News

Advanced Search

China Cuts Import Tariffs on Jewelry

Jun 11, 2018 7:56 AM   By Leah Meirovich
Comment Comment Email Email Print Print Facebook Facebook Twitter Twitter Share Share


RAPAPORT... China has reduced import duties on 18 jewelry categories by reclassifying them as everyday consumer goods, according to the Guangzhou Diamond Exchange.

The Customs Tariff Commission of the State Council has cut the rate by an average of 68% across those categories, Liang Weizhang, general manager of the bourse, told Rapaport News Sunday. The new rates will go into effect on July 1.

“This is the first time that China [has cut] the import tariffs on jewelry categories in recent years,” Weizhang said. The change presents an opportunity for foreign jewelry brands to move further into the Chinese market, he added.

The adjustment has come about because China has reclassified these jewelry products as “daily consumer products,” whereas, until this point, they had been considered luxury goods, Weizhang explained.

Among the items to enjoy a tax reduction are gold- and silver-jewelry products, which will drop from the 20% bracket to 8%. Tariffs on platinum and other precious metals will decline from 35% to 10%, as will duty on natural or cultured pearl products, gemstones and semiprecious stones.

The lower rate will probably only affect luxury brands such as Tiffany & Co. and Cartier, as those are generally the types of jewelers that import finished pieces into China, said Julius Zheng, vice president of the Shenzhen Rough Diamond Exchange.

The relatively low tariffs on polished-diamond imports make it more worthwhile to ship loose stones into the country and assemble the jewelry there, he added. Only the high-end brands whose products carry large retail price tags have the margins necessary for it to be worth importing jewelry.

“The tariff cut may boost the sales of such brands on condition that they choose to reduce their price point accordingly,” Zheng said.

However, only a small portion of Chinese consumers buy these top-end products, he noted.

The tax may also encourage the import of 18-karat-gold designer jewelry from Italy, which is popular in China, Zheng continued.

China’s New Import Tariffs

Import Tariffs
HS Code Description of Goods Current Rate New Rate After July 1, 2018
71131110 Silver jewelry and parts thereof, inlaid with diamond 20% 8%
71131190 Other silver jewelry and parts thereof 20% 8%
71131911 Gold jewelry and parts thereof, inlaid with diamond 20% 8%
71131919 Other gold jewelry and parts thereof 20% 8%
71131921 Platinum jewelry and parts thereof, inlaid with diamond 35% 10%
71131929 Other platinum jewelry and parts thereof 35%10%
71131991 Other precious metal jewelry and parts thereof, inlaid with diamond 35%10%
71131999 Other precious metal jewelry and parts thereof 35%10%
71132010 Jewelry of base metal clad with precious metal, inlaid with diamond 35%10%
71132090 Other jewelry and parts thereof, of base metal clad with precious metal 35%10%
71141100 Silver wares and parts thereof 35%10%
71141900 Other gold and silver wares and parts thereof 35%10%
71142000 Gold and silver wares and parts thereof, of base metal clad with precious metal 35%10%
71161000 Natural or cultured pearls 35%10%
71162000 Precious or semi-precious stones 35%10%
71171100 Cuff links and studs 35%10%
71171900 Other imitation jewelry of base metal 17% 8%
71179000 Other imitation jewelry of unlisted material 35%18%
Source: Guangzhou Diamond Exchange

Image: Humphery/Shutterstock
Comment Comment Email Email Print Print Facebook Facebook Twitter Twitter Share Share
Tags: China, Customs Tariff Commission of the State Council, Guangzhou Diamond Exchange, Import Tariffs, Jewelry, Julius Zheng, Leah Meirovich, Liang Weizhang, Rapaport News, Shenzhen Rough Diamond Exchange
Similar Articles
De Beers JewellersCorrection: De Beers Jewellers
Oct 14, 2018
An article entitled “De Beers Jewellers Sees Sales Drop” — published on Diamonds.net and the NewsBrief on Wednesday,
Comments: (0)  Add comment Add Comment
Arrange Comments Last to First
© Copyright 1978-2018 by Martin Rapaport. All rights reserved. Index®, RapNet®, Rapaport®, PriceGrid™, Diamonds.Net™, and JNS®; are TradeMarks of Martin Rapaport.
While the information presented is from sources we believe reliable, we do not guarantee the accuracy or validity of any information presented by Rapaport or the views expressed by users of our internet service.