DiamondBuzz
China ends VAT concession for diamonds
Policy Shift Signals Stronger Support for Domestic Diamond Supply Chain
China has eliminated its value-added tax (VAT) concessions on diamond imports, This change applies to all diamonds—both natural and lab-grown—traded through the Shanghai Diamond Exchange (SDE), China’s sole authorized platform for general-trade diamond imports and exports, meaning it affects the entire diamond trade sector.
Previously, importers benefited from a “levy-and-immediate-rebate” mechanism where they paid 13 per cent VAT but immediately received a 9 per cent refund, resulting in an effective tax burden of just 4 per cent. Under the new regime, importers and traders must pay the full 13 per cent VAT upfront at import, recovering it only after the diamonds are sold. This creates significant cash flow pressure and higher upfront costs for businesses in the diamond supply chain.
The policy change also extends to rough diamonds, which were previously zero-rated but now face the full 13 per cent VAT. This represents a dramatic shift in China’s treatment of raw diamond imports, eliminating what was effectively a tax-free entry point for rough stones destined for processing.
The immediate impact is twofold: consumers will face higher diamond prices as importers and retailers pass on increased costs, while domestic diamond producers gain a competitive advantage by no longer operating at a tax disadvantage compared to imported goods. This leveling of the playing field suggests a policy shift toward supporting domestic diamond manufacturing and trading capabilities.
DiamondBuzz
Richemont and Signet Jewelers Could Join Global Diamond Consortium In Bid For De Beers
Richemont, Signet Would Connect The Consortium To Key Global Growth Vectors Spanning Luxury High Jewelry and Mass-Market Retail.
The Global Diamond Consortium (GDC)
Richemont and Signet Jewelers are reported to be in talks about joining the Global Diamond Consortium (GDC), the preferred bidder for De Beers according to a Bloomberg News report.
​GDC was selected in July 2026 as one of Anglo American’s preferred bidders for De Beers as part of Anglo American’s ongoing corporate restructuring.
​The potential inclusion of Richemont—owner of luxury Maisons including Cartier and Van Cleef & Arpels—and Signet Jewelers—the world’s largest retailer of diamond jewelry, operating brands such as Kay Jewelers, Zales, and Jared—would connect the consortium to key global growth vectors spanning luxury high jewelry and mass-market retail.
​Strengthening the Natural Diamond Ecosystem: Participation by major luxury brands and global retail leaders reinforces commitment across the entire value chain—from responsible mining and manufacturing to consumer engagement.
​Balanced Governance Structure: Discussions center on potential minority equity positions that would support long-term category growth while maintaining appropriate separation between ownership and commercial strategy.
​Broad Stakeholder Participation: The consortium continues to advance talks with host governments, including discussions with the Government of Botswana regarding a potential increase in its equity share in De Beers from 15% to approximately 25%, alongside participation from private investors and southern African host nations.
​​Discussions between GDC, Richemont, Signet, and participating government stakeholders remain ongoing. Terms of any potential participation, including the size of equity interests, have not been finalized and remain subject to regulatory approvals and definitive documentation.
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