- Imports of diamonds for non-industrial use through the Shanghai Diamond Exchange surged in July following a tax rebate policy that took effect July 1, the Economic Daily said Thursday.

The value of non-industrial diamonds imported through the exchange totaled 7.38 million U.S. dollars in July, up 120 percent on July 2005, the report says. 8,000 carats were imported.

The new policy issued by the State Administration of Taxation in June cut valued-added tax (VAT) for imported raw diamonds from 17 percent to zero. Importers of processed diamonds were granted a VAT rebate that cut their tax rate from 17 percent to less than four percent.

The new policy will support the Shanghai Diamond Exchange by encouraging dealers to import via it, a member of the exchange was quoted as saying.

The Shanghai Diamond Exchange was established in the year 2000 to cater for China's rising demand and to bolster Shanghai's ambition of becoming the country's economic center.

The Shanghai exchange now has about 157 members. It is also a member of the World Federation of Diamond Bourses.

Statistics show that diamond imports and exports through the exchange totaled around 225 million carats in its first five years of operation.

The exchange imported 196,000 carats of processed diamonds and 268,000 carats of raw diamonds for jewelry in the first seven months of the year, respectively up and down 10 percent.

Source: Xinhua