian HRD (Belgian Diamond High Council)*** jointly held the 201·1 HRD·AWARD World Diamond Jewelry Design Competition Award Ceremony in Shanghai, China Designer Jiang Zhe won the grand prize. Lin Qiang, President of the Diamond Exchange, was awarded the "Leopold II King's Official Medal" by the Belgian government at the ceremony in recognition of his great contribution to promoting China-Belgium diamond exchanges.
However, after all, China’s diamond industry and market only have a development history of more than ten years. Compared with Belgium, Israel and India, which have decades or even hundreds of years of diamond industry history, the traditional diamond industry is more developed. There are still inevitable gaps between countries in the development level, industry management, supporting services, policies and regulations of the diamond industry. Specifically, the future development of the Diamond Exchange needs to strengthen industry supervision, introduce diamond financial services, expand international publicity, deepen industrial research, encourage and support the innovation and upgrading of the diamond industry, and expand overseas diamond resources to other major diamond exchanges in the world. At the same time, in the construction of trading platforms, it is necessary to learn from the increasingly popular electronic system management and successful experiences of online platform construction in major international diamond trading centers, and strive to achieve new breakthroughs in improving transaction management efficiency and expanding the scope of trading services.
Compared with other major diamond trading centers in the world, the Diamond Exchange plays a greater role in centralized diamond import and export transaction management and tax management. Diamonds entering the domestic market through the Diamond Exchange have their corresponding value-added tax invoices and Diamond Exchange registration certificates. In theory, as the Diamond Exchange continues to deepen its supervision of diamond transactions, all diamonds circulating in the market can be traced back to their legal status. source. This will have a profound impact on regulating the development of China's diamond market and ensuring the effective implementation of national tax policies.
China Jewelry and Jade Jewelry Yearbook 2012
As China’s only diamond import and export trading platform, the Shanghai Diamond Exchange has developed rapidly with the continuous development and growth of China’s diamond consumer market. According to statistics, in the past few years, the total diamond jewelry consumption in the Chinese market has continued to grow at an average annual growth rate of 15 to 20%. In the first eight months of 2012, according to data from the National Bureau of Statistics, China's total jewelry retail sales exceeded US$2.8 billion, an increase of 14.9% compared with the same period last year. As China's importance in the global diamond market becomes increasingly apparent, more and more foreign diamond and jewelry companies are rushing into the Chinese market. In the past three years, the Diamond Exchange has added more than 100 new Chinese and foreign member companies. In the new stage of development, the Shanghai Diamond Exchange will fully tap its potential and comprehensively improve the comprehensive service capabilities of the Shanghai Diamond Exchange. Make adjustments in three major areas: improving service levels, improving trading functions and expanding service scope, and strive to make the Shanghai Diamond Exchange truly develop into one of the diamond trading centers in Asia and the world, and make due contributions to the development of China's diamond industry .