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Sino-Foreign Diamond Center to Shine in Shanghai
Shanghai Municipality is seeking two or three big-name diamond and jewellery investors to establish its diamond exchange center, according to Wednesday's Chinadaily.
"For the moment, some Israeli companies have expressed an interest," said Yan Nanhai, executive head of the Shanghai Diamond Exchange Center's (SDEC) preparatory group, Shanghai Lujiazui Development Group (SLDG).
He said the preparatory group was also in negotiations with companies from other countries. "But no one is chosen yet," he said.
According to Yan, the foreign-owned shares are expected to exceed 25 percent. "But I don't think they will be more than 50 percent."
"Diamond dealers who import rough diamonds from foreign countries and then export them after processing from SDEC will not be levied with a tariff, value-added tax, consumption tax or other taxes usually involved in processing," said Li Shanfen, director of Shanghai Customs.
But once the processed diamonds enter the domestic market, dealers will be taxed, Li said.
Dealers of domestic diamonds will receive tax-returns if they export their diamonds through SDEC.
To support the center, the 40,000-square-meter Lujiazui Diamond Processing Zone is under construction.
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