The Israel Diamond Exchange (IDE) announced today that an agreement has been reached with the Diamond Controller extending the tax-free inspection period of imported diamonds from 3 days to 30 days. The extension applies to diamonds of $50,000 minimum value. The change in the inspection period is expected to have a substantial effect on Israel’s diamond trade, opening up the Israeli industry to the import of greater quantities and more diverse goods.
The change in regulation was the result of two years of intensive efforts by IDE leadership to convince the Diamond Controller of the importance of the change. Until now importers were able to inspect imported goods for 3 days only without having to pay an import levy. The short inspection period prevented proper examination of the diamonds prior to purchasing or returning them, and limited the variety of goods imported.
Sources at IDE said that the extension of the inspection period would enable large companies with factories abroad to bring goods to Israel for sorting prior to sending them abroad, and to trade some of the goods in Israel.
According to IDE President Yoram Dvash, “The decision by the Diamond Controller is nothing less than revolutionary. It will make a dramatic contribution to Israel’s diamond industry, enabling us to better compete on the world stage. We will now gain access to a greater quantity of goods, from a greater variety of countries. The increased trade will grow our industry and raise it to new heights.”
The extension of the inspection period will go into effect on May 1, 2018 and will be valid until October 31, 2018, when it will be re-evaluated.