The International Gemological Institute (IGI) has signed an exclusive agreement with the Shanghai Diamond Exchange (SDE), to provide certification services for the SDE members. IGI Hong Kong will undertake the work of diamond and gemstone certification.
The IGI agreement is an after effect of China’s revised import taxation laws for the diamond trade. Accordingly, diamonds can be shipped to Hong Kong and back to China without being taxed again.
To facilitate the transport of diamond to and from China, Brink’s, a transportation service carrier, will provide SDE members with complimentary shipping services. The reduction of value added tax (VAT) to 4% for the diamond trade, in July 2006, has led to an increase in the SDE membership.