Kimberley Process Launches New Website

Ambassador Gillian Milovanovic and the entire U.S. team are pleased to announce the official launch of our newly redesigned and reconstructed website, www.kimberleyprocess.com. Thanks to the hard work and support of the Antwerp World Diamond Centre (AWDC), the Kimberley Process now has a modern website that can meet our needs:

•On the public side of the website, it has updated information on participants, observers and candidate countries, streamlined data for the public, and a new blog section. You will see a new section on development (and soon one on enforcement), and we will also be looking to Kimberley Process participants and observers to contribute stories about their work for the blog. We've added a link to our new Facebook page, too.

•On the participants-only side (for which new log-on information is forthcoming), we will be working to add new features that make the work of the Kimberley Process and our working groups more efficient, transparent to all in the Kimberley Process, and less reliant on e-mail. We also hope to have the official intersessional registration online there for your use next month.

Like any good website, we expect it to be ever-changing, growing, and increasingly useful to you in your work; as such, we always welcome suggestions to make it more user-friendly or comprehensive. In particular, if you notice information that should be on the public and/or participants-only sections, please send them to us at kpcs.chair-at-state.gov.

In the coming weeks, we will transition from e-mailing documents to posting them on the website directly and simply emailing alerts that the site has been updated. We also expect that the website can begin to be a forum for exchange of information and views among Kimberley Process participants and observers.

We again thank the AWDC for their vision and essential support and we look forward to hearing from you about the new site.

-RAPAPORT

India Proposes Import Duty on Polished Colored Gems

India's Finance Minister, Pranab Mukherjee, on Friday proposed to impose customs duty of 2 percent on cut and polished colored gemstones in order to prevent round-tripping, bringing the duty on par with diamonds. He also proposed increasing the basic customs duty on imports of gold and other precious metals.

The industry was disappointed with the proposals announced by Mukherjee in Parliament while presenting the Union Budget for the fiscal year starting April 1, 2012.

Mahavir Lodha, the chief executive for Mumbai Wholesale Gold Jewellers Association, said, "The budget is disappointing and these taxes will hurt the consumer demand.”

The Gem & Jewellery Export Promotion Council (GJEPC) stated that in a ''politically safe'' budget, the finance minister has announced one-sided measures to control the FOREX reserves of the country by making gold, colored stones and gems more expensive for the consumer. The council explained that one driver behind the current account deficit is due to surging imports of gold and other precious metals in the first three quarters of this fiscal-year. With the announcement of additional duties, the government aims to limit the imports of gold and colored gemstones, GJEPC added.

India’s colored gemstones import surged to $255.02 million during April 2011-February 2012 from $111.3 million one year ago, according to GJEPC’s provisional data. The country exported colored gemstones worth $309 million during the period, up 14 percent year on year, the data showed.

Mukherjee proposed to increase customs duty --on standard gold bars, gold coins of purity exceeding 99.5 percent and platinum-- from 2 percent to 4 percent and on non-standard gold from 5 percent to 10 percent.

“Our demand for the turnover tax has not been considered and the existing uncompetitive tax environment is driving investments away from India,” commented Rajiv Jain, GJEPC’s chairman. “Additionally, the measure of increase from 2 percent to 4 percent duty announced will lead to corrupt state of affairs due to greater probabilities of trafficking of gold into the country through illegal channels”.

During the first 11 months of the 2011-2012 fiscal year, India’s gold bar imports rose 44 percent year on year to $10.05 billion, while platinum imports declined to $7 million from $29.3 million a year earlier, GJEPC data showed.

Mukherjee said that basic duty on gold ore, concentrate and ore bars for refining is also being enhanced from 1 percent to 2 percent, while the excise duty, a type of tax charged on goods produced locally, on refined gold is being increased from 1.5 percent to 3 percent.

The government also proposed to extend the levy of excise duty of 1 percent on branded precious metal jewelry to include unbranded jewelry. However, to simplify its operation and minimize the impact on small artisans and goldsmiths, Mukherjee said that this duty will be charged on tariff value equal to 30 percent of the transaction value.

In addition, he proposed to extend small-scale exemptions up to annual turnover not exceeding $300,963 (INR 15 million) for units having a turnover below $802,568 (INR 40 million) in the previous year and to compute turnover on the basis of tariff value. He placed the onus of registration and payment on the person who manufactures the jewelry.

Jain said that the interest in buying gold jewelry and gold bars will also fall if consumers have to pay more duty.

Mukherjee said that branded silver jewelry will be fully exempt from excise duty, which the industry saw as the only exemption that benefits consumers.

-Rapaport

Photo Credit: © Imagemore Co., Ltd./Corbis

India Pays Higher Prices for Same Rough Diamonds

The value of India's rough diamond imports and exports increased sharply in November, however the volume was largely unchanged from last year, based on provisional figures published by the GJEPC.

India's net rough diamond imports in November totaled 8.8 million carats worth $1.02 billion. This is a 6% decline in volume yet 42.1% rise in value compared to November 2010.

The value of India's gross rough diamond exports leaped 48.7% to $1.17 billion in November. The volume of exports made a less dramatic increase, up 2.4% to 11.2 million carats.

The disparity between the increased value and volume of exports is a result of a large overall increase in rough diamond prices over the past year. This is also reflected in the difference in the average value of imports. The average value of gross imports in November was $104.09 per carat, compared with $69.90 p/c in November 2010.

Rough diamond exports have leaped in November. India exported $146.3 million worth of rough, up 166.5% year-over-year. The volume of exports increased 50.1% to 2.38 million carats.

-Israeli Diamond Industry

Jeweler donates 20% of line's sales to fight autism

Bartow’s Jewelers here has announced that it will donate 20 percent of every purchase of select Sarah’s Hope Jewelry designs from the store this holiday season to Families Advocating Autism Now (FAAN), a local group dedicated to helping the families of children diagnosed with autism.

Sarah’s Hope Jewelry is a socially responsible jewelry line that helps provide microloans and small businesses training women in impoverished situations throughout the country and world.

“Through their purchases of Sarah’s Hope Jewelry, our customers have participated in the efforts to help life hundreds of women through small business ownership,” Lisa Barrote, owner of Bartow’s Jewelers, told northern California’s Times-Standard. “Now we’re thrilled to also help locally by giving back to the FAAN club of Humboldt.”

The promotion at Bartow’s Jewelers will run through Dec. 24. Customers can choose from a selection of Sarah’s Hope earrings, bracelets and pendants in sterling silver and colorful “E’Sperene” stones, the proceeds of which will benefit FAAN.

“We know there are many needs in our country, and we are excited that our customers will help by purchasing gifts that not only look good, but help do good for the families of children who have been diagnosed with autism,” Barrote said.

Sarah’s Hope Jewelry sales will also be helping another charity this holiday through the help of Jewelers Mutual Insurance Company. Jewelers Mutual is participating in a “Giving Back Locally” program by contributing $1,000 to charity in honor of the jeweler who raises the most money through sales of Sarah’s Hope line during the holiday season.

-National Jeweler

NASDAQ Reprimands Pandora Over Sales Forecasts

The NASDAQ OMX Copenhagen reprimanded Pandora on Dec. 22 for not informing the market that it would miss its annual revenue forecasts.

On Aug. 2, the Danish charm manufacturer announced it was dramatically scaling back its yearly projections—which originally foresaw a 30 percent jump in sales. But NASDAQ ruled that “it must have been clear to the company at an earlier stage” that its previous projections could not be reached.

The exchange noted the resetting of expectations led to a 70 percent drop in the company’s share price, and occurred only three and a half months after the positive guidance was issued.

In a statement, Pandora said it “acted properly” in response to “a swift and unexpected downturn in sales.”

“At the beginning of July 2011, year-to-date revenue was up 22 percent against the same period in 2010,” the company noted, adding that at the time it believed its prior forecast of 30 percent revenue growth would still hold.

However, “trading conditions significantly worsened in July 2011, with revenues in July 2011 being down by more than 30 percent against July 2010,” the company added.

At this time, executives “acted decisively and in a timely manner” by broadcasting the new projections, said the statement.

The company said it is in dialogue with the Danish Financial Supervisory Authority.

On Dec. 19, Pandora announced it had hired a new CEO.

-JCK Online

Crossworks to Cut De Beers Diamonds Worth C$35M Over 3 Years

Canada’s Sudbury-based Crossworks diamond manufacturer is expected to nearly double its workforce now that the company has won a three-year contract to cut some C$35 million from De Beers’ Victor Mine, the CBC reports.

According to the Ministry of Northern Development and Mines, De Beers Canada has an agreement to offer 10% of the rough diamonds produced at the Victor Mine for sale to be manufactured in Ontario.

Currently, Crossworks’ Sudbury plant employs a workforce of 29, a number that is expected to increase to 50. Due to a lack of qualified diamond cutters and polishers in Ontairo, the company will invest in training the new workers.

-Israeli Diamond Industry

Jaipur Jewellery Show Begins in India

The ninth edition of Jaipur Jewellery Show (JJS) kicked-off on Friday with only average visitor traffic, but exhibitors are expecting activity to pick up over the weekend. About 450 exhibitors are participating in the event, which runs until December 26.

"Our aim is to promote the domestic industry. This is also a consumer show and so we want to promote more of our Jaipur jewelry, Rajasthani jewelry and then Indian jewelry," said Rajiv Jain, the secretary of the JJS organizing committee and chairman of the Gem & Jewellery Export Promotion Council (GJEPC).

Navin Dangi of ND Creation stated that visitor traffic is average since it’s the first day of the show. “We are getting mostly inquiries from retail consumers. Hopefully it will be better in the next two days as we expect visitor traffic to increase in the weekend,” he added.

Sitesh Hirawat, a director at DP Designs, said that visitor traffic is better than last year, but since it is the first day of the show it was unclear how inquiries would convert into actual business. An executive with exhibitor M.B. Sons (I) said, “The response is good from consumers for our jewelry. They have specific needs and it gets easily fulfilled during this kind of show.”

Aditya Kothari of Jaipur-based Daksh Jewellery said that traffic is light today, but that was okay as inquiries are being made and a few sales were also taking place.

JJS, also known as the December show, is considered as the second largest jewelry show in India, according to the organizers, who said 85 percent of the exhibitors are repeat exhibitors. Organizers expect around 25,000 to 30,000 visitors to participate in the show, mostly from various parts of the country. Some visitors are also coming from Thailand and Hong Kong.

The organizers, which promote one gemstone every year in the show, are promoting "Kundan-Meena" this year. Vimal Surana, convener of the organizing committee said that JJS will have “diamond jewelry-Jaipur adds color to it” as the theme for the next two years.

Vikram Merchant, the manager of Rio Tinto Diamonds’ Indian representative office in Mumbai and who inaugurated the show, said that the years ahead will see the emergence of India as a major diamond jewelry consumer and also as a major diamond producing country. He added that no other country in the world has the same potential as India to be a major producer, manufacturer and consumer of diamonds.

''The gifting market offers significant potential for diamond jewelry consumption growth,'' Merchant said.

-Rapaport