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China Cuts Import Tariffs on Jewelry
Jun 11, 2018 7:56 AM
By Leah Meirovich
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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
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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
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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
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