Former envoy heads regional office
Israel aims to export 150 per cent more diamonds to the mainland by the end of next year, a mission to be accomplished by a former Israeli envoy to Hong Kong.
Eli Avidar, the former Israeli consul-general, said his country would export US$250 million worth of diamonds to the mainland next year, up from US$100 million last year and representing 1.5 per cent of Israel's diamond exports last year.
To do this, the Israel Diamond Institute, a private company jointly owned by the Israeli government and diamond traders, is opening a regional office in Hong Kong today and has launched a Chinese website to allow business-to-business orders from mainland diamond wholesalers to Israeli diamond traders.
Mr Avidar, the managing director, said his institute wished to help small and mid-sized Israeli diamond companies reach the mainland market.
In a move aimed at combating diamond smuggling, Beijing reduced the value-added tax (VAT) for diamonds a year ago in July. The VAT for uncut diamonds entering the mainland through the Shanghai Diamond Exchange was cancelled, while that for polished stones was reduced from 17 per cent to 4 per cent.
Diamond trading countries, including Belgium and Israel, said they have benefited from the tax cut.
