IDMA cites, India rough diamond
Recently IDMA Cited ‘the article reports in detail about India’s tax authorities making stringent demands from those diamond traders importing rough that they declare its origin, detail the value of individual pieces of rough and assure that the invoices can be matched exactly with the - value of - the goods described.
Interesting enough, most of the industry members interviewed were negative about these demands, arguing these demands impair their businesses and that this cannot be done. “Valuing rough diamonds is a very subjective matter… It may differ from one valuer to another. Also mine-specific classifications of roughs vary,” says a diamond trader with offices in Mumbai’s Bharat Diamond Bourse.”
But the Indian tax authority official quoted below is adamant the tax office stoff knows what they are talking about:
“The customs department may not relent as they are not asking for more disclosures to increase tax collections. They are gunning for a large cause – to stop the use of ‘rough imports’, as a means to siphon off money abroad. “Do you believe, these traders would pay money for roughs without ascertaining their yield-potential?” quips the customs official. “They exactly know what they’re buying… Miners give them all details to arrive at a fair price. We’re only asking traders to simply state original classifications assigned by the miner. Miners’ classification is good for us to value individual packets,” he adds.”
This WINC's news also reflects the problems we’re currently facing as rough buyers and manufacturers. Producers have curtailed production. ABN Amro has severely cut back on the credit it extends to manufacturers to buy rough; India’s cutters, consequently, are facing very tough times; Alrosa’s sales have dropped 25 percent, followed closely by De Beers; Petra Diamonds is having problems, as are other juniors; and with Argyle’s closure, in 2020, it has been said the global output of small rough diamonds will drop with as much as 15 million carats.’