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					BUSINESS OPPORTUNITIES IN HONG KONG FOR INDIAN BUSINESS


Exporting Pearls, Gems and Jewellery to Hong Kong
                       - A Guidebook




                                     l
                         Consulate General of India
                             Commercial Wing
              26A, United Centre, 95, Queensway, Hong Kong
               Phone: +852.2528.4476, Fax: +852.2529.0421
                    commerce1@indianconsulate.org.hk
                    commerce2@indianconsulate.org.hk
                     http://www.indianconsulate.org.hk
                                     l
                               March 2003
                                     l
The Consulate General of India, Hong Kong is pleased to bring out “Exporting Pearls,
Gems and Jewellery to Hong Kong - A Guidebook”. This new addition in our
publication series on product reports provides the relevant background information to
Indian export promotion organisations and companies interested in pursuing business
opportunities in and through Hong Kong. This practical guide also offers a resource base
to enable our exporters access more detailed information on specific issues. In the light
of the increasing integration of the economies of Hong Kong and the Chinese Mainland,
we have added separate sections on China.

This booklet has been compiled by my colleagues, Mr. K. Govindan, Consul and Mr. M.
Sridharan, Consul, assisted by Ms. Kiran Juneja, Ms. Ada Lee and Ms. Rashmi Ayyar. We
received useful inputs for this project from the Embassy of India, Beijing and the Gems
and Jewellery Export Promotion Council, India.

A ‘soft’ copy of this report can be downloaded from our website:
www.indianconsulate.org.hk

We hope this publication will be useful to Indian organisations and companies interested
in doing business with Hong Kong and Mainland China. We would appreciate their
suggestions and feedback.



Ashok K. Kantha
Consul General of India
Hong Kong
EXPORTING PEARLS, GEMS AND JEWELLERY TO HONG KONG




                            Table of Contents
                                                                Website.......................................... 40
EXECUTIVE SUMMARY ...................... 1
                                                            5. OPPORTUNITIES IN CHINA.......... 41
1. INTRODUCTION ............................ 13
                                                            5.1 Market and Industry.................. 41
2. HONG KONG IMPORT SCOPE ..... 15                             Market Overview........................... 41
                                                               Policies .......................................... 42
2.1 Hong Kong Economy .................15                      Industrial Bases ............................. 43
   Changing Structure of Economy....15                         China and the WTO....................... 44
   Regional Hub.................................15             Important Exhibitions .................... 44
   ‘One Country – Two Systems’ ......16
                                                            5.2 India’s Exports to China............ 46
2.2 Hong Kong: Basic Facts.............16
                                                            5.3 Services Offered by the Embassy
2.3 Hong Kong Market.....................17                 ............................................................ 46
   Market Overview...........................17
   Product Overview ..........................18            6. INDIA’S POTENTIAL ..................... 47
      Pearls and Gems........................18
      Jewellery ...................................18       6.1 Industry Overview...................... 47

2.4 Market Dynamics .......................18               6.2 Major Products........................... 48
     New Opportunities....................18                   Diamonds and Coloured Stones..... 48
     Production Aspects ...................19                  Jewellery........................................ 50
     Product Trends..........................19             6.3 Policy Measures .......................... 51
     Marketing Channels ..................20                   Exim Policy 2002-07 ..................... 51
     Standards and Rules..................20                   Budget 2003-04 ............................. 52

3. INDIA’S EXPORT SCOPE.............. 23                    6.4 Organisations and Institutions .. 53

3.1 Major Exporters to Hong Kong 23                         7. BACKGROUND INFORMATION ... 55
   Pearls .............................................23
   Diamonds.......................................24        7.1 India-Hong Kong Relations ....... 55
   Coloured Stones.............................24              Overview ....................................... 55
   Imitation Jewellery ........................25              Trade Links.................................... 56
   Precious Metal Jewellery...............26                   Investment Links ........................... 58
   Jewellery Articles ..........................26          7.2 India - China Economic Links... 59
3.2 India’s Exports to Hong Kong...27                          Trade Links.................................... 59
                                                               Investment Links ........................... 61
3.3 India’s Share and Future Scope 28
      Pearls and Gems........................28             7.3 Practical Business Tips .............. 62
      Jewellery ...................................30          Business Tips for Hong Kong........ 62
                                                               Additional Tips for China.............. 62
4. ENTERING THE MARKET ............. 33
                                                            8. RESOURCES ................................. 65
4.1 Exhibitions ..................................33
   Trade Fairs in Hong Kong .............33                 8.1 Key Contacts............................... 65
   Market Access Initiative ................36                 Hong Kong Contacts ..................... 65
   Trade Fairs in India........................37              Mainland China Contacts .............. 73
                                                               India Contacts................................ 74
4.2 Services by the Consulate ..........38
   Business Delegations .....................38             8.2 Online Resources ........................ 76
   Product Studies ..............................38
                                                            9. READER EVALUATION ................ 77
   Trade and Investment Queries .......39
   Newsletters ....................................39
   Business Centre .............................40




Consulate General of India, Hong Kong                                                                                    i
                                                           Summary




Exporting Pearls, Gems and Jewellery to Hong Kong
                                                           4
- A Guidebook

Executive Summary
Market Overview
Products Overview
Market Dynamics
Major Suppliers
India’s Export Potential
India’s Export Opportunities
Strategies for Entering Hong Kong Market
Further Information
Opportunities in Mainland China




T       his publication, “Exporting Pearls, Gems and Jewellery to Hong Kong –
        A Guidebook” is meant to assist Indian trade promotion organisations
        and export companies involved in exporting Indian pearls, gems and
jewellery. According to Standard International Trade Classification (SITC)
system, this report covers pearls, precious and semi-precious stones (SITC: 667)
and jewellery (SITC: 897).

Market Overview

Out of Hong           Hong Kong imports over US$6 billion worth of pearls,
Kong’s US$5.4         gems and jewellery annually. Hong Kong's imports in this
billion exports,      sector grew from US$4.5 billion in 1999 (+31.3%) to
US$4.7 billion        US$5.7 billion in 2000 (+25.5%). There was a slight dip in
were re-exports.      2001, mainly due to global economic slowdown and the
                      impact of September 11, during which Hong Kong's
imports came down to US$5.3 billion (-6%). However, in 2002, Hong Kong's
imports grew by +18.8% to reach US$6.3 billion. In 2002, Hong Kong exported
US$5.4 billion (+22.1%) worth of goods under this sector, of which US$4.7
billion (+24.8%) were in fact re-exports.

Out of Hong Kong’s annual exports of pearls and gems of US$2.96 billion, 99%
are actually re-exports, with the value of US$2.92 billion. Hong Kong is the
second largest exporter of precious jewellery in the world. However, about 3/4th
of its precious jewellery exports are re-exports. Similarly, Hong Kong is one of
the leading production centres of pure gold items and jade jewellery. It is also


Consulate General of India, Hong Kong                                         1
                 EXPORTING PEARLS, GEMS AND JEWELLERY TO HONG KONG




evolving into a leading trading and distribution centre for pearls in the recent
years. Hong Kong is the leading exporter of imitation jewellery in the world. This
shows Hong Kong is mainly a trading hub in the pearls, gems and jewellery sector.

Ordinary trade         Hong Kong has established itself as one of the important
figures do not         exhibition centres for promoting pearls, gems and jewellery
reflect the export     products. Hong Kong imports pearls, gems and jewellery
business managed       products mainly for re-exporting to other markets in the
by Hong Kong           world and for local consumption to a limited extent.
companies or           Moreover, Hong Kong provides opportunities to meet
business deals         pearls, gems and jewellery importers from around the world
made by                and sell these products to their respective markets. It is to
international
                       be noted that offshore trade is not being captured by the
buyers in Hong
                       ordinary trade figures of Hong Kong’s foreign trade, the
Kong.
                       statistics do not necessarily reflect the export business
                       managed by Hong Kong companies.

Hence, Hong Kong offers good business opportunities for pearls, gems and
jewellery products by way of export and re-export of raw materials, intermediaries,
accessories, finished products, etc., apart from providing a regional exhibition
platform for these products.

Products Overview

Pearls, precious and semi-precious stones formed 77.3% of Hong Kong’s
total imports in 2002 under the pearls, gems and jewellery sector. During this
period, the value of Hong Kong’s total imports of pearls and gems was US$4,876
million, which saw a growth of +19.7%. It is to be noted that during the same
period, the value of Hong Kong’s re-exports under this category was US$2,924
million (+27.3%), forming 99% of its exports, valued at US$2,964 million
(+26.3%).

In 2002, the value of Hong Kong’s imports of jewellery was US$1,435 million,
which saw a growth of +16.1% and formed 22.7% of Hong Kong’s total intake
of pearls, gems and jewellery. During the same period, Hong Kong exported
US$2,442 million worth of products under this category (+17.4%), of which
US$1,781 million were re-exports (+20.9%). Of the products produced in Hong
Kong, the gem-set jewellery is the most popular one, particularly diamonds set in
14K or 18K gold.

Market Dynamics

China has           China’s entry into the WTO comes with its commitment
committed to        to lower import tariff on most finished precious-jewellery in
lower import tariff.phases, thereby providing one of the major market
                    openings in the industry. Shanghai Diamond Exchange
and Shanghai Gold Council play a major role in the changing market environment
in China.




2                                           Consulate General of India, Hong Kong
EXPORTING PEARLS, GEMS AND JEWELLERY TO HONG KONG




Due to the rapidly emerging Chinese pearl industry, Hong Kong is striving to
emerge as a leading trading and distribution centre for pearls, especially for
cultured pearls, in recent years. Hong Kong, with its global experience as a
trading hub has established new links and enhanced its existing links to expand its
markets for pearl trade. Indian exporters of pearl and articles of pearl can use
Hong Kong also as one of their routes to reach out to new markets and buyers
around the world.

While the jewellery industry around the world remains basically a handicraft
industry, a number of larger establishments have made use of sophisticated and
automated production equipments. Although value-added processes are still
retained in Hong Kong, manufacturing processes are increasingly being shifted to
Mainland China, mainly Shenzhen and Panyu.

Hong Kong’s          The focus on design in the production process is getting
manufacturing        more importance. Increasingly more players in the pearls,
processes are        gems and jewellery sector make use of computer aided
increasingly being   design (CAD) technology to shorten the time cycle for
shifted to Mainland  product development. Computer numerically controlled
China.               (CNC) machine tools are also increasingly employed by
                     many manufacturers to meet the stringent needs of quality
control and standard specifications. Suppliers with these facilities would be able
to match and deliver the specifications in a smoother way to trading hubs like
Hong Kong.

Jewellery designs have been increasingly influenced by the apparel fashion,
especially due to the growth of younger buyers. Apart from the luxury market of
feminine and romantic pieces of jewellery, the demand is growing for jewellery
that is wearable with most of the modern dresses, including jeans, etc. Moreover,
large fashion retail chains, for example, Chanel in Europe, are offering fashion
jewellery as accessories, complementing their new lines of fashion. Such
developments would contribute to an increased demand under high-end category.
Hong Kong’s experienced links with high-end brands will help in this regard.

Innovations are always in demand in the gems and jewellery industry. Trends
like two-tone jewellery are offering new look and feel for the consumers.
Typically a blend of yellow and white gold, two-tone jewellery is seen in the
market offering modern and sophisticated look.

Jewellery             On marketing and distribution, jewellery manufacturers are
manufacturers are     building up individual branded jewellery or having
building up           licensing agreements. This has created a necessity for the
individual branded    jewellery manufacturers to move into distribution also.
jewellery.            Separately, a rapid development of on-line shopping,
                      though yet to achieve the critical mass, is also noteworthy.
The concept of brick-and-click, combining direct sales outlets with on-line
product showcasing, is expected to continue at least for the coming few years.




Consulate General of India, Hong Kong                                           3
                EXPORTING PEARLS, GEMS AND JEWELLERY TO HONG KONG




Though Hong Kong’s jewellery scene is largely oriented towards export trade, the
local retail and distribution channels are also gaining importance. This is
mainly helped by the tourism industry. The Hong Kong Tourism Board
estimated that tourist expenditure on jewellery amounted to about US$1 billion in
2001, of which two-thirds were attributed to visitors from Mainland China. Hong
Kong companies with own brand names have started entering into Mainland
Chinese market by opening their retail centres also.

Trading hubs like     Like other industrial sectors, the trend of consolidation is
Hong Kong are         happening in the jewellery industry also. This trend is
continuously under    noticeable globally including in the Western markets. For
pressure to find      example, in the USA, big players such as Wal-Mart, Target,
competitive           Costco, K-Mart, etc have captured a bigger share of
jewellery products    consumer spending. A recent survey by Search and
with world-class      Markets Limited reported that 20% of fine jewellery
quality.              shoppers in the USA make their purchases at these outlets.
                      This trend changes the dynamics of the market by
providing stronger bargaining power to these players against the individual
suppliers. Trading hubs like Hong Kong are continuously under pressure to find
jewellery products at competitive price and world-class quality to win buyers’
orders.

The trading of ‘conflict’ diamonds is a new concern for the gems and jewellery
industry. The UN defines the conflict diamonds as diamonds that originate from
areas controlled by forces and factions opposed to legitimate and internationally
recognised governments and are used to fund the militia in opposition to those
governments. Conflict diamonds, also called ‘blood diamonds’, originated in
several war-torn African countries, including Angola, Congo, Sierra Leone, etc.
Several non-governmental organisations have highlighted the fact that diamonds
from these sources might have been sold through illegal channels to finance civil
wars and conflicts in these regions. In response, a World Diamond Congress was
held in Antwerp on 17 July 2000 in which The World Federation of Diamond
Bourses and The International Diamond Manufacturer Association (IDMA)
passed a 9-point plan in line with the UN Resolution to clamp down on conflict
diamonds. This includes standardisation of certificate amongst the diamond
exporting countries, transparency, auditing and monitoring of the regime and new
legislation against those who fail to comply, etc.

Trading of             India and Hong Kong are both signatories to this scheme
‘conflict’ diamonds    and have resolved to monitor their diamond trade to avoid
is a new concern       assisting conflict diamond traders. Hong Kong has
for the gems and       introduced the certification scheme since 2 January 2003.
jewellery industry.    Accordingly, Indian companies exporting or importing
                       rough diamonds to Hong Kong should do so with Hong
Kong companies, which are registered with the Trade and Industry Department.
These Hong Kong companies are required to obtain Kimberley Process
Certificates (KPC) issued by the Trade and Industry Department before the
import and export of rough diamonds. However, Indian export of diamonds is
largely concentrated in polished diamonds and hence to that extent Indian export



4                                          Consulate General of India, Hong Kong
EXPORTING PEARLS, GEMS AND JEWELLERY TO HONG KONG




of diamonds to Hong Kong is insulated from the teething trouble of inspection
regime. Restriction of conflict diamonds may at the most influence the price of
rough diamonds in the market and this may have an indirect impact on our
polished diamond prices in the world market as India imports 1/3rd of the global
roughs that go into making polished diamonds.

Environmental and health concerns continue to be important factors in gems
and jewellery trade. In the EU, imports of jewellery containing nickel, which
could cause allergic reactions when in contact with skin, have been banned.
Fashion jewellery products using other materials are in need as replacements to
the EU market in this regard.

Major Suppliers

Hong Kong market     Hong Kong’s Pearls, Gems and Jewellery market is
retains its          dominated by a few players. However, the market retains
sensitivity to       its sensitivity to changes in the world market and adapts
changes in the       swiftly. India is the single largest exporter of pearls and
world market and     gems (SITC: 667) to Hong Kong. Its exports grew at
adapts swiftly.      +11.7% in 2002 and its value of exports reached US$1,825
                     million, accounting for 37.4% of the market. This is
followed by Israel (US$733 million, +31.9%, share 15%), Belgium (US$661
million, +36.7%, share 13.6%), the USA (US$482 million, +11.1%, share 9.9%)
and UAE (US$288 million, +65%, share 5.9%).

China dominates the supply scene of Hong Kong’s import of jewellery (SITC:
897). Its exports grew at +13.5% in 2002 and its export value reached US$522
million, accounting for 36.4% of the market share. This is followed by Italy
(US$243 million, +18.1%, share 17%), the USA (US$217 million, +22.9%, share
15.2%), Switzerland (US$138 million, +29.4%, share 9.6%) and Japan (US$49
million, +25.8%, share 3.4%)

India’s Export Opportunities

India’s export of gems and jewellery to Hong Kong market has grown from
US$1,563 million in 1999 to US$1,854 million. It grew by +11.7% in 2002.

The gems and jewellery trade between India and Hong Kong is vibrant. Hong
Kong is the second largest export destination of Indian diamonds and it
takes 27% of Indian exports in this category, valued at more than US$1,600
million. About 10% of rough diamonds imported by India are also routed
through Hong Kong, valued at US$389 million during 2001-02. Hong
Kong is again the second largest export destination, with about 14% to 15%
share, of India’s coloured gemstones, valued at about US$15 million.
Hong Kong is also the fifth largest export destination of Indian gold
jewellery, which reached US$38 million during 2000-01, accounting for
about 3% share.




Consulate General of India, Hong Kong                                        5
                         EXPORTING PEARLS, GEMS AND JEWELLERY TO HONG KONG




The following table provides information about India’s gems and jewellery export
destinations during 2001-2:
             INDIA’S GEMS AND JEWELLERY EXPORT DESTINATIONS (APRIL 2001 – MARCH 2002)
                                           (US$ million)
                   COUNTRIES                     DIAMONDS              TOTAL GEMS & JEWELLERY
             USA                                             1972.71                      2750.87
             Hong Kong                                       1600.11                      1638.36
             Belgium                                          842.35                       845.01
             Japan                                            329.22                       362.31
             Israel                                           263.85                       265.46
(Source: Gems and Jewellery Export Promotion Council, India)

Except for a single    Hong Kong’s total import of pearls, gems and jewellery has
item, India’s share    reached US$6,310 million in 2002. Hence, India’s share in
in almost all other    Hong Kong’s market is 29% (US$1,854 million). However,
products is            India’s export basket under this sector is lop-sided with
negligible.            only a few products contributing majority of the value.
                       Except for one single item, namely, non-industrial
diamonds, worked, not mounted (SITC: 66729), India’s share in almost all other
products is meagre. This product alone contributed 94% of India’s total export
value of pearls, gems and jewellery to Hong Kong in 2002 (US$1,738 million). In
2002, the value of India’s exports to Hong Kong under pearls and gems was
US$1,825 million and that of jewellery was US$29 million (98:2). Hence, India’s
export basket needs to be more diversified and balanced.

India is still known   India is still known mainly as the leading exporter of cut
mainly as the          and polished diamonds in the Hong Kong market.
leading exporter of    However, India’s strengths in the areas of jewellery are yet
diamonds, but not      to be highlighted in the Hong Kong market, which is one
as fastest growing     of the largest exporters of precious jewellery in the world.
jewellery exporter     Since India already has made inroads into this market with
in the world.          limited range of products, Indian exporters can also
                       concentrate on expanding their product range. Hong
Kong could be one of the top focuses in India’s efforts to reach out to new
markets in the region with a wider product range. Indian exporters can make use
of the Indian community in Hong Kong of which a substantial number of Indians
are involved in the gems and jewellery sector.

One of Hong Kong’s major strengths as a trading hub in the region is its
dynamic adaptability in choosing its import sources and export
destinations. Even under the pearls, gems and jewellery sector, Hong Kong is
continuously looking for new sources of supply and new partners to collaborate to
maximise its profits. New players are gaining the market share by offering a
competitive alternative, in terms of cost, design appeal, niche products, etc. For
example, UAE, a new entrant to the Hong Kong market in 2000, under the item
non-industrial sorted diamonds, un-worked (SITC: 66722), has gained 29.4% of
the market in 2002 with its exports reaching US$236 million. India’s exports have
increased from US$13 million (share 3.5%) in 1999 to US$61 million (share 7.6%)
in 2002.




6                                                                Consulate General of India, Hong Kong
EXPORTING PEARLS, GEMS AND JEWELLERY TO HONG KONG




While India’s export value grew from US$1,634 million in 2001 to US$1,825
million in 2002, its share in the Hong Kong’s market declined from 40.1% to
37.4%. This is because of the fact that Hong Kong’s overall imports in this sector
are growing at a faster rate than India’s exports to Hong Kong.

India’s Export Potential

India has a very long tradition of gems and jewellery manufacturing and export.
The gems and jewellery industry provides employment to over 2.5 million people
in India. Indian gems and jewellery industry is a crowing jewel of India’s export-
led growth. It is the leading foreign exchange earner as well as the fastest growing
industry in terms of export, with a remarkable growth rate of 10%. In 2001-02,
gems and jewellery exports from India amounted to US$7.53 billion, or nearly
one-fifth of the country’s total exports. The industry has registered a dramatic
growth within a decade, with exports having shot up from US$2.93 billion in
1991-92 to its present level.

India is the largest  Today, India is the largest manufacturer and exporter of
manufacturer and      polished diamonds, is the fastest growing jewellery exporter
exporter of           and aspires to become a major trading centre. Diamond
polished              manufacturing sector contributes about 80% to the total
diamonds, is the      gems and jewellery export basket. This also accounts for
fastest growing       55% of the world supply in terms of value, 80% in terms of
jewellery exporter    caratage and 90% in terms of pieces. This means that nine
and largest           out of ten stones set in jewellery worldwide come from
consumer of gold
                      India. India is also the largest consumer of gold on the
on the planet.
                      planet, with a demand of over 850 tonnes, which is 1/3rd of
                      the gold consumption on the planet. Naturally, India is also
the largest fabricator of gold. Despite its huge domestic demand, India is
emerging as the fastest-growing jewellery exporter in the world, with an average
growth of 44% over the last decade.

Strategies for Entering Hong Kong Market

Exhibitions

Hong Kong              Indian pearls, gems and jewellery exporters can make a
exhibitions cater      good beginning to enter the Hong Kong market by
also to                participating in pearls, gems and jewellery related Hong
international          Kong exhibitions. Indian companies participate in related
buyers from North      Hong Kong fairs like the Hong Kong International
America, Europe,       Jewellery Show, Hong Kong Jewellery and Watch Fair, etc.
Japan, Korea,          Gems and Jewellery Export Promotion Council of India
Mainland China,        organises India pavilions in these fairs. These exhibitions
etc. Trade figures
                       not only cater to the local Hong Kong traders but also to
do not reflect this.
                       major buyers from all over the world, including North
                       America, Europe, other Asian countries like Japan, Korea,




Consulate General of India, Hong Kong                                            7
                 EXPORTING PEARLS, GEMS AND JEWELLERY TO HONG KONG




etc. Hong Kong pearls, gems and jewellery exhibitions can also provide an
opening to enter Mainland China market, as scores of Mainland China traders and
manufacturers visit Hong Kong exhibitions.
Exhibition Services by the Consulate

Indian pearls, gems and jewellery exporters desiring to participate in these
exhibitions can contact the Consulate General of India for updated information
about these fairs, including relevance of these exhibitions to their products, track
record of the exhibitions regarding visitor profile and turnout, calendar, contact
details of the organisers, etc. A list of important Hong Kong importers of that
particular product can also be provided to facilitate pre-exhibition promotion and
meeting arrangements.

For organising         For an Indian organisation organising an India pavilion,
India pavilion,        support is given in terms of identifying a stall construction
comprehensive          contractor, stall designs, execution and facilities for Indian
support is given.      exhibitors, arranging interpreters, booth assistants, etc.

Market Access Initiative

Indian pearls, gems and jewellery export organisations can provide impetus to the
focus on the Hong Kong market by planning Market Access Initiatives (MAI) for
Indian exporting companies. To participate in pearls, gems and jewellery trade
fairs in Hong Kong, MAI can be structured so that over a period of three years,
the exporters get the support to participate in Hong Kong trade fairs by way of
getting, say 75%, 50%, 25% of the cost of participation from the organisation.
After the third year, the individual company will be able to participate on its own
having realised the potential of the market and the trade volume. Focus can be on
the regions in India, which need additional thrust to promote local products and
capabilities through International exhibitions.

Bringing all the        Even though the number of Indian companies participating
Indian companies        in the exhibition can increase on its own by the potential of
under India             the market, if all the Indian pearls, gems and jewellery
pavilion would          exporting companies are brought under India pavilion
provide a greater       organised by the export organisations of India, this would
business impact.        provide a greater business impact. All these stalls would be
                        decorated with an Indian theme and this would project the
size of Indian participation in the exhibition and India’s interest in the market.

Business Delegations

Indian pearls, gems and jewellery export organisations can organise business
delegations to Hong Kong. These delegations can be composed of select
exporters whose products have more relevance to the Hong Kong market.
Complete information about the members of the delegation along with their trade
interest may be made available to the Consulate General of India, Hong Kong.
The Consulate would arrange business interactions with pearls, gems and jewellery
industry associations, major importers, buying offices, etc., in Hong Kong. The
Consulate General of India, Hong Kong can also arrange general business



8                                            Consulate General of India, Hong Kong
EXPORTING PEARLS, GEMS AND JEWELLERY TO HONG KONG




meetings with pearls, gems and jewellery traders who are members of other
chambers of commerce in Hong Kong. Delegations can interact with
government bureaux and agencies to learn about the standards, rules and
regulations to be followed when Indian pearls, gems and jewellery products are
exported to Hong Kong. Technical details in the two standard regimes between
India and Hong Kong can be discussed and options for creating common
standards can be explored.
Study

Indian pearls, gems and jewellery exporting organisations can initiate a deeper
study for individual products like precious metal jewellery, fashion jewellery,
coloured stones etc. These studies can be made comprehensive by getting
detailed information about the market for the particular product from various
sources in Hong Kong including Government bureaux and agencies, industry
associations, importers, buying offices etc. Indian companies wanting to explore
the market can also approach the Consulate for essential information like trade
figures, updated information on rules and regulations, etc.
Trade and Investment Queries

The Consulate       Indian organisations and companies interested in entering
encourages trade    the Hong Kong pearls, gems and jewellery market can
queries by email    make use of the Consulate’s trade matching services.
and its website     Consulate General of India can provide a list of matching
has a unique        business contacts in the Hong Kong pearls, gems and
feature called      jewellery sector, including telephone, fax and email details.
‘Online Trade       In case of organisations, this can be circulated among the
Queries’.           members of the organisation. Information about Indian
                    business organisations and companies wanting to find
partners in Hong Kong are also circulated to important business organisations in
Hong Kong. The Consulate encourages trade queries through email. All queries
can be sent to commerce1@indianconsulate.org.hk
Newsletters

Indian pearls, gems and jewellery export organisations and companies can
subscribe to the free e-newsletter published by the Consulate General of India,
Hong Kong called “Business Opportunities in Hong Kong”. This newsletter
contains business information including economic developments in Hong Kong,
trade queries, tender notices, briefs about important commercial associations,
forthcoming business conferences and trade fairs, etc. In case of organisations,
this valuable business information can be disseminated to the members of the
organisations either by emailing the same to their members, or by publishing the
details on the organisation’s website. Organisations and companies can subscribe
by sending an email to commerce2@indianconsulate.org.hk or can visit the
Consulate’s website to subscribe online (http://www.indianconsulate.org.hk)

Indian pearls, gems and jewellery organisations and companies can utilise
“Business Opportunities in India”, another free e-newsletter published to
project the capabilities of the associations in catering to the needs of an importer



Consulate General of India, Hong Kong                                            9
                 EXPORTING PEARLS, GEMS AND JEWELLERY TO HONG KONG




from Hong Kong pearls, gems and jewellery market. In case of organisations, the
role and functions of the organisation with full contact details can be provided.
This information would be circulated to important business organisations, apart
from individual business people of Hong Kong. This newsletter can also be
utilised to advertise various trade fairs and business events organised in India for
the pearls, gems and jewellery products export. Indian pearls, gems and jewellery
export organisations can write to the Consulate General of India, Hong Kong
with full details about the event, which can be highlighted in the newsletter.
Indian organisations and companies wishing to provide information about the
organisation and company can send an email with the details to
commerce1@indianconsulate.org.hk
Business Centre

The Consulate offers many services through its business centre including meeting
venue, conference venue, computer, telephone and fax facilities, identifying and
hiring of local assistants, interpreters, translators, etc.

Website

The Consulate’s        The Consulate’s website provides relevant and updated
website, with its      business information, including on India-Hong Kong trade
advanced               and investment, reports on Hong Kong economy,
features, provides     information on doing business in Hong Kong, opening an
relevant and           office in Hong Kong, etc. Contact details of Indian
updated business       business organisations in Hong Kong are also given. The
information.           website features Online Trade Queries, an interactive
                       database providing information on business contacts in
Hong Kong and India. Business visitors can search business contacts based on
name of the product, company, SITC code, importing or exporting, etc. Visitors
can also register online so that their information is added to the database. Direct
access links for membership database of important commercial organisations in
Hong Kong are also provided. Online subscription forms, latest issues and
archives, of the Consulate’s e-newsletters are also available. A useful list of
important web links to Hong Kong is provided. For further information, please
visit:

http://www.indianconsulate.org.hk

Further Information

List of key           Extensive list of key contacts and support services both in
contacts and          India and in Hong Kong with reference to Indian export of
support services      pearls, gems and jewellery to Hong Kong are given at the
are given at the      end of the report. Apart from the many email addresses
end of the report.    and website addresses provided in the report, a separate list
                      of important websites that would be useful for an Indian
pearls, gems and jewellery exporter to Hong Kong market is also appended for
ready reference. Consulate General of India would be happy to assist any
individual exporter or Organisation in exporting pearls, gems and jewellery to
Hong Kong.



10                                          Consulate General of India, Hong Kong
EXPORTING PEARLS, GEMS AND JEWELLERY TO HONG KONG




Opportunities in Mainland China

Chinese domestic      Hong Kong not only acts as an outward port for pearls,
market for            gems and jewellery from Mainland China, but also
jewellery was         functions as a gateway to enter Mainland China market.
about US$9.65         Spending on jewellery alone in the country is rising at an
billion.              average rate of 10% annually. In 2001, Chinese domestic
                      market for jewellery was about US$9.65 billion. China is
expected to become the world’s leading jewellery consumer and processor by year
2010. China also has a large requirement of industrial diamonds. Some Indian
companies have already set up joint ventures in this field and this trend is likely to
grow further. With the acceleration of the process of urbanisation, overall
improvement in living standards and the increase in purchasing power of the
middle class would transform into greater demand for pearls, gems and jewellery
products.
Services offered by the Embassy of India, Beijing

Embassy of India, Beijing can provide valuable services to the Indian pearls, gems
and jewellery organisations and companies pursuing economic links with
Mainland China, including business match-making for trade and investment
queries, providing information about relevant exhibitions, arranging meetings for
the visiting business delegations, providing resources and inputs for product
studies, etc. The Embassy operates a business centre and provides important
information through its website http://www.indianembassy.org.cn.




Consulate General of India, Hong Kong                                              11
                                                                          1
                                                                             Intro




1. Introduction
Vast and Promising Scope



T       he Consulate General of India, Hong Kong is happy to bring out
        “Exporting Pearls, Gems and Jewellery to Hong Kong – A Guidebook”.
        This publication is meant to assist India trade promotion organisations and
export companies involved in exporting Indian gems and jewellery. According to
Standard International Trade Classification (SITC) codes this report covers pearls,
precious and semi-precious stones (SITC: 667) and Jewellery (SITC: 897). The
following table provides information regarding the products covered along with
their Standard International Trade Classification (SITC) codes:
                                       PRODUCTS COVERED

                CATEGORY: PEARLS, PRECIOUS AND SEMI-PRECIOUS STONES (SITC: 667)
                   SITC                                DESCRIPTION
                  66711      Natural pearls
                  66712      Cultured pearls, un-worked
                  66713      Cultured pearls, worked
                  66721      Diamonds, rough and unsorted
                  66722      Non-industrial diamonds, un-worked, sorted
                  66729      Non-industrial diamonds, worked, not mounted
                  66731      Precious and semi-precious stones, un-worked
                  66739      Precious and semi - precious stones
                  66741      Piezo-electric quartz Stones
                  66742      Synthetic or reconstructed gemstones, un-worked
                  66749      Synthetic or reconstructed gemstones, NES
                CATEGORY: JEWELLERY (SITC: 897)
                   SITC                                DESCRIPTION
                  89721      Imitation jewellery of base metal
                  89729      Imitation jewellery of other non-precious materials
                  89731      Articles of jewellery, of precious metal
                  89732      Goldsmiths’ and silversmiths’ wares, precious metal
                  89733      Articles of pearls, precious or semi-precious stones
                  89741      Platinum wire or grill catalysts
                  89749      Other articles of precious metal

This report aims to provide an overview of Hong Kong’s pearls, gems and
jewellery market and the present position of India’s exports to this market under
these categories. This report also attempts to cover India’s potential in the pearls,
gems and jewellery exports, especially in the areas relevant to Hong Kong’s pearls,
gems and jewellery market. It analyses India’s present position vis-à-vis major
suppliers to Hong Kong’s pearls, gems and jewellery market. Key contacts and
support services in India are given. This would provide the essential first step for
Indian exporters to contact the relevant organisation in India. In addition, details
about market entry opportunities in India are also given. Moreover, key contacts
and support services in Hong Kong have been provided. These include list of
important importers of the commodities covered under the report. Moreover, a



Consulate General of India, Hong Kong                                                13
                EXPORTING PEARLS, GEMS AND JEWELLERY TO HONG KONG




detailed section on market entry opportunities in Hong Kong is also given.
Sections on Mainland China have been included.

We are confident that this report would offer good opportunity for Indian
organisations and companies to take the first step towards their exploration into
the Hong Kong pearls, gems and jewellery market or to enhance their existing
pearls, gems and jewellery trade related operations with Hong Kong.

We have included a ‘Reader Evaluation Form’ at the end of the report. Kindly
provide your feedback to us, which would help us in fine-tuning our future
reports to suit your needs.




14                                         Consulate General of India, Hong Kong
                                                                  2
                                                                     Part




2. Hong Kong Import Scope
Hong Kong Economy
Hong Kong: Basic Facts
Hong Kong Market
Market Dynamics

2.1 Hong Kong Economy



H         ong Kong is one of the top ten trading economies in the world with an
          annual trade of more than US$400 billion. It has the world's second
          highest per capita holding of foreign currency. It is the second largest
source of outward foreign direct investment in Asia. It has the world's fifth largest
foreign exchange reserves holding. It is the world's ninth largest (sixth, if EU
countries are regarded as one entity) trading economy and the world's ninth largest
exporter of commercial services. Hong Kong has the world's busiest airport in
terms of international cargoes and the world's busiest container port. It is Asia's
largest gold bullion market, the fourth largest in the world. Hong Kong’s stock
exchange is Asia's second largest stock market, the 9th largest in the world. It is
also Asia's third largest foreign exchange market in terms of turnover.

Changing Structure of Economy

A large share of         Hong Kong is also a major re-export centre for the Asia-
Hong Kong                Pacific region and a premier trade hub for intra-Asian trade,
manufacturing            as well as trade between the East and the West and between
capacity has been        the Mainland China and the rest of the world. Although
shifted over the         some domestic industries, notably electronics, have
border into              continued to expand over the past decade, since the early
Mainland China.          1980s a large share of Hong Kong manufacturing capacity
                         has been shifted over the border into Mainland China in
order to take advantage of lower operating costs. The relative decline in Hong
Kong’s manufacturing sector has been accompanied by the rapid development of
its service industries, leading to growth in service exports. However, in general,
growth in merchandise exports outpaced growth in service exports, due to the
rapid growth in re-export business, resulting from the export boom in the Pearl
River Delta and the increase in indirect trade through Hong Kong between China
and other countries.

Regional Hub

Hong Kong is also a regional leader in logistics and trade-supporting services,
such as product testing and inspection, arbitration and mediation, trade finance


Consulate General of India, Hong Kong                                               15
                       EXPORTING PEARLS, GEMS AND JEWELLERY TO HONG KONG




documentation and insurance. As China liberalises its markets due to its WTO
membership commitments, Hong Kong firms are increasingly active in
connecting suppliers in other countries with consumers in the Chinese Mainland
and elsewhere in Asia. Hong Kong is the leading financial centre of Asia and is
one of the top sources of outward direct foreign investment in Asia.

‘One Country – Two Systems’

Hong Kong’s trade     Hong Kong remains a separate economic entity under the
with Mainland         One Country – Two Systems policy. The Basic Law
China is treated as   guarantees that Hong Kong will retain its free trade, free-
part of the foreign   enterprise environment for at least 50 years. Economic
trade.                policy in post-handover Hong Kong continues so far on
                      the same ‘positive non-interventionist’ lines as under British
administration. It has maintained its simple-and-low tax system and its own
currency. The Hong Kong dollar continues to be backed by a 100% reserve fund.
The Hong Kong dollar remains convertible and exchange controls have not been
imposed; the free flow of capital into and out of Hong Kong is safeguarded.
Hong Kong continues as a separate Customs territory distinct from Mainland
China and trade with Mainland China is treated as part of the foreign trade. Hong
Kong continues as a free port with its own trade policy while Mainland China is a
tariff economy. Hong Kong remains a separate member of the major
international economic organisations, such as the World Trade Organisation
(WTO), World Customs Organisation (WCO) and the Asia-Pacific Economic
Cooperation (APEC) forum, etc.

2.2 Hong Kong: Basic Facts
                                               ECONOMIC GROWTH
GDP: US$163 billion (2002)
GDP Per Capita: US$24,011 (2002)
Total exports to the World: US$200 billion (2002)
Re-exports to the World: US$183 billion (2002)
Total imports from the World: US$208 billion (2002)
                                                       AREA
Total Area: 1100 km2
                                          GDP BY ECONOMIC ACTIVITY
Economic Activity                                             Contribution to GDP
Agriculture and fishing                                       0.1
Industry                                                      14.3
Services                                                      85.6
                                    CHANGE IN THE CONSUMER PRICE INDICES
2002                                                          -3
                                     REGIONAL OPERATIONS IN HONG KONG
                                    (Set up by companies incorporated outside HK)
No. of companies that are regional headquarters               1996: 816; 2002: 948
Number of companies that are regional offices                 1996: 1,491; 2002: 2,171
                                     BEST LENDING RATE (PERIOD AVERAGE)
2002                                                          5.11
                                                 AIR MOVEMENTS
206 677 flights; 33.5 million passengers, 2.5 MT freight (2002)
                                                     SHIPPING
Container throughput: 19 million TEUs (2002)
                                                   POPULATION

6.77 million (as at mid-2002)
                                                  NATIONALITIES
Predominantly of Chinese descent                               95%
Total foreign passport holders (end 2001)                      526510




16                                                             Consulate General of India, Hong Kong
EXPORTING PEARLS, GEMS AND JEWELLERY TO HONG KONG




2.3 Hong Kong Market

Market Overview

Hong Kong imports over US$6 billion worth of pearls, gems and jewellery
annually. Hong Kong's imports in the sector grew from US$4.5 billion in 1999
(+31.3%) to US$5.7 billion in 2000 (+25.5%). There was a slight dip during 2001,
mainly due to the impact of September 11, during which Hong Kong's imports
declined by -6% to reach US$5.3 billion. However, in 2002, Hong Kong's
imports grew by +18.8% to reach US$6.3 billion.

Out of Hong          Hong Kong exports over US$5 billion worth of pearls,
Kong’s US$5.4        gems and jewellery annually. Hong Kong's exports in the
billion imports,     sector grew from US$3.5 billion in 1999 (+26.8%) to
US$4.7 were          US$4.6 billion in 2000 (+31%). Again, due to the impact of
actually re-         September 11, Hong Kong's exports suffered heavily
exports.             declining from +31% to -4.2% in 2001 and the value of its
                     exports reached US$4.4 billion. However, in 2002, Hong
Kong's exports grew by +22.1% and reached US$5.4 billion.

Hong Kong re-exports over US$4.5 billion worth of pearls, gems and jewellery
annually. Hong Kong's re-exports grew from US$2.8 billion in 1999 (+33.3%) to
US$3.8 billion in 2000 (+34.5%). After a limited decline of - 1% during 2001,
during which Hong Kong's re-exports reached the value of US$3.77 billion, it
again grew by +24.8% in 2002, to reach the value of US$4.7 billion.

As seen from above, Hong Kong being a major trading hub, its imports, exports
and re-exports are largely in sync with each other.

Hong Kong is the second largest exporter of precious jewellery in the world.
However, about 3/4th of its precious jewellery exports are in fact re-exports. The
value of Hong Kong’s annual imports of precious jewellery is reaching US$1.5
billion. Similarly, out of Hong Kong’s annual exports of pearls and gems of
US$2.96 billion, 99% are in fact re-exports, with the value of US$2.92 billion.
Hong Kong is one of the leading production centres of pure gold items and jade
jewellery. It is also evolving into a leading trading and distribution centre for
pearls in the recent years. Hong Kong is the leading exporter of imitation
jewellery trade in the world.

However, it is to be noted that offshore trade is not being captured by the
ordinary trade figures of Hong Kong’s foreign trade, the statistics do not
necessarily reflect the export business managed by Hong Kong companies.

Import of jewellery to Hong Kong is not subject to import regulations.
Application of import licence is not required. The Hong Kong Special
Administrative Region of the People's Republic of China (HKSAR of the PRC) is
a free port and does not levy any Customs tariff on imports. There is also no
tariff quota or surcharge. There is no value added or general services taxes either.
Excise duties are levied on only four types of goods irrespective of whether they



Consulate General of India, Hong Kong                                            17
                       EXPORTING PEARLS, GEMS AND JEWELLERY TO HONG KONG




are imported or locally manufactured.                          These goods are liquors, tobacco,
hydrocarbon oil and methyl alcohol.

Product Overview
Pearls and Gems

Pearls, precious and semi-precious stones formed 77.3% of Hong Kong’s total
imports in 2002 under the pearls, gems and jewellery sector. During this period,
the value of Hong Kong’s total imports of pearls and gems was US$4,876 million,
which saw a growth of +19.7%. It is to be noted that during the same period, the
value of Hong Kong’s re-exports under this category was US$2,924 million
(+27.3%), forming 99% of its exports, which were valued at US$2,964 million
(+26.3%).
Jewellery

In 2002, the value of Hong Kong’s imports of jewellery was US$1,435 million,
which saw a growth of +16.1% and formed 22.7% of Hong Kong’s total intake
of pearls, gems and jewellery. During the same period, Hong Kong exported
US$2,442 million worth of products under this category (+17.4%), of which
US$1,781 million were re-exports (+20.9%). Of the products produced in Hong
Kong, the gem-set jewellery is the most popular one, particularly diamonds set in
14K or 18K gold.

2.4 Market Dynamics

New Opportunities

China’s entry into the WTO comes with its commitment to lower the import
tariff on most finished precious-jewellery in phases. Tariffs on precious jewellery
have been reduced from a range of 30-38.75% to 26.7 to 35% effective from 1st
January 2003. Import tariffs for diamonds have been shifted but the trade is now
required to go through the customs located inside the Shanghai Diamond
Exchange, which opened in October 2000. The Shanghai Gold Exchange,
opened in October 2002, introduced market prices to the Mainland’s gold trade
for producers and wholesalers, marking the early steps to liberalisation of China’s
gold market. The following table provides information about China’s tariff
reduction schedule for jewellery imports.
                    CHINA'S TARIFFS REDUCTION SCHEDULE FOR JEWELLERY IMPORTS

                                                                RATE (%)      COMMITTED RATE (%)
HS CODE                      DESCRIPTION                       AT DATE OF    UNDER WTO AGREEMENT
                                                               ACCESSION    2002        2003    2004    2005
71131100 Jewellery & parts thereof, of silver                        33.3          30      26.7    23.3      20
71131910 Jewellery & parts thereof, of gold                          33.3          30      26.7    23.3      20
71131990 Jewellery & parts thereof, of other precious metal          36.7          35        35      35      35
         Jewellery & parts thereof, of base metal clad with
71132000                                                             36.7          35       35      35      35
         precious metal
71141100 Silversmiths' wares & parts thereof                         36.7          35       35      35      35
         Goldsmiths' wares & parts thereof, of precious
71141900                                                             36.7          35       35      35      35
         metal
         Gold/silversmiths' wares & parts thereof, of base
71142000                                                             36.7          35       35      35      35
         metal clad with precious metal
71161000 Articles of natural or cultured pearls                      42.5    38.75          35      35      35
71162000 Articles of precious or semi-precious stones                36.7       35          35      35      35




18                                                            Consulate General of India, Hong Kong
EXPORTING PEARLS, GEMS AND JEWELLERY TO HONG KONG




Due to the fast emerging Chinese pearl industry and the increased demand Hong
Kong is emerging as a leading trading and distribution centre for pearls in recent
years. Hong Kong, with its global experience as a trading hub has established new
links and enhanced its existing links to expand its markets for pearl trade. Indian
exporters of pearl and articles of pearl can use Hong Kong also as one of their
routes to reach out to new markets and buyers around the world.
Production Aspects

Advanced               Recent technological development allows massive
production             production of jewellery products with good quality and
techniques are         competitive prices. While the jewellery industry around the
integrated with        world remains basically a handicraft industry, a number of
handicraft skills.     larger establishments have made use of sophisticated and
                       automated production equipments. Advanced production
techniques, such as eletroforming, are integrated with handicraft skills to enhance
their efficiency.

Although value-added processes are still retained in Hong Kong, manufacturing
processes are increasingly being shifted to Mainland China, mainly Shenzhen and
Panyu. Industrial observers point out that manufacturing processes with less
stringent quality requirements are increasingly being shifted to Mainland China,
while the more delicate, higher value-added processes largely remain in Hong
Kong.

According to a survey conducted by Oracle Market Research for Hong Kong
Trade Development Council, there are currently about five in-house designers in
every Hong Kong jewellery factory, compared to about two in 2001-02. Hong
Kong manufacturers expect the number to rise to about six designers per factory
in three years’ time. The focus on design in the production process is getting
accentuated.
Product Trends

Increasingly more players in the pearls, gems and jewellery sector make use of
computer aided design (CAD) technology to shorten the time cycle for product
development. Computer numerically controlled (CNC) machine tools are also
increasingly employed by many manufacturers to meet the stringent needs of
quality control and standard specifications. Suppliers with these facilities would be
able to match and deliver the specifications to trading hubs like Hong Kong in a
smoother way.

Jewellery designs have been increasingly influenced by the apparel fashion. Apart
from the luxury market of feminine and romantic pieces of jewellery, the demand
is growing for jewellery that is wearable with most of the modern dresses,
including jeans, etc. The growth of youngsters as buyers in the market heightens
this trend.

While fashion decides the jewellery design, sometimes jewellery itself becomes
part of fashion. This trend is on the rise. Large fashion retail chains, for example,
Chanel in Europe are offering fashion jewellery as accessories, complementing


Consulate General of India, Hong Kong                                             19
                 EXPORTING PEARLS, GEMS AND JEWELLERY TO HONG KONG




their new lines of fashion. Such developments would contribute to an increase
demand for elegant and romantic diamonds, which are expected to top the list of
the jewellery buyers while semi-precious stones and colour crystals targeting the
minimum of lower-end scheme are also likely to move fast. Turquoise and coral
accessories are also expected to rise in the fashion scale.

Innovations are always in demand in the gems and jewellery industry. Trends like
two-tone jewellery are offering new look and feel for the consumers. Typically a
blend of yellow and white gold, two-tone jewellery is seen in the market offering
modern and sophisticated look. Due to increased global industry of gems and
jewellery market and the need for global competitiveness, trading hubs like Hong
Kong expect their suppliers to have and practice qualities like prompt delivery,
innovative designs, impeccable artisanship, quality assurance instead of quality
control, flexible production, reasonable prices, etc.

Marketing Channels

On marketing and distribution, jewellery manufacturers are building up individual
branded jewellery or having licensing agreements. This has created a necessity for
the jewellery manufacturers to move into distribution also. Separately, a rapid
development of on-line shopping, though yet to achieve the critical mass, is also
noteworthy. The concept of brick-and-click, combing direct sales outlets with on-
line product showcasing is expected to continue at least for the coming few years.

Though Hong Kong’s jewellery scene is largely oriented towards export trade, the
local retain and distribution channels are also gaining importance. This is mainly
helped by the tourism industry. The Hong Kong Tourist Board estimated that
tourist expenditure on jewellery amounted to about US$1 billion in 2001, of which
two-thirds were attributed to visitors from Mainland China. Hong Kong
companies with own brand names have started entering into Mainland Chinese
market by opening their retail centres also.

Consolidation          Like other industrial sectors, the trend of consolidation also
provides greater       happens in the jewellery industry. This trend is noticeable
bargaining power       globally including in the Western markets. For example, in
to buying offices.     the USA, big players such as Wal-Mart, Target, Costco, K-
                       Mart, etc have captured a bigger share of consumer
spending. A recent survey by Search and Markets Limited reported that 20% of
fine jewellery shoppers in the USA purchase in these outlets. This trend changes
the dynamics of the market by providing stronger bargaining power to these
players against the individual suppliers. Trading hubs like Hong Kong are
continuously under pressure to find jewellery products at competitive price and
world-class quality to win buyers’ orders.

Standards and Rules

The trading of ‘conflict’ diamonds is a new concern for the gems and jewellery
industry. The UN defines the conflict diamonds as diamonds that originate from
areas controlled by forces and factions opposed to legitimate and internationally
recognised governments and are used to fund the militia in opposition to those
governments. Conflict diamonds, also called as ‘blood diamonds’, originated in


20                                           Consulate General of India, Hong Kong
EXPORTING PEARLS, GEMS AND JEWELLERY TO HONG KONG




several war-torn African countries, including Angola, Congo, Sierra Leone, etc.
Several non-governmental organisations have called for the attention to the fact
that diamonds from these sources might have been sold through illegal channels
to finance civil wars and conflicts in these regions. In response, a World
Diamond Congress was held in Antwerp on 17 July 2000 in which The World
Federation of Diamond Bourses and The International Diamond Manufacturer
Association (IDMA) passed a 9-point plan in line with the UN Resolution to
clamp down on conflict diamonds. This includes standardisation of certificate
amongst the diamond exporting countries, transparency, auditing and monitoring
of the regime and new legislation against those who fail to comply, etc.

Hong Kong            Hong Kong has introduced the certification scheme since
companies have to    2nd January 2003.         Accordingly, Indian companies
obtain Kimberley     exporting or importing rough diamonds to Hong Kong
Process              should do so with Hong Kong companies, which are
Certificates for     registered with the Trade and Industry Department. These
dealing with rough   Hong Kong companies are required to obtain Kimberley
diamonds.            Process Certificates (KPC) issued by the Trade and
                     Industry Department before the import and export of
rough diamonds. However, Indian export of diamonds is largely concentrated in
polished diamonds and hence to that extent Indian export of diamonds to Hong
Kong is insulated from the teething trouble of inspection regime. Restriction of
conflict diamonds may at the most influence the price of rough diamonds in the
market and this may have an indirect impact on our polished diamond prices in
the world market as India imports 1/3 of the global roughs that go into making
polished diamonds. Alternatively, India can look to buying more roughs from
other sources. Hence, one can safely conclude that prohibition of ‘Conflict
Diamonds’ is unlikely to disrupt Indian diamond trade, at least in the immediate
future.

Environmental and health concerns continue to be important factors in gems and
jewellery trade. In the EU, imports of jewellery containing nickel, which could
cause allergic reactions when in contact with skin, have been banned. Fashion
jewellery products using other materials are in need as replacements to the EU
market in this regard.




Consulate General of India, Hong Kong                                        21
                                                                3
                                                                   Part




3. India’s Export Scope
Major Exporters to Hong Kong
India’s Exports to Hong Kong
India’s Share and Future Scope

3.1 Major Exporters to Hong Kong



H        ong Kong’s Pearls, Gems and Jewellery market is dominated by a few
         players. Here details about major suppliers under different categories
         with details of each item are given. All figures under this section pertain
to 2002 unless otherwise specified.

Pearls and Gems

Pearls
Natural Pearls

Hong Kong’s imports under natural pearls (SITC: 66711) is on the decline. In
2002, the value of Hong Kong’s imports under this item was US$179,000 (-
93.7%). Japan is the leading exporter with 49% market share (US$88,000, growth
–94.5%), followed by Switzerland (US$51,000, growth -88.7%, share 28.7%), the
USA (US$22,000, growth – 94.3%, share 12.3%).
Cultured Pearls, Un-worked

Indonesia enjoys    Indonesia is the leading exporter of cultured pearls, un-
47.6% share in      worked (SITC: 66712) to Hong Kong. It enjoys 47.6%
Hong Kong’s         share in the Hong Kong’s market with exports worth
import of cultured  US$40 million (+20.3%).          This is followed by
pearls, un-worked.  Australia/Oceania (US$13 million, growth +100.4%, share
                    15.6%), China (US$8 million, growth +45.9%, share 9.2%),
the USA (US$5 million, growth +41.6%, share 6.6%) and Japan (US$5 million,
growth +-35.8%, growth 6.3%)
Cultured Pearls, Worked

Australia is the leading exporter of cultured pearls, worked (SITC 66713) to Hong
Kong’s market, which enjoys 34.3% share in the market (US$52 million, growth –
4.1%). This is followed by Japan (US$41 million, growth –36.8%, share 27.2%),
Australia / Oceania (US$22 million, growth +26.0%, share 14.7%), China (US$20
million, growth +15.5%, share 13.1%) and the USA (US$7 million, growth –
33.9%, share 4.4%)



Consulate General of India, Hong Kong                                             23
                  EXPORTING PEARLS, GEMS AND JEWELLERY TO HONG KONG




Diamonds
Diamonds, Rough, Unsorted

Belgium is the leading exporter of diamonds, rough, unsorted (SITC 66721)
which enjoys 86% share in Hong Kong’s market. The value of Belgium’s export
under this item reached US$11.5 million (+54.3%) followed by Israel (US$0.7
million, growth +392.9%, share 5.4%), Singapore (US$0.6 million, share 4.8%.
Singapore entered Hong Kong’s market under this item only in 2002). India is the
fourth largest exporter of this item to Hong Kong (US$0.3 million, growth
+2.4%, share 2.4%), followed by the USA (US$0.2 million, growth +5%, share
1.4%)

Non-Industrial Sorted Diamonds, Un-worked

UAE is the leading exporter of non-Industrial sorted diamonds, un-worked (SITC
66722), which enjoys 29.4% share in Hong Kong’s market (US$236 million,
growth +60.4%). This is followed by Israel (US$192 million, growth +42.3%,
share 23.9%), Belgium (US$185 million, growth +19.8%, share 23.0%), United
Kingdom (US$72 million, growth 32.0%, share 9.0%) and India (US$61 million,
growth –30.6%, share 7.6%).

Non-Industrial Diamonds, Worked, Not Mounted

                   India is the leading exporter of non-Industrial diamonds,
India is the leading
exporter of non-   worked, not mounted (SITC 66729) to Hong Kong, which
Industrial         enjoys 48.4% share in the market with the value of exports
diamonds to Hong   reaching US$1738 million (+14.1%). This is followed by
Kong with 48.4%    Israel (US$541 million, growth +28.5%, share 15.0%),
share.             Belgium (US$463 million, growth +44.5%, share 12.9%),
                   the USA (US$413 million, growth +9.9%, share 11.5%)
and China (US$135 million, growth +23.3%, share 3.8%).

Coloured Stones
Precious & Semi- Precious Stones, Un-worked

Myanmar is the leading exporter of precious & semi- precious stones, un-worked
(SITC 66731) to Hong Kong, which enjoys 18.5% share in the market with the
value of exports reaching US$8 million (+46.1%). This is followed by the USA
(US$7 million, growth +41.6%, share 17.0%), South Africa (US$5 million, growth
+37.9%, share 12.3%), Brazil (US$5 million, growth –18.5%, share 11.0%) and
Zambia (US$3 million, growth +109.2%, share 6.0%).

Precious & Semi-Precious Stones, Worked

USA is the leading exporter of precious & semi-precious stones, worked (SITC
66739) to Hong Kong, which enjoys 29.6% share in the market with the value of
exports reaching US$45 million (+36.0%). This is followed by Thailand (US$31
million, growth +22.3%, share 20.3%), India (US$24 million, growth +18.7%,
share 15.9%), China (US$12 million, growth 37.8%, share 8.2%) and Switzerland
(US$9 million, growth –27.7%, share 5.7%).




24                                        Consulate General of India, Hong Kong
EXPORTING PEARLS, GEMS AND JEWELLERY TO HONG KONG




Piezo-Electric Quartz Stones

Taiwan is the leading exporter of piezo-electric quartz stones (SITC 66741) to
Hong Kong which enjoys 76.1% share in the market with the value of exports
reaching US$8 million (-6.9%). This is followed by China (US$2 million, growth
+139.1%, share 20.8%), the USA (US$0. 1million, growth –17.8%, share 1.3%),
Russian Federation (US$0.08 million, growth –27.7%, share 0.7%) and Germany
(US$0.06 million, growth +88.2%, share 0.6%).
Synthetic or Reconstructed Gemstones, Un-worked

Russian Federation is the leading exporter of synthetic or reconstructed
gemstones, un-worked (SITC 66742) to Hong Kong, which enjoys 25.7% share in
the market with the value of exports reaching US$1 million (+61.7%). This is
followed by Japan (US$1 million, growth +80.2%, share 19.7%), Taiwan (US$1
million, growth +8.5%, share 14.1%), China (US$0.9 million, growth 121.3%,
share 13.2%) and France (US$0.5 million, growth –11.2%, share 7.3%)
Synthetic or Reconstructed Gemstones

China is the leading exporter of synthetic or reconstructed gemstones, NES (SITC
66749) to Hong Kong which enjoys 44.7% share in the market with the value of
exports reaching US$9 million (+3.3%), This is followed by Switzerland (US$8
million, growth –3.3%, share 36.9%), the USA (US$2 million, growth 0.5%, share
9.5%), Thailand (US$0.7 million, growth +67.0%, share 3.5%) and Singapore
(US$0.4 million, growth –47.2%, share 2.2%).

Jewellery

Imitation Jewellery
Imitation Jewellery of Base Metal

China is the leading exporter of imitation jewellery of base metal (SITC: 89721) to
Hong Kong which enjoys 74.9% share in the market with the value of exports
reaching US$117 million (+11.0%), Macau SAR (US$10 million, growth +43.9%,
share 6.1%), Germany (US$8 million, growth +67.4%, share 5.3%), the USA (
US$4 million, growth –0.7%, share 2.7%) and Singapore (US$3 million,
substantial growth above 1000%, share 2.2%).

Imitation Jewellery of Other Non-Precious Materials

China is the leading exporter of imitation jewellery of other non-precious materials
(SITC: 89729) to Hong Kong which enjoys 80.8% share in the market with the
value of exports reaching US$23 million (-13.1%). This is followed by France
(US$2 million, growth +155.2%, share 6.4%), the USA (US$0.9million, growth –
43.7%, share 3.1%), Italy (US$0.4 million, growth –12.8%, share 1.4%) and
Thailand (US$0.3 million, growth +80.7%, share 1.2%).




Consulate General of India, Hong Kong                                            25
                   EXPORTING PEARLS, GEMS AND JEWELLERY TO HONG KONG




Precious Metal Jewellery
Articles of Jewellery, of Precio        us Metal

China is the leading exporter of articles of jewellery, of precious metal (SITC:
89731) to Hong Kong which enjoys 29.6% share in the market with the value of
exports reaching US$359 million (+19.2%). This is followed by Italy
(US$241million, growth +19.1%, share 19.9%), the USA (US$211 million, growth
+25.6%, share 17.4%), Switzerland (US$134 million, growth 31.1%, share 11.1%)
and France (US$43 million, growth +61.7%, share 3.6%).

Goldsmiths’ and Silversmith’s Wares, Precious Metal

China is the leading exporter of goldsmiths’ and silversmith’s wares, precious
metal (SITC: 89732) to Hong Kong which enjoys 74.0% share in the market with
the value of exports reaching US$7 million (-49.9%). This is followed by United
Kingdom (US$1 million, growth –33.8%, share 10.1%), Italy (US$0.5 million,
growth –57.9%, share 4.8%), Switzerland (US$0.4 million, growth –63.3%, share
4.3%) and Germany (US$0.2 million, growth –0.7%, share 2.4%).

Jewellery Articles
Articles of Pearls, Precious or Semi-Precious Stones

China enjoys          China enjoys a dominant share of 90.5% in Hong Kong’s
90.5% in Hong         total intake under articles of pearls, precious or semi-
Kong’s import         precious stones (SITC: 89733). It supplies products worth
under this item.      US$14.2 million (+29.8%). This is followed by the USA
                      (US$0.6 million, growth –76.9%, share 3.7%), Taiwan
(US$0.2 million, growth +109.4%, share 1.4%), Germany (US$0.1 million, growth
–57.7%, share 1.1%) and Japan (US$0.1 million, growth –74.4%, share 0.8%).
Platinum Wire or Grill Catalysts

Hong Kong’s market under platinum wire or grill catalysts (SITC: 89741) is rather
limited and it declined from US$91,000 in 2001 (+374.8%) to US$25,000 in 2002
(-72.5%). The newcomer Austria captured 75.8% of the market with its
US$19,000 exports. This is followed by Japan (US$4,000, growth –92.6%, share
16.1%), the USA (US$2,000, growth –0.9%, share 8.1%).

Other Articles of Precious Metal

Japan is the         Japan is the leading exporter of other articles of precious
leading exporter of  metal (SITC: 89749) to Hong Kong which enjoys 44.8%
other articles of    share in the market with the value of exports reaching
precious metal to    US$4 million, (+78.3%). This is followed by Switzerland
Hong Kong.           (US$2 million, growth +53.6%, share 21.4%), the USA
                     (US$1 million, growth +17.0%, share 12.3%), Taiwan
(US$1 million, growth +350.4%, share 12.2%) and United Kingdom (US$0.2
million, growth –52.4%, share 3.3%).




26                                         Consulate General of India, Hong Kong
EXPORTING PEARLS, GEMS AND JEWELLERY TO HONG KONG




3.2 India’s Exports to Hong Kong

India’s export of Gems and Jewellery to Hong Kong market has grown from
US$1,563 million in 1999 to US$1,854 million, with a growth rate of +11.7%, in
2002.

The gems and jewellery trade between India and Hong Kong is vibrant. Hong
Kong is the second largest export destination of Indian diamonds and it takes
27% of Indian exports in this category, valued at US$1,600 million. About 10%
of rough diamonds imported by India are also routed through Hong Kong,
valued at US$389 million during 2001-02. Hong Kong is again the second largest
export destination, with about 14% to 15% share, of India’s coloured gemstones,
valued at about US$15 million. Hong Kong is also the fifth largest export
destination of Indian gold jewellery, which reached US$38 million during 2000-01,
accounting for about 3% share. The following table provides information about
India’s gems and jewellery export destinations during 2001-02:
             INDIA’S GEMS AND JEWELLERY EXPORT DESTINATIONS (APRIL 2001 – MARCH 2002)
                                           (US$ million)
                   COUNTRIES                     DIAMONDS              TOTAL GEMS & JEWELLERY
             USA                                             1972.71                      2750.87
             Hong Kong                                       1600.11                      1638.36
             Belgium                                          842.35                       845.01
             Japan                                            329.22                       362.31
             Israel                                           263.85                       265.46
(Source: Gems and Jewellery Export Promotion Council, India)

One single product     Hong Kong’s total import of pearls, gems and jewellery has
alone contributes      reached US$6,310 million in 2002. Hence, India’s share in
94% of India’s         Hong Kong’s market is 29% (US$1,854 million). However,
total export value     India’s export basket under this sector is lop-sided with
to Hong Kong           only a few products contributing majority of the value.
under the pearls,      Except for one single item, namely, non-industrial
gems and               diamonds, worked, not mounted (SITC: 66729), India’s
jewellery sector.      share in almost all other products is meagre. This product
                       alone contributed 94% of India’s total export value of
pearls, gems and jewellery to Hong Kong in 2002 (US$1,738 million). In 2002,
the value of India’s exports to Hong Kong under pearls and gems was US$1,825
million and that of jewellery was US$29 million (98:2).

India’s export         Hence, India’s export basket needs to be more diversified
basket needs to be     and balanced. India is still known mainly as the leading
more diversified       exporter of cut and polished diamonds in the Hong Kong
and balanced.          market. However, India’s strengths in the areas of jewellery
                       are yet to be highlighted in the market, which is one of the
largest exporters of precious jewellery in the world. Since India already has made
inroads into this market with limited range of products, Indian exporters can also
concentrate on expanding their product range.

The following table provides information regarding Hong Kong’s imports from
the world and from India under this sector in the past few years.



Consulate General of India, Hong Kong                                                               27
                         EXPORTING PEARLS, GEMS AND JEWELLERY TO HONG KONG




          HONG KONG’S IMPORT OF PEARLS, GEMS AND JEWELLERY FROM THE WORLD AND INDIA
                                          (US$ Million)
     YEAR                           TOTAL IMPORTS                      IMPORTS FROM INDIA
                            VALUE                GROWTH            VALUE             GROWTH
      1999                         3,438              +39.0%             1,537              +38.8%
      2000                         4,389              +27.6%             1,905              +24.0%
      2001                         4,075                -7.2%            1,634               -14.2%
      2002                         4,875              +19.7%             1,825              +11.7%
(Source: Census and Statistical Department, HKSAR)


3.3 India’s Share and Future Scope

This section provides information about Hong Kong’s imports, various categories
of pearls, gems and jewellery products and India’s share under these categories.
All figures pertain to 2002 unless otherwise specified.

Pearls and Gems

Pearls, precious and semi-precious stones (SITC 667) category forms 77.3% of
Hong Kong’s total imports under pearls, gems and jewellery sector. While Hong
Kong imported products worth US$4,876 million (+19.7%) under pearls,
precious and semi-precious stones category, it exported US$2,964 million
(+26.3%), of which US$2,924 million (+27.3%) were re-exports.

India is the single largest exporter of pearls, precious and semi-precious stones to
Hong Kong. The value of India’s export reached US$1,825 million (+11.7%) in
2002 accounting for 37.4% of the market share. The growth pattern of Indian
exports to Hong Kong under this category matched the fluctuations experienced
by the Hong Kong market. The following table provides information regarding
India’s share in Hong Kong’s total imports along with the major exporters to this
market:
                INDIA’S POSITION IN HONG KONG’S IMPORT OF PEARLS AND GEMS (SITC: 667)
                                            (US$ Million)
   COUNTRY                                   2001                              2002
                          VALUE            SHARE      GROWTH       VALUE     SHARE       GROWTH
World                           4075            100         -7.2      4876        100        +19.7
India                           1634           40.1        -14.2      1825       37.4        +11.7
Israel                           556           13.6        -15.3       733         15        +31.9
Belgium                          484           11.9        +8.0        661       13.6        +36.7
USA                              433           10.6        -18.1       482        9.9        +11.1
UAE                              175            4.3      +131.5        288        5.9        +65.0
(Source: Census and Statistical Department, HKSAR)

Hence, India's export of pearls and gems contributes an overwhelming 98.4% of
India’s total export of pearls, gems and jewellery to Hong Kong, leaving less than
2% for India’s export of jewellery to Hong Kong.

Hong Kong market shows that the trading of natural pearls (SITC: 66711) is
declining. Hong Kong’s import of this item has declined from US$6,251 million
in 1999 to US$179 million in 2002. The growth rates was +15.2% in 1999,
+65.6% in 2000, -72.4% in 2001 and -93.7% in 2002. Even the growth of un-
worked cultured pearl (SITC: 66712) is also not adequately compensating the
decline, though it grew from US$74 million in 1999 to US$83 million in 2002.
India’s export of un-worked cultured pearls made a small beginning in 2000



28                                                          Consulate General of India, Hong Kong
EXPORTING PEARLS, GEMS AND JEWELLERY TO HONG KONG




(US$12,000) and grew to US$170,000 in 2001. It again declined and reached
US$82,000 in 2002.

India’s export of      India’s export of worked cultured pearls grew by +89.5% in
worked cultured        2002 and reached US$112,000, yet it enjoys only 0.1% of
pearls grew by         Hong Kong’s total market share under this item. India is
+89.5 in 2002          the fourth largest exporter of unsorted rough diamonds
                       (SITC: 66721) to Hong Kong, but the value is only
US$322,000 (growth +2.4%, share 2.4%). India’s export of non-industrial sorted
diamonds, un-worked (SITC: 66722) grew from US$13 million (share 3.5%) in
1999 to US$61 million (share 7.6%) in 2002. It is to be noted that UAE, a new
entrant under this sector just two years ago, has gained 29.4% of the market in
2002 with its exports reaching US$236 million.

India is the single largest exporter of non-industrial worked diamonds, not
mounted (SITC: 66729), to the Hong Kong’s market (US$1,738 million, +14.1%).
The second largest exporter holds 15% of the market, which India holds 48.4% of
the market.

India is the tenth most important exporter of precious and semi-precious stones,
un-worked (SITC: 66731). The value of Indian exports reached US$1,226 in 2002
(-4.8%, share 2.9%). India is the third largest exporter of precious and semi-
precious stones, worked (SITC: 66739) to the Hong Kong’s market and its
exports reached US$24 million in 2002 (+18.7%, share 15.9%).

India made a very      India made a very small beginning in 2002 in the export of
small beginning in     piezo-electric quartz stones (SITC: 66741) to Hong Kong
2002 in the export     by exporting US$3,000 worth of products. India’s export
of piezo-electric      of synthetic or reconstructed gemstones, un-worked (SITC:
quartz stones.         66742) faced a decline in 2002 (US$32,000, -88.5%, share
                       0.5%), like the exports of other synthetic or reconstructed
gemstones (SITC: 66749), with an export value of US$86,000 (-47%, share 0.4%).
The following table provides information regarding India’s exports under the
category of pearls and gems (SITC: 667) to Hong Kong in 2002:
                       INDIA’S EXPORT OF PEARLS AND GEMS TO HONG KONG 2002
                                            (US$ thousand)
         SITC                          DESCRIPTION               VALUE         GROWTH
         66711 Natural pearls                                              -               -
         66712 Cultured pearls, un-worked                                 80          -52.3
         66713 Cultured pearls, worked                                   100         +89.5
         66721 Diamonds, rough and unsorted                              300           +2.4
         66722 Non-industrial diamonds, un-worked, sorted             61000           -30.6
         66729 Non-industrial diamonds, worked, not mounted         1738000          +14.1
         66731 Precious and semi-precious stones, un-worked            1000             -4.8
         66739 Precious and semi - precious stones                    24000          +18.7
         66741 Piezo-electric quartz Stones                                3        Infinity
         66742 Synthetic or reconstructed gemstones, un-worked            30          -88.5
         66749 Synthetic or reconstructed gemstones, NES                  90          -47.0
         Total                        (US$1825 million)            1,824,603        +11.7%
(Source: Census and Statistical Department, HKSAR)




Consulate General of India, Hong Kong                                                   29
                        EXPORTING PEARLS, GEMS AND JEWELLERY TO HONG KONG




Conflict Diamonds and India

As explained under Part 2: Hong Kong’s Import Scope, ‘Conflict Diamonds’ are one of
the serious concerns of global diamond trade. India and Hong Kong are both
signatories under this scheme and have resolved to monitor their diamond trade
to avoid assisting conflict diamond traders.

Indian export of       Indian export of diamonds is largely concentrated in
diamonds is            polished diamonds and hence to that extent Indian export
largely                of diamonds to Hong Kong is insulated from the teething
concentrated in        trouble of inspection regime. Restriction of conflict
polished diamonds      diamonds may at the most influence the price of rough
and hence it is        diamonds in the market and this may have an indirect
insulated from the     impact on our polished diamond prices in the world market
new development.       as India imports 1/3 of the global roughs that go into
                       making polished diamonds. Alternatively, India can look to
buying more roughs from other sources. Hence, one can safely conclude that
prohibition of ‘Conflict Diamonds’ is unlikely to disrupt Indian diamond trade, at
least in the immediate future.
Jewellery

India exported products worth US$29 million under the jewellery category (SITC
897). Though Indian exports grew by +14.3%, India enjoys only 2%of the Hong
Kong’s market share. However, it is to be noted that Indian exports under this
category have registered a positive growth after a prolonged decline. In 1999, the
value of Indian exports was US$27 million (-46.7%), followed by US$25.6 million
in 2000 (-4.5%) and US$25.5 million (-0.5%) in 2001. The following table
provides an overview of Hong Kong’s imports under jewellery category giving a
perspective of India’s position in this regard.
                   INDIA’S POSITION IN HONG KONG’S IMPORT OF JEWELLERY (SITC: 897)
                                             (US$ Million)
                    COUNTRY                         2001                        2002
                                           Value Share     Growth     Value   Share     Growth
                                World      1,236 100.0%       -1.9%   1,435   100.0%    +16.1%
                                 China       459    37.2     +3.0%      522    36.4%    +13.5%
                                  Italy      206    16.7      -0.3%     243      17.0   +18.1%
                                  USA        177    14,4     +5,6%      218      15.2   +22.9%
                          Switzerland        107     8.7    -37.2%      138       9.6   +29.4%
                                 Japan        39     3.2    -21.3%       49       3.4   +25.8%
                                France        30     2.5   +115.2%       49       3.4   +60.9%
                                 India        25     2.1     -0.5%       29       2.0   +14.3%
                   United Kingdom             19     1.5    -20.9%       26       1.8   +39.2%
                              Thailand        15     1.3      -5.4%      21       1.5   +37.5%
                             Singapore        28     2.2     +5.2%       21       1.4    -26.1%
(Source: Census and Statistics Department, HKSAR)

China is the                    China is the leading exporter of jewellery to the Hong
leading exporter of             Kong market in five out of seven items under this category.
jewellery to the                India’s export of imitation jewellery (SITC: 89729) saw a
Hong Kong market                sudden reversal in 2000 (the year of peak of India’s total
in five out of seven            export of gems and jewellery around the world), but has
items.                          tapered back to 1999 level in 2002. This trend is repeated
                                for goldsmiths’ and silversmiths’ wares, of precious metal



30                                                            Consulate General of India, Hong Kong
EXPORTING PEARLS, GEMS AND JEWELLERY TO HONG KONG




(SITC: 89732). However, articles of jewellery, of precious metals (SITC: 89731)
showed positive growth after a plateau value of US$25 million during 1999 to
2001, to reach US$29 million, marking a growth of +15.8% in 2002. The
following table provides information regarding India’s export items under the
Jewellery category (SITC: 897)
                                          INDIA’S EXPORT OF JEWELLERY
                                                   (US$ thousand)
          SITC                               DESCRIPTION                    VALUE       GROWTH
         89721       Imitation jewellery of base metal                             40        -29.0
         89729       Imitation jewellery of other non-precious materials           40        -39.3
         89731       Articles of jewellery, of precious metal                   29000       +15.8
         89732       Goldsmiths’ and silversmiths’ wares, precious metal           20        -31.4
         89733       Articles of pearls, precious or semi-precious stones          70        -77.5
         89741       Platinum wire or grill catalysts                               -            -
         89749       Other articles of precious metal                               -            -
         Total                                                                  29170       +14.3
(Source: Census and Statistics Department, HKSAR)

Hence, India could concentrate makings its export basket more diversified and
balanced. While reinforcing its strengths under the diamond export trade, India
could also focus on promoting its capabilities in the jewellery sector. Indian
exporters can make use of the Indian community in Hong Kong, of which many
are directly involved in the gems and jewellery trade.




Consulate General of India, Hong Kong                                                         31
                                                                4
                                                                   Part




4. Entering the Market
Exhibitions
Services by the Consulate




T       his chapter provides information about the ways to enter the Hong Kong
        pearls, gems and jewellery market and methods of enhancing existing
        business links in this regard. This will help the Indian pearls, gems and
jewellery organisations and companies pursuing business links with the Hong
Kong market.

4.1 Exhibitions

Trade Fairs in Hong Kong
Introduction

China is topping        Indian pearls, gems and jewellery exporters can make a
the list of             good beginning to enter the Hong Kong market by
countries sending       participating in pearls, gems and jewellery related Hong
maximum number          Kong exhibitions. It is to be noted that more than 3,000
of buyers to some       economy-related conferences and events are organised in
of the Hong Kong        Hong Kong. Hong Kong international exhibitions have
exhibitions.            created a niche as showcases of Asian products to the
                        world. These exhibitions not only cater to the local
Hong Kong traders but also to major buyers from all over the world,
including North America, Europe, other Asian countries like Japan, Korea,
etc. Hong Kong gems and jewellery exhibitions can also provide an
opening to enter Mainland China market, as scores of Mainland China
traders and manufacturers visit Hong Kong exhibitions. For example, 21%
of the total overseas visitors to Hong Kong International Jewellery Manufacturers
Exhibition in 2002 were from Mainland China, overtaking the USA as the largest
visiting country. The organisers of the exhibitions in Hong Kong normally
welcome buying missions from various markets by providing hospitality. For
instance, 30 buying missions, including missions from Australia, Dubai, the USA,
Spain and Mexico, visited the Hong Kong Jewellery Show in 2002.

Exhibition Services by the Consulate

Indian pearls, gems and jewellery exporters desiring to participate in these
exhibitions can contact the Consulate General of India for updated information
about these fairs, including relevance of these exhibitions to their products, track
record of the exhibitions regarding visitor profile and turnout, calendar, contact



Consulate General of India, Hong Kong                                             33
                EXPORTING PEARLS, GEMS AND JEWELLERY TO HONG KONG




details of the organisers, etc. A list of important Hong Kong importers of that
particular product can also be provided to facilitate pre-exhibition promotion and
meeting arrangements.

The Consulate         For an Indian organisation organising an India pavilion,
assists in            support is given in terms of identifying stall construction
organising India      contractors, stall designs, execution and facilities for Indian
pavilion              exhibitors, arranging interpreters, booth assistants, etc.

Reaching Hong Kong Convention and Exhibition Centre

Most of the Hong Kong international exhibitions are held at the Hong Kong
Convention and Exhibition Centre (HKCEC). It is located in Wanchai,
overlooking the Victoria Harbour. It is connected by covered walkways to
adjacent Grand Hyatt Hong Kong and Renaissance Harbour View Hotel. It is at
a walkable distance from Wanchai MTR station with an exit marked for HKCEC
and is also linked by bus and ferry.

Basic information about select list of fairs in Hong Kong, which can be targeted
to promote Indian pearls, gems and jewellery are given below:

Hong Kong International Jewellery Show

Organiser:

      Hong Kong Trade Development Council
      Unit 13, Expo Galleria, Hong Kong Convention & Exhibition Centre,
      1 Expo Drive, Wanchai, Hong Kong
      Phone: +852.2240.4145
      Fax: +852.2824.0026
      Email: exhibitions@tdc.org.hk
      Web: http://hkjewellery.com
One of the largest jewellery shows in the region, this annual event deals with all
kinds of fine jewellery, diamonds, pearls, gems watches and clocks and related
jewellery products and services. During its 2003 edition, it attracted 1,186
exhibitors from 30 countries and regions, including 443 overseas exhibitions.
India organised Indian pavilion, along with other countries, including Belgium,
China, Israel, Italy, Japan, Korea, etc. This show also attracted 20,145 visitors.
While the number of visitors from Hong Kong increased by 13.2%, the number
of overseas visitors increased by 26.5% to reach 9,639, including 1,368 visitors
from Europe, followed by 1,402 from North America.
Hong Kong Jewellery and Watch Fair

Organiser:

      CMP Asia Ltd
      17/F., China Resources Building, 26 Harbour Road, Wanchai,
      Hong Kong
      Phone: +852.2827.6211
      Fax: +852.2827.7831



34                                          Consulate General of India, Hong Kong
EXPORTING PEARLS, GEMS AND JEWELLERY TO HONG KONG




      Web: http://www.cmpasia.com
      Email: info@cmpasia.com
This bi-annual event, held in June and September every year, is one of the largest
jewellery fairs in the world and is claimed to be the biggest jewellery fair in Asia,
biggest pearl fair in the world and the second biggest diamond and gemstone fair
in the world. This fair features fine jewellery, gemstones, pearls, diamonds,
jewellery watches, etc.

The June 2002 edition of the fair attracted 599 exhibitors from 27 countries and
regions, including 12 Indian companies. It also attracted 14,324 visitors from 92
countries and regions. Among the exhibitors, 47% offered on fine finished
jewellery as their main product, followed by pearls (24%), gemstones (23%) and
diamonds (10%). Study of the visitors’ profile shows that 42% of the visitors
were jewellery and watch wholesalers and retailers, while 22% were diamond and
gemstone traders, followed by jewellery and watch manufacturers (19%), pearl
traders and suppliers (13%) and institutes, government bodies and others (4%).

Hong Kong being one of the major centres of global pearl distribution in Asia,
this fair attracts some of the world-renowned pearl auctions to be held in
association with the fair.

September 2002         The September 2002 edition attracted 1,700 exhibitors
edition attracted      from 45 countries and regions and 30,000 visitors from 100
1,700 exhibitors       countries and regions. Among the visitors, 44% were
and 30,000             jewellery and watch wholesalers and retailers followed by
visitors.              diamonds and gemstones (23%), jewellery and watch
                       manufacturers (13%), pearls traders and suppliers (10%)
and others (2%).

Many countries and regions organised special pavilions including Belgium, Brazil,
France, Germany, Israel, Italy, Japan and Korea, etc.

The organisers of this fair also bring out a widely circulated magazine called
Jewellery News Asia. For further information, please contact the circulation
department at CMP Asia Ltd address, given above.
Asia’s Fashion and Jewellery Accessories Fair

Organiser:

      CMP Asia Ltd
      17/F., China Resources Building, 26 Harbour Road, Wanchai,
      Hong Kong
      Phone: +852.2827.6211
      Fax: +852.2827.7831
      Email: info@cmpasia.com
      Web: http://www.cmpasia.com
The Asia’s Fashion Jewellery and Accessories Fair features fashion jewellery
(precious metal-plated jewellery, silver jewellery, crystals, beads, semi-precious



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                 EXPORTING PEARLS, GEMS AND JEWELLERY TO HONG KONG




gemstones, etc.), fashion jewellery materials (loose polished semi-precious stones,
beads, minerals, jewellery parts, etc.) and fashion accessories. This bi-annual event
is held concurrently with the June and September editions of Hong Kong
Jewellery and Watch Fair.

A new exhibition       The June edition of Asia’s Fashion Jewellery and
will start from        Accessories Fair was started in 1998. Its 2002 edition
September 2003.        attracted 330 exhibitors and 13,000 visitors. Of the visitors,
                       30% were importers/exporters, followed by wholesalers
(23%), retailers (23%), manufacturers (18%) and departments/chain stores and
others (6%). Many buyers (43%) showed interest in fashion accessories followed
by fashion jewellery (41%) and fashion jewellery materials (16%).

The September edition of Asia’s Fashion and Jewellery Accessories Fair is a new
addition and will be held from September 2003 onwards.

Hong Kong International Jewellery Manufacturers Exhibition

Organiser:

      Hong Kong Jewellery Manufacturers’ Association &
      Hong Kong Jewellery Express Magazine
      Unit G, 2/F, Kaiser Estate Phase 2, 51 Man Yue Street
      Hunghom, Kowloon, Hong Kong
      Phone: +852.2766.3002
      Fax: +852.2362.3647
      Email: hkjma@jewelry.org.hk
      Web: http://www.jewelry.org.hk
This annual event’s 10th edition was held in November 2002. It attracted 184
exhibitors and 8,137 visitors from 55 countries and regions. 21% of the total
overseas visitors to Hong Kong International Jewellery Manufacturers Exhibition
in 2002 were from Mainland China, overtaking the USA as the largest visiting
country.

The exhibition features products including pearls, gems precious metal and
fashion jewellery. It offers special focus items like World Chains Expo, Jadeite
Centre, Pearl Square, etc.

Market Access Initiative

Indian pearls, gems and jewellery export organisations can provide impetus to the
focus on Hong Kong pearls, gems and jewellery market by planning Market
Access Initiative’s (MAI) for Indian exporting companies. To participate in
pearls, gems and jewellery trade fairs in Hong Kong, MAI can be structured so
that over a period of three years, the exporters get the support to participate in
Hong Kong trade fairs by way of getting, say 75%, 50%, 25% of the cost of
participation from the organisation. After the third year, the individual company
will be able to participate on its own having realised the potential of the market
and the trade volume. Focus can be on the regions in India, which need




36                                           Consulate General of India, Hong Kong
EXPORTING PEARLS, GEMS AND JEWELLERY TO HONG KONG




additional thrust to promote local products and capabilities through International
exhibitions.

Even though the number of Indian companies participating in the exhibition can
improve on its own by the potential of the market, if all the Indian pearls, gems
and jewellery exporting companies can come under a National Pavilion organised
by the pearls, gems and jewellery exporting organisations of India, this will provide
a greater business impact. All these stalls would be decorated with an Indian
theme and this would project the size of Indian participation in the exhibition and
India’s interest in the Hong Kong pearls, gems and jewellery market.

Trade Fairs in India

India organises a number of important international conferences and trade fairs in
the pearls, gems and jewellery sector. These exhibitions are drawing substantial
number of pearls, gems and jewellery importers from other countries. These can
provide a good opening for an Indian exporter. The basic details of some of
these fairs are given below.

India International Jewellery Show

Organiser:

      The Gem and Jewellery Export Promotion Council
      Diamond Plaza, 5th Floor,
      391-A Dr. Dadasaheb Bhadkamkar Marg,
      Mumbai - 400 004.
      Phone: +91.22.2382.1801 / 1806 / 2380.6916
      Fax: +91.22.2380.8752 / 2380.4958
      Email: gjepc@vsnl.com
      Exhibition Cell: gjepc@bol.net.in
      Web: http://www.gjepc.org
India International Jewellery Show (IIJS) is an annual Fair featuring jewellery
products of India, organised by the Gem and Jewellery Export Promotion
Council (GJEPC). This show is normally held in Mumbai. Started in 1985, this
show attracts more than 15,000 visitors (traders, retailers, jewellery manufacturers
and equipment manufacturers). International exhibitors from countries like Italy,
Australia, Hong Kong, Thailand and others also participate.

Ratnaankita '03

Organiser:

      Trans Asian Chamber
      13, Amar kunj, Sawarkar Marg,
      Mumbai, Maharashtra 400 028
      Phone: +91.22.2446.7647 / 2447.3829
      Fax: +91.22.2447.3829
      Email: ratnaankita@rediffmail.com, tacci@rediffmail.com,




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                  EXPORTING PEARLS, GEMS AND JEWELLERY TO HONG KONG




The Trans Asian Chamber of Commerce & Industry (TACCI) is organising an
international Gems & Jewellery show, which showcases the industry, not only
product wise but also its technical aspects. Starting in October \ Nove,ber 2003 ,
the event includes exhibition, seminar, beauty pageant and fashion show, to focus
on the emergence, growth, future look and changes metamorphosing
internationally in the world of gems and jewellery.
Jewels of India

Organiser:

      Expoworld
      No. 2. First Floor, 2nd Main Road,
      Vasanthnagar, Bangalore, Karnataka
      Phone: +91.080.2228.4164
      Fax: +91.080.2220.2401
Jewels of India, co sponsored by the World Gold Council and endorsed by the
India Trade Promotion Organisation, is an annual event that attracts about 100
exhibitors and about 50,000 visitors.

Apart from the above-mentioned trade fairs, many exhibitions and fairs are
organised in India, including ‘Jewels of India’, ‘Times Glamour’, ‘Bridal Asia’ etc.
For further information, please visit:

      http://www.indiatradepromotion.org
      http://www.trade-india.com/dyn/gdh/fairs/tradefairs/

4.2 Services by the Consulate

Business Delegations

Indian pearls, gems and jewellery export organisations can organise business
delegation to Hong Kong. These delegations can be composed of select
exporters whose products have more relevance to the Hong Kong market.
Complete information about the members of the delegation along with their trade
interest may be made available to the Consulate General of India, Hong Kong.
The Consulate would arrange business interactions with industry associations,
importers, buying offices, etc., in Hong Kong. The Consulate can also arrange
general business meetings with pearls, gems and jewellery traders who are
members of other chambers of commerce in Hong Kong.

Delegations can interact with government bureaux and agencies to learn about the
standards, rules and regulations to be followed when Indian pearls, gems and
jewellery products are exported to Hong Kong. Technical details in the two
standard regimes between India and Hong Kong can be discussed and options for
creating common standards can be explored.

Product Studies

Indian pearls, gems and jewellery exporting organisations and major companies
can initiate a deeper study for individual products like branded items, fashion


38                                          Consulate General of India, Hong Kong
EXPORTING PEARLS, GEMS AND JEWELLERY TO HONG KONG




jewellery, etc. These studies can be made comprehensive by getting detailed
information about the pearls, gems and jewellery market for the particular product
from various sources in Hong Kong including Government bureaux and
agencies, industry associations, importers, buying offices, etc. Indian companies
wanting to explore the market can also approach the Consulate for essential
information like trade figures, updated information on rules and regulations, etc.

Trade and Investment Queries

The Consulate          Indian organisations and companies interested in entering
encourages trade       the Hong Kong pearls, gems and jewellery market can
queries through        make use of the Consulate’s trade matching services. The
email                  Consulate can provide a list of matching business contacts
                       in the Hong Kong pearls, gems and jewellery sector,
including telephone, fax and email details. In case of organisations, this can be
circulated among the members of the organisations. Information about Indian
business organisations and companies wanting to find partners in Hong Kong are
also circulated to important business organisations in Hong Kong.

The Consulate encourages trade queries through email. All queries can be sent to
commerce1@indianconsulate.org.hk

Newsletters
Business Opportunities in Hong Kong

Indian pearls, gems and jewellery export organisations and companies can
subscribe to the free e-newsletter published by the Consulate General of India,
Hong Kong called “Business Opportunities in Hong Kong”. This newsletter
contains business information including economic developments in Hong Kong,
trade queries, tender notices, briefs about important commercial associations,
forthcoming business conferences and trade fairs, etc. In case of organisations,
this valuable business information can be disseminated to the members of the
organisations either by emailing the same to their members, or by publishing the
details on the organisation’s website. Organisations and companies can subscribe
by sending an email to commerce2@indianconsulate.org.hk or can visit the
Consulate’s website to subscribe online (http://www.indianconsulate.org.hk)

Business Opportunities in India

Indian pearls, gems and jewellery organisations and companies can utilise
“Business Opportunities in India”, another free e-newsletter published to
project the capabilities of the associations in catering to the needs of an importer
from Hong Kong pearls, gems and jewellery market. In case of organisations, the
role and functions of the organisation with full contact details can be provided.
This information would be circulated to important business organisations, apart
from individual business people of Hong Kong. This newsletter can also be
utilised to advertise various pearls, gems and jewellery fairs and business events
organised in India for export of pearls, gems and jewellery. Indian pearls, gems
and jewellery export organisations can write to the Consulate General of India,
Hong Kong with full details about the event, which can be highlighted in the
newsletter. Indian organisations and companies wishing to provide information


Consulate General of India, Hong Kong                                            39
                  EXPORTING PEARLS, GEMS AND JEWELLERY TO HONG KONG




about the organisation and company can send an email with the details to
commerce1@indianconsulate.org.hk

Business Centre

The Consulate offers many services through its business centre including meeting
venue, conference venue, computer, telephone and fax facilities, identifying and
hiring of local assistance, interpreters, translators, etc. The details of the tariff for
meeting and conference facilities are given below:
                     MEETING ROOM (SEATING CAPACITY 5-8 SEATS)
             Hourly Rate                                       HK$75
                  CONFERENCE ROOM (SEATING CAPACITY 12-20 SEATS)
             Half a day: 0900-1300 hrs or 1300 – 1700 hrs     HK$500
             Hourly Rate                                      HK$150

Website

Online Trade            The Consulate’s website provides relevant and updated
Queries is an           business information, including on India-Hong Kong trade
interactive             and investment, reports on Hong Kong economy,
database providing      information on doing business in Hong Kong, opening an
information on          office in Hong Kong, etc. Contact details of Indian
business contacts       business organisations in Hong Kong are also given. The
in Hong Kong and        website features Online Trade Queries, an interactive
India                   database providing information on business contacts in
                        Hong Kong and India. Business visitors can search
business contacts based on name of the product, company, SITC code, importing
or exporting, etc. Visitors can also register online so that their information is
added to the database. Direct access links for membership database of important
commercial organisations in Hong Kong are also provided. Online subscription
forms, latest issues and archives, of the Consulate’s e-Newsletters are also
available. A useful list of important web links to Hong Kong is provided along
with links to real time flight information at Hong Kong airport.

For further information, please visit: http://www.indianconsulate.org.hk

Trade Disputes and Miscellaneous Services

Though the role of the Consulate in resolving trade disputes is limited, the
Consulate liaises with the disputing parties to seek solution. In case the Indian
company wants to pursue arbitration and legal courses, the Consulate can provide
contact particulars of relevant organisations in Hong Kong.

The Consulate also provides other services like attestation of trade documents,
consular services, etc.




40                                             Consulate General of India, Hong Kong
                                                               5
                                                                  Part




5. Opportunities in China
Market and Industry
Policies
Industrial Bases
India’s Exports to China
Services offered by the Embassy


5.1 Market and Industry

Market Overview




C        hina spurred by its growing consumption, tariff cuts and liberalisation of
         the market is said to become the world’s leading jewellery consumer and
         processor by year 2010. Spending on jewellery alone in the country is
rising at an average rate of 10% annually. In 2001, Chinese domestic market for
jewellery was about US$9.65 billion, while jewellery exports reached US$2.5
billion. In 2002, the total sales of gems and jewellery in China reached US$10
billion, of which diamond sales reached US$1.1 billion. It is estimated that in
2003, diamond sales in China will reach US$1.3 billion. Gold consumption
reached 207.5 tons, making China the fourth largest country in gold jewellery
consumption. Annual sales of pearl and precious stones amount to US$24 billion.
With an average growth of over 6%, China’s jewellery market is predicted reach
US$22 billion by 2010, accounting for 10% of the world market. In platinum
consumption, China has overtaken Japan as the market leader. 52% of platinum
jewellery in the world is made in China. In the first ten months of 2002, China
imported Platinum worth US$68 million. Shanghai has more than 100 exclusive
platinum retail stores selling platinum pieces and platinum jewellery.

Chinese domestic      In diamonds, China occupies 1.8% of the world’s diamond
market for            market share. Shanghai accounts for one-fifth of China's
jewellery was         total diamond consumption. In the first 11 months of
about US$10           2002 China imported diamonds and related products worth
billion in 2002.      US$38.3 million through the Shanghai Diamond Exchange
                      Centre (SDEC), the only legal trading channel in China.
The SDEC imported US$37.4 million in diamonds for ornament making,
including finished diamonds making up 97.7% of the company’s total diamond
imports. The other US$900,000 worth of diamond imports were for industrial
use. The figure highlights the rapid growth in legal diamond imports since the
central government exempted the centre from tariffs on diamond products last
July. However, the import volume lags far behind consumer demand for


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                 EXPORTING PEARLS, GEMS AND JEWELLERY TO HONG KONG




diamond products in China. Diamond smuggling is still a widespread problem.
The large percentage of imported diamonds used for ornament making indicates
China’s demand for diamonds remains brisk. SDEC also exported USD 1.05
million worth of diamonds, accounting for 31% of China’s total diamond exports.
Currently, the Shanghai Diamond Exchange Centre has 94 members, 63 of which
are foreign/overseas funded by foreigners or from overseas. Shanghai's is moving
towards becoming one of the world's top diamond jewellery markets, registering a
40% annual growth in the last four years.

Policies

The Chinese government tightly controls imports of gems and jewellery. The
tariff rate of over 8% is one of the highest in the world. 17% VAT is also added.
It is to be noted that there is 0% tariff for uncut diamonds. Further, China's
General Administration of Customs (GAC) recently promulgated two policy
documents concerning the diamond trade. These two documents are Provisions
of the GAC on the Supervision of Diamond Entry and Exit at the Shanghai
Diamond Exchange and Notice of the GAC on the Implementation of Policies
Concerning Diamond and Diamond Jewellery Imports. The two new documents
make it clear that the Shanghai Diamond Exchange (SDE) is a special zone
established with the approval of the State Council for the handling of diamond
import and export formalities and for customs control in the diamond trade.
GAC maintains an office within SDE to carry out closed management.

The Provisions cover measures for the management of SDE and its members, the
supervision of the movement of diamonds between SDE and offshore enterprises
and between SDE and domestic enterprises, as well as the management of
diamond processing. The Notice stipulates that with effect from 1 June 2002,
diamond imports and exports under China's general trade and the domestic sales
of diamond under the processing trade are required to complete import and
export customs declaration formalities at the SDE customs; other customs offices
may not handle these two categories of diamond imports and exports. The SDE
customs will levy import-related VAT on the domestic sale of diamonds
mentioned above (including diamonds in finished products). Diamonds imported
into China (except Hong Kong, Macau and Taiwan) through SDE will be exempt
from import tariffs. Currently, the Shanghai Diamond Exchange Centre has 94
members, 63 of which are funded by foreigners or from overseas.
Tariff on Diamonds

In addition to the 17% value-added tax and the 10% consumption tax, the current
tariffs for rough diamonds and polished diamonds are 3% and 9% respectively.
The high taxation has not only affected the development of the country's
diamond processing industry but also has resulted in rampant trafficking.

The new rules stipulate the following:

     • The consumption tax formerly collected at the import and processing
       stage will be postponed until the retail stage.




42                                         Consulate General of India, Hong Kong
EXPORTING PEARLS, GEMS AND JEWELLERY TO HONG KONG




   • The consumption tax for unset polished diamonds and diamond
     jewellery will be collected at a reduced rate of 5%.
   • Rough diamonds and unset polished diamonds directly entering the
     SDEC from overseas will be exempted from value-added taxes and
     consumption taxes.
   • Diamonds traded in the SDE will be exempt from value-added taxes.
     Full tax refunds will be given based on the difference between the
     former refund rate of 13% and the tax collected at the processing stage,
     when the diamonds are exported.
   • Diamond flowing from the SDE to overseas will not enjoy tax refunds.
   • On diamonds imported from the SDE for use in domestic markets,
     value-added tax shall be duly paid.
   • For customs supervision, if diamonds imported in the name of
     processing trade are to be sold domestically, the diamonds must be sent
     to the SDE for transactions or filing.
Industrial Bases

While Shanghai one of the world's fastest-growing diamond markets, Shenzhen in
South China is the base for jewellery processing. Shenzhen is a big market in its
own right, but more importantly, it has now become a gold jewellery-processing
base. According to a representative of the Shatoujiao Bonded Area, Shenzhen's
gold processing volume makes up 70% of the national total and accounts for 10%
of the city's industrial output value. The Shatoujiao Bonded Area alone
contributes to half of Shenzhen's gold jewellery output. In fact, gold and jewellery
processing has become one of the three pillar industries in the bonded area. The
other two industries are computers and electronic toys. Shenzhen and its
surrounding area has 800 jewellery manufacturers and supplies between 70% and
80% of jewellery offered for sale in the domestic market in China. The Shenzhen
Special Economic Zone is now the largest jewellery manufacturing and wholesale
centre supplying the domestic market in China, the gem-set gold jewellery
manufacturing centre for the domestic market, the centre for platinum jewellery
production and the gemstone-polishing centre.

The following table provides information regarding China’s imports of gems and
jewellery in 2001 and 2002:
                     CHINA’S IMPORT OF PRECIOUS STONES AND PRECIOUS METAL
                                           (US$ million)
                                    JANUARY - OCTOBER
                                        US$ MILLION             % SHARE             % CHANGE
 HS           DESCRIPTION            2001         2002       2001      2002         2002/2001
        WORLD                        200332.2     237835.7      100       100             18.72
        71 Precious stones,
        metals                       773.8862     1103.656     0.39          0.46         42.61

 7102   Diamonds                     527.3085    823.7755     68.14         74.64         56.22
 7110   Platinum                     48.87124    67.80669      6.32          6.14         38.75
 7106   Silver                       41.44617    51.90252      5.36           4.7         25.23
 7103   Other stones, Not strung     31.32184    40.68963      4.05          3.69         29.91
        Jewellery with precious
 7113   metals                        41.2281     38.3602      5.33          3.48         -6.96
 7104   Synthetic, not strung        25.46861    28.36442      3.29          2.57         11.37
 7117   Imitation jewellery           20.3395    21.15445      2.63          1.92          4.01




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                        EXPORTING PEARLS, GEMS AND JEWELLERY TO HONG KONG




          Other articles with precious
 7115     metals                             23.14424   16.35662    2.99         1.48    -29.33
 7101     Pearls                             8.393001    7.75629    1.08          0.7     -7.59
 7116     Articles with pearl, stone         1.802039   2.581762    0.23         0.23     43.27
 7107     Base metals with silver            1.914249   1.853526    0.25         0.17     -3.17
 7105     Dust and powder                    1.422215   1.408871    0.18         0.13     -0.94
 7118     Coin                               0.379336   0.772084    0.05         0.07    103.54
 7111     Base metals with Plat              0.149113   0.590392    0.02         0.05    295.94
 7114     Gold, silversmith articles         0.664722   0.263359    0.09         0.02    -60.38
          Waste + scrap, precious
 7112     metals                             0.033415   0.019317        0          0     -42.19

China and the WTO

The cut in import tariffs for gold jewellery and diamonds upon China's entry into
the World Trade Organisation (WTO) is good news to the foreign players.
According to China's WTO deal, the jewellery industry is among the first batch of
industries opening up to foreigners, said Kang Xingzhou, vice-president of China
National Arts & Crafts Corporation.
        DESCRIPTION OF GOODS                   IMPORT DUTY RATE    VAT (%)   CT (%)     UNIT
                                               MFN          BA*
Natural or cultured pearls                  21          21         17        10          Grams
Un-worked Diamonds                          3           3          17        10           Carat
Worked but un-mounted diamonds              8           7          17        10          Grams
Un-worked precious stones (other than       3           2.8        17        10          Grams
diamonds) and semi-precious stones
Un-mounted natural or synthetic or          8           7          17        10           Carat
reconstructed precious stones (other
than diamonds) and semi-precious
stones
Un-mounted precious or semi-precious        8           7          17        10           Carat
stones
Silver jewellery and silver articles of     26.7        22         17        0           Grams
jewellery inlayed with stones or pearls
Gold jewellery and gold articles of         26.7        22         17        0           Grams
jewellery inlayed with stones or pearls
Other precious metal jewellery and its      35          30         17        0           Grams
articles of jewellery inlayed with stones
or pearls
Imitation jewellery                         26.5 - 35   26.5-35    17        0           Grams

* BA: Bangkok Agreement: According to the “Bangkok Agreement”, India,
Korea, Sri Lanka, Bangladesh and Laos enjoy the BA Import Duty Rate. Other
countries that have diplomatic relationship with China enjoy the MFN Import
Duty Rate.

Important Exhibitions

The Embassy of India, Beijing prepares a product-specific exhibition list based on
India's top exports of the previous year at the beginning of every year for
circulation among various ministries, departments, export and import councils,
chambers of commerce and business enterprises. Interested parties could contact
the Mission for assistance in getting further information, booking of stalls and
other logistics, etc.

A list of important exhibitions in China in the area of pearls, gems and jewellery
are given below. For many events, the venue of these exhibitions are changed
annually. The Embassy publishes a fresh list at the beginning of the new year for
the convenience of the Indian participants. It should also be noted that most of
the exhibitions and fairs in China are organised or co-ordinated by the China



44                                                      Consulate General of India, Hong Kong
EXPORTING PEARLS, GEMS AND JEWELLERY TO HONG KONG




Council for Promotion of International Trade (CCPIT). Interested parties could
contact them directly for further information:

      China Council for Promotion of International Trade
      No.1 Fuxingmenwai Street
      Beijing-100860, P.R. China
      Phone: +86.10.6801.3344 (Operator), +86.10.6803.4830
      Fax: +86.10.6803.0747, 6801.1370
Exhibitions
China International Gold, Jewellery and Gem Fair, Shenzhen

Organiser:

      CMP Asia Ltd
      17/F., China Resources Building, 26 Harbour Road, Wanchai,
      Hong Kong
      Phone: +852.2827.6211
      Fax: +852.2827.7831
      Email: info@cmpasia.com
      Web: http://www.cmpasia.com
Luxury China, Shanghai

Organiser:

      Munich Trade Fairs Consultancy (Shanghai) Co., Ltd.
      Phone: +86.21.6886.3366 ext. 804
      Fax: +86.21.6886.2267
      Email: zhang_haiyan@mi-shanghai.com
China International Jewellery Fair, Beijing

Organiser:

      Gemmological Association of China
      Room No: 602, A5 West Yuetan Street,
      Xicheng dist., Beijing: 100045
      Phone: +86.10.6804.0679
      Fax: +86.10.6804.5040
      Email zhanlanbu@263.net
Shanghai Gem, Jade & Jewellery Exhibition

Organiser:

      Shanghai International Exhibition Co., Ltd.
      Phone: +86.21.6378.2828
      Fax:: +86.21.6545.5124
      Email:siec6@sh163.net




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                   EXPORTING PEARLS, GEMS AND JEWELLERY TO HONG KONG




5.2 India’s Exports to China

Given the increasing purchasing power of China’s consumers, precious and semi-
precious stones including jewellery, is an area that has recently seen large growth.
China also has a large requirement of industrial diamonds. Some Indian
companies have already set up joint ventures in this field. With increased
prosperity, a new consumer class is arising in China with a demand for products
like diamonds, semi-precious stones, gems and jewellery. Chinese women form
the largest consumer in China, however being westernised in their tastes, the
Indian exports should cater to their needs. It is reported that consumers in
Chinese are increasingly purchasing diamonds and other precious stones more as
an effective hedge against inflation. The following table provides information
regarding India’s exports to China in 2002
                                   INDIA’S EXPORTS TO CHINA – 2002

     HS         DESCRIPTION                  US$ MILLION                % SHARE        % CHANGE
                                           2001        2002          2001     2002     2002/2001
          India                               1700         2274        0.70     0.77         33.79
71        Precious stones & metals          83.442      101.297        4.91     4.45         21.40

7102      Diamonds                           82.405      99.887       98.76    98.61         21.21
710239    Non-industrial, worked             81.503      97.267       98.90    97.38         19.34
710210    Unsorted                            0.707       2.620        0.86     2.62        270.69

7103      Other stones, not strung            1.032       1.053        1.24     1.04          2.05
710391    Ruby, sapphire, emerald             0.992       0.775       96.14    73.59        -21.88
710399    Semi-precious/worked                0.038       0.228        3.69    21.68        500.31
710310    Un-worked                           0.002       0.050        0.17     4.72       2673.84


5.3 Services Offered by the Embassy

Embassy of India, Beijing can provide valuable services to the Indian gems and
jewellery organisations and companies pursuing economic links with Mainland
China, including business match-making for trade and investment queries,
providing information about relevant exhibitions, arranging meetings for the
visiting business delegations, providing resources and inputs for product studies,
etc. The Embassy operates a business centre and provides important information
through its website http://www.indianembassy.org.cn. For further information,
please contact:
EMBASSY OF INDIA
Commercial Wing
1, Ritan Dong Lu, Beijing – 100 600
Phone: +86.10.6532.3291
Fax: +86.10.6532.4684
Email: ssc@indianembassy.org.cn
Web: http://www.indianembassy.org.cn




46                                                    Consulate General of India, Hong Kong
                                                                 6
                                                                    Part




6. India’s Potential
Industry Overview
Major Products
Policy Measures
Organisations and Institutions

6.1 Industry Overview



S     ince time immemorial, India has been synonymous with gems and jewellery.
      Today, India is the largest manufacturer and exporter of polished diamonds,
      is the fastest growing jewellery exporter and aspires to become a major
trading centre.

At the base of this growth is the massive diamond-manufacturing sector, which
contributes about 80% to the total gems and jewellery export basket. The
industry has grown from its small origins in the 1950s and has established itself as
the world's largest manufacturing centre of cut and polished diamonds for the last
many years, contributing 55% of the world supply in terms of value and 80% in
terms of caratage. Nine out of ten stones set in jewellery worldwide come from
India.

India is the largest    India is the largest consumer of gold in the world. It is
manufacturer of         estimated that the current annual demand for gold in the
polished                country is well over 800 tonnes. Naturally, India is also the
diamonds, largest       largest fabricator of gold. Perhaps India’s penchant for
consumer of gold        gold and gold jewellery has prevented her from becoming
and fastest             one of the leading jewellery exporters. However, due to
growing jewellery       positive policy measures and the effective cross-learning
exporter.               between diamond and jewellery making industries, coupled
                        with synergy generated by the existence of worldwide
network of Indian diamond channels, India is emerging as a fastest-growing
jewellery exporters in the world, averaging a growth of 44% each year over the last
decade.

India’s strength lies in the more than two million highly skilled workforce in the
country in the gem & jewellery sector, out of which one million are exclusively
engaged in export production. The workforce is economic and therefore most
competitive when compared with any other cutting centres in the world. No
other country in the world can claim of such a huge highly skilled competitive
labour force, which now works on the latest state-of-the-art technology.



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                         EXPORTING PEARLS, GEMS AND JEWELLERY TO HONG KONG




Extensive network of Indian offices all over the world, established by Indian
diamantaries, have allowed Indian gems and jewellery to reach out to consuming
markets more effectively. Indian diamond communities settled in diamond
centres outside India and their various representative associations and bodies have
played a noteworthy role in the development of this trade.

Indian gems and jewellery industry is a brilliant example of India’s export-led
growth. In 2001-02, gems and jewellery exports from India amounted to US$7.53
billion, or nearly one-fifth of the country’s total exports. The industry has
registered a dramatic growth within a decade, with exports having shot up from
US$2.93 billion in 1991-92 to its present level.

India offers a wide variety of gems and jewellery suited for every need of every
market in the world. Innovative technology is merged with highly developed
design skills that have won for Indian designers a number of awards in prestigious
international jewellery design competition is like those organised by de Beers and
the World Gold Council. The largest skilled and trained workforce and vast
resources of polished diamonds and coloured gemstones available at extremely
competitive rates, make India to offer quality jewellery available in attractive price
ranges. The following table provides information regarding India’s gems and
jewellery export destinations:
              INDIA’S GEMS AND JEWELLERY EXPORT DESTINATIONS (APRIL 2001 – MARCH 2002)
                                            (US$ million)
                                                                            TOTAL
                          DESTINATION              DIAMONDS
                                                                       GEMS & JEWELLERY
                           USA                               1972.71               2750.87
                           Hong Kong                         1600.11               1638.36
                           Belgium                            842.35                845.01
                           Japan                              329.22                362.31
                           Israel                             263.85                265.46
(Source: Gems and Jewellery Export Promotion Council, India)
                 EXPORTS OF GOLD JEWELLERY FROM INDIA TO MAJOR MARKETS (1997-2002)
                                            (US$ million)
                                             DESTINATION                  01-02
                                    USA                                       647.02
                                    UAE                                       234.04
                                    UK                                         85.96
                                    Singapore                                  44.99
                                    Hong Kong                                  12.99
                                    Kuwait                                     12.77
(Source: Gems and Jewellery Export Promotion Council, India)


6.2 Major Products

Diamonds and Coloured Stones
Diamonds

India has given the world some of the most rarest and mystic diamonds. India
was, at one time, the undisputed leader in this field. Diamond production in India
can be, traced back to almost the 8th century BC, when the first ever diamond in
the world was mined in India. Some of the superlative, most famous diamonds of
the world like the Great Moghul, Kohinoor, Hope, Pitt, Nizam, Idol’s Eye,
Orloff, etc. were born in India. In fact, India was the sole producer and supplier



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of diamonds to the world before the discovery of Brazilian fields in the 17th
century and the later emergence of South Africa, Russia and Australia, as major
producers.

India has been well known over the centuries as a producer of fine ornaments of
many styles, shapes and in different materials to suit all tastes and pockets.
Savings, particularly in the countryside, are usually stored away in the form of gold
and silver jewellery to serve the dual purpose of adornment as well as investment.
No wonder, it is the largest consumer of gold in the world.

The tiny cottage activity of yester years has blossomed into a mammoth and
gigantic industry today. The gem & jewellery sector is not thriving just in the
domestic arena. The importance of this industry can be gauged from its
contribution to the national exchequer. This segment remains the top export
revenue earner for the country. In fact, 1/5 of the foreign exchange earnings
come from the exports of gems and jewellery.
                                      INDIA’S EXPORT OF GEMS AND JEWELLERY
                                                    (US$ million)
                                             DIAMONDS           TOTAL GEMS & JEWELLERY
                           1968-1969                       40                         62
                           1978-1979                      846                        887
                           1988-1989                    2910                        3145
                           1998-1999                    5026                        6212
                           1999-2000                    6648                        8145
                           2000-2001                    6187                        7779
                           2001-2002                    5972                        7556
(Source: Gems and Jewellery Export Promotion Council, India)

Diamonds is the single largest commodity exported from India. The success story
of the Indian diamond industry is unique. From humble beginnings, India rose to
become the world leader in a span of just two decades. India now accounts for
nearly 55% of world net exports of cut & polished diamonds in value terms, 90%
in terms of pieces and 80% by caratage. No other export segment of the country
has such a significant share in the world market.

1999-2000 was a record-breaking year for the Indian gem and jewellery sector.
Crossing the US$8 billion mark, the exports registered a performance of
US$8145.02 million (Rs.35169.80 crore) compared with US$6211.66 million
(Rs.26038.32 crore) in 1998-99, an overall increase of 31.12%.

Various factors have contributed to this feat. At the forefront is the skill of the
Indian artists and. The entrepreneurship of the Indian businessmen, coupled with
establishment of a marketing network worldwide, supported by strong financial
base of the industry and the financial institutions of the country.

Today, after creating a niche for itself in the diamond world with small diamonds,
India has gone on to develop the skills for cutting and polishing largest stones and
fancy cuts. Its large modern factories incorporate the state of the art technology,
including a large number of laser missions.
                     INDIA’S EXPORT OF CUT & POLISHED DIAMONDS TO MAJOR MARKETS
                                              (US$ Million)




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                                       2001-2002                SHARE %          2000-2001           SHARE %
    USA                                         1972.71                33.03            2144.33             34.66
    Hong Kong                                    1600.11              26.79             1669.97            26.99
    Belgium                                       842.35               14.11             908.22             14.68
    Japan                                         329.22                5.51             375.05              6.06
    Israel                                        263.85                4.42             268.32              4.34
(Source: Gems and Jewellery Export Promotion Council, India)
                         INDIA’S IMPORT OF ROUGH DIAMONDS FROM MAJOR SUPPLIERS
                                               (US$ million)
                                           2001-2002              SHARE %          2000-2001         SHARE %
     Belgium                                         2438.86            57.99             2535.68          58.29
     UK                                              1042.92             24.8             1130.27          25.98
     Israel                                            240.90            5.73              310.37           7.14
     Hong Kong                                         388.96            9.25              323.17           7.43
     UAE                                               171.69            4.08              167.81           3.86
(Source: Gems and Jewellery Export Promotion Council, India)

Coloured Gemstones

India has always been a major centre of the coloured gemstone trade. Nine out of
ten emeralds in the world are polished in India. Recently Tanzanite has swept the
jewellery fashion world and seven out of ten tanzanite by pieces and 80% by value
are polished in and exported from India.

The coloured gemstones industry, which is centred in and around Jaipur, is also
diversifying into gemstone-studded jewellery manufacturing and exporting on a
large scale.
                        INDIA'S EXPORT OF COLOURED GEMSTONES TO MAJOR MARKETS
                                               (US$ million)
                                      2001-2002              SHARE %            2000-2001           SHARE %
     U.S.A.                                      88.91              48.67               103.72             51.00
     Hong Kong                                   24.28              13.29                30.33             14.91
     Thailand                                    21.57              11.81                19.02              9.35
     Japan                                       28.00              15.33                16.56              8.14
     Germany                                      5.48               3.00                11.28              5.55
     Switzerland                                  4.28               2.34                 7.07              3.48
     France                                       2.56               1.40                 2.70              1.33
     Italy                                        6.34               3.47                 8.19              4.03
     Others                                       1.27               0.70                 4.49              2.21
     Total                                      182.69                100               203.36              100
(Source: Gems and Jewellery Export Promotion Council, India)

Jewellery

Recently, India is emerging as a fastest-growing jewellery exporter in the world,
averaging a growth of 44% each year over the last decade. Exports of gold
jewellery in 2001-02 have touched US$1,166 million from just US$304 million in
1991-92. India's export jewellery industry is making rapid strides in terms of
missionary and design development. It also offers quality, designed and
management, which are on par with world standards.

India is known to be the largest consumer of gold in the world. It is estimated
that the current annual demand for gold in the country is well over 800 tonnes.
Naturally, India is also the largest fabricator of gold. Perhaps India’s penchant for
gold and gold jewellery has prevented her from becoming the world's leading
jewellery exporter; as a result, we have not been able to replicate our success story
of diamond exports in the field of jewellery exports.




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India’s jewellery      Although diamond exports started picking up in the
exports jumped         seventies/eighties, our jewellery exports could not take off
from US$203            due to the controls that existed at the time. After the repeal
million in 1990-91     of the Gold Control Act of 1961 during the initial stages of
to US$1,160            Indian economic liberalisation, jewellery exports started
million in 2001-02     picking up. The diamond community ventured in to the
                       jewellery manufacturing. The Export Processing Zones
set-up across the country started attracting jewellery manufacturers who quickly
set-up their base in these complexes and started exporting jewellery which was in
demand in the western markets. And within a short span of eight years India’s
jewellery exports jumped from US$203 million in 1990-91 to US$1.16 billion in
2001-02.

Indian designers have made a mark on the world jewellery scene and won
recognition for design development as well. Our designers have learned quickly
and are winning awards at international competitions underscoring the ability of
the Indian industry to cater to varied tastes in varied markets. This ability to adapt
and innovate demonstrates the strength of the Indian jewellery industry, which is a
thousand year old industry. All aspects of jewellery making are advancing towards
international standards with relative ease. It is only a matter of time before India
becomes the most sought after jewellery centre and has the same position in the
international jewellery market that it enjoys in the diamond and coloured
gemstone market, globally.

The Government too has played a progressive role and its pragmatic policies have
boosted the industry’s own efforts. In recent years, the jewellery industry has
been earmarked as one of the thrust areas for exports and appears to have a
sparkling future ahead of it.
                           INDIA’S EXPORT OF GOLD JEWELLERY TO MAJOR MARKETS
                                                (US$ million)
                                DESTINATIONS               2001-2002       SHARE %
                             U.S.A.                               647.03             55.45
                             U.A.E.                               234.04             20.06
                             U.K                                  111.24              9.53
                             Singapore                             44.99              3.86
                             Hong Kong                             12.99              1.11
                             Switzerland                            9.13              0.78
                             Kuwait                                12.77              1.09
                             Germany                               11.95              1.02
                             Others                                82.69              7.09
                             Total                               1166.83              100
(Source: Gems and Jewellery Export Promotion Council, India)


6.3 Policy Measures

Exim Policy 2002-07

Following were the major highlights of the Exim Policy announcements for the
year 2002-2003 (April 2002 / March 2007 Policy, amended as on March 2003 ):

      •     Import of Rough Diamonds allowed without licences at zero percent
            duty. Licensing regime for rough diamond abolished.



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     •    Value addition Norm for Plain Gold/Platinum/Silver jewellery
          articles reduced from 10% to 7%.
     •    Import of Gold Jewellery and Silver Jewellery allowed at applicable
          rate of duty.
     •    No Seizure of stock will be made by any agency affecting
          manufacturing activity (subject to certain conditions).
     •    Authorised offices/agencies in India of GIA, IGI, EGL, HRD, WDC
          allowed for exporting cut & polished diamonds of 0.50 of a carat and
          above to the said laboratories/agencies for Certification/Grading and
          re-import with a view to encourage and promote exports of such
          diamonds.
     •    Jaipur and Hyderabad Ports included for Personal Carriage of Gems
          and Jewellery Export/Import Parcels
     •    Diamond Imprest Licence for import of cut and polished diamonds
          includes semi-processed diamonds, half cut diamonds, broken in any
          form for mixing.
     •    Cut and Polished diamonds also included under Personal Carriage for
          Export Promotion Tours/temporary displays.
     •    100% retention of foreign exchange in EEFC account as special
          strategic package for status holders, Normal repatriation period
          extended from 180 days to 360 days.
     •    Supply from DTA to SEZs termed as physical exports
     •    Offshore Banking Units to be permitted in SEZs.
Budget 2003-04

The Ministry of Commerce provides support to the gem & jewellery export sector
through its policy measures continuously. Following are the elements in the
Union Budget 2003-04 concerning the gems and jewellery industry:

     1.       Rough Coloured Gemstones import allowed without licence at
              0% duty
     2.       Cut and Polished Diamonds and Cut and Polished Coloured
              Gemstones import allowed at reduced duty, which is 5%. (Earlier
              it was basic duty 15%)
     3.       Import of findings and mountings allowed. (Earlier it was under
              OGL with applicable rate of duty, now allowed at concessional
              rate of duty)
     4.       Import of gold bar (TT) other than bars, bearing manufacturers'
              or refiner's engraved serial number and weight expressed in
              metric units and gold coins at Rs.100 per 10 gms.
     5.       Import of (plain gold jewellery and mountings and findings) gold
              in any form including tola bars and ornaments, but excluding
              ornaments studded with stones or pearls at concessional rate of
              duty Rs.250/- per 10 gms.
     6.       Silver in any form at Rs.500 per kg (No change)




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6.4 Organisations and Institutions

The Gems & Jewellery Export Promotion Council

the gems and jewellery export promotion Council is the apex body of a dynamic
industry and was set up by the Ministry of Commerce, Government of India in
1966. It has played a significant role in revolution of the industry to its present
stature and moulded the scattered efforts of individual exporters into a powerful
engine driving the country's export-led growth.

The council presently has over 7000 members spread all over the country. With
its headquarters in Mumbai, it has regional offices in Delhi, Kolkata, Chennai,
Jaipur and Surat. The council's primary objective is to promote and thereby
enhance exports of gems and jewellery from India. The other functions of the
council are:

    •    to provide guidance and information to members
    •    to liaise between the trade and the government on issues pertaining to
         the industry
    •    to facilitate foreign buyers
    •    to provide training and R&D support for the development of the
         trade
the council organises delegations, participates in played tennis around the world,
including the USA, Europe, Hong Kong and the Middle East, organises India
international jewellery show, conducts seminars, workshops and conferences and
ranks institutions for technology improvement and training.

Contact:
THE GEMS & JEWELLERY EXPORT PROMOTION COUNCIL
Diamond Plaza, 5th Floor, 391-A, Dr. Dadasahed Bhadkamkar Marg,
Mumbai 400004
Phone: +91.22.2382.1801 to 06
Fax: +91.22.2308.8752
Email: gjepc@vsnl.com

(For addresses of the regional offices, please see Part 8: Resources)
Institutions
Jewellery Product Development Centres

The Jewellery Product Development Centre (JPDC) was first set up in Mumbai in
1985 and subsequently in New Delhi and Jaipur as well. These Centres impart
training in the latest techniques of jewellery design and the manufacturer through
regular courses and conduct workshops for advanced to training in different
fields.
Contact:
JEWELLERY PRODUCT DEVELOPMENT CENTRE, MUMBAI
D. -- 15, Commerce Centre, 4th Floor,
Tardeo Road, Mumbai 400034
Phone: +91.22.2492.1527
Fax: +91.22.2496.6498




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                   EXPORTING PEARLS, GEMS AND JEWELLERY TO HONG KONG




Email:jpdcmumbai@vsnl.net

JEWELLERY PRODUCT DEVELOPMENT CENTRE, DELHI
F Block, Jhandewalan Flatted Factories Complex,
Rani Jhansi Road, New Delhi 110055
Phone: +91.11.2353.9063
Fax: +91.11.2355.1186
Email: jpdc@mantraonline.com

JEWELLERY PRODUCT DEVELOPMENT CENTRE, JAIPUR
Rajasthan Chambers Bhawan, M.I. Road
Jaipur 302001
Phone: +91.141.570439
Email: gjepcjp_jp1@sancharnet.in

Indian Diamond Institute

Based in India's Diamond City, Surat, Indian Diamond Institute (IDI) offers full-
time, part-time and the correspondence courses in three languages, with hostel
facilities and the special packages for overseas students. It is an accredited training
centre for a number of international institutions. The GJEPC has recently
launched the Sardar Patel Centre of Jewellery Design and Manufacture on the IDI
campus in association with the Ministry of Commerce and the Government of
Gujarat.
Contact:
INDIAN DIAMOND INSTITUTE
Katargam, GIDC, Sumul Dairy Road,
Surat 395008
Phone: +91.261.7480.809 / 7481.110
Email: idisurat@vsnl.com
Web: http://www.diamondinstitute.ac.in

Indian Gemmological Institute

The New Delhi based Indian Gemmological Institute (IGI) provides training in
identification and grading of diamonds and coloured gemstones
Contact:
INDIAN GEMMOLOGICAL INSTITUTE
F Block, Jhandewalan Flatted Factories Complex,
Rani Jhansi Road, New Delhi 110055
Phone: +91.11.2367.9732

Gem Testing Laboratory

The Gem Testing Laboratory at Jaipur, which celebrated its Silver Jubilee in 1997,
offers comprehensive training and a wide variety of gemstones related courses.
Recently, it has launched a full-fledged gemstone testing diploma course.
Contact:
GEM TESTING LABORATORY
Rajasthan Chambers Bhawan, M.I. Road
Jaipur 302001
Phone: +91.141.570439
Email: gjepcjp_jp1@sancharnet.in




54                                                Consulate General of India, Hong Kong
                                                                 7
                                                                    Part




7. Background Information
India – Hong Kong Relations
India – China Economic Links
Practical Business Tips


7.1 India-Hong Kong Relations

Overview




L       inks between India and Hong Kong date back to the 1840s, when the
        British came to the territory and have since flourished to encompass
        many fields of activity, including trade, culture, tourism and academics.
Over the past more than 160 years, the Indian community has become
increasingly integrated into Hong Kong and has contributed not only to the
local community, but also to bilateral relations. Trade has traditionally been the
main link, with sourcing from and supplying to India being a long-standing
feature. Hong Kong has also been an active partner for India, with bilateral
trade reaching US$4 billion in 2002, increasing Foreign Direct Investment
coming from Hong Kong to India and almost 30% of Foreign Institutional
Investment into India originating from Hong Kong.

Members of the         Relations between Hong Kong and India, besides the
Indian community       prominence of trade, have also expanded to many other
have participated      areas. Members of the Indian community have
actively in creating   participated actively in creating some of Hong Kong’s
some of Hong           most well known institutions, including the Hong Kong
Kong’s most well-      University, the Hong Kong and Shanghai Banking
known institutions.    Corporation, the Ruttonjee Hospital and Star Ferry. A
                       number of cultural activities are organised by Indians in
Hong Kong, keeping them in touch with India. In addition, increasing
academic exchanges, at both formal and informal levels, have been taking place,
contributing to the strengthening of these links. The Consulate General of
India promotes academic, cultural and commercial exchanges between Hong
Kong and India and the success of these efforts can be seen by way of
increasing interaction. The Consulate also actively promotes tourism to India
and the number of visas issued has been going up, crossing 12,000 in 2002.
The total number of tourist arrivals from India, too, is on the increase, the
figure for 2002 being more than 215,000.




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The Commission for India was set up in 1951 and was re-designated as the
Consulate General of India on 15 October 1996.

Trade Links

The following table shows the trend in India -Hong Kong trade over the past
few years:
                                   INDIA – HONG KONG TRADE OVERVIEW
                                               (US$ million)

  YEAR       INDIAN IMPORTS         INDIAN EXPORTS          TOTAL     TRADE BALANCE FOR INDIA             %
  1997                       685                    2110       2795                         +1425
  1998                       679                    1876       2555                         +1197         - 8.6%
  1999                      1099                    2216       3315                         +1117        +29.8%
  2000                      1294                    2624       3918                         +1330        +18.2%
  2001                      1202                    2290       3491                         +1088        -10.9%
   2002                       1441                  2494       3935                         +1053        +12.7%
(Source: Census & Statistics Department, HKSAR)

According to DGCI&S statistics, with Rs.112 billion (US$2.3 billion approx)
worth of imports from India during 2001-02, Hong Kong was the third
largest destination for Indian products after the USA (Rs.405 billion) and
UAE (Rs.118 billion). However, the share of India’s trade with Hong Kong is
less than 1%, which provides vast scope for further growth in bilateral trade
between India and Hong Kong.

India’s trade with Hong Kong is characterised by dominance of a few products
that form the bulk of the bilateral trade. Pearls, precious and semi-precious
stones, textile yarns and leather are important Indian export items and pearls,
precious stones, silver & platinum, semi-conductors, telecom equipment, office
equipments, etc are important Indian import items.

In 2002, India was the 17th major trading partner of Hong Kong. India-Hong
Kong trade reached US$3,935 million (+12.7%). Bilateral trade has not only
recovered from the slump in 2001 (US$3,491 million), but also marginally
crossed 2000 levels (US$3,918 million). Indian exports reached US$2,494
million (+8.9%). Of this, US$1,404 million (+12.9%) worth of goods were re-
exported to other countries via Hong Kong. Hong Kong exported US$1,441
million (+19.9%) worth of goods to India. Hence, India had a positive trade
balance of US$1,053 million in 2002.
                                INDIA – HONG KONG TRADE: AN OVERVIEW
                                              (US$ billion)
                                                  2000                       2001                 2002
                                          US$              %          US$           %       US$            %
India to Hong Kong
Exports to Hong Kong                              2.6      +18.4            2.3     -12.7         2.5      +8.9
Hong Kong to India
Domestic Exports                                  0.2       +9.9        0.06        -65.5      0.05        -11.5
Re-exports                                        1.1       +19          1.1        +1.8        1.4       +21.6
Total exports                                     1.3      +17.7         1.2         -7.1       1.4       +19.9
Total bilateral trade                             3.9      +18.2         3.5        -10.9       3.9       +12.7
Trade balance for India                                     +1.3                    +1.1                     +1
(Source: Census & Statistics Department, HKSAR)




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Indian Exports to Hong Kong

In 2002, India exported a total of US$2,494 million worth of products to Hong
Kong, marking a growth of +8.9%. Some of the major export items from
India to Hong Kong include Pearls, precious & Semi-precious stones, Leather,
Textile yarn, Flat-rolled products of Alloy Steel, Jewellery, etc. The following
table provides details of the top ten export items from India to Hong Kong in
2002.
                    INDIAN EXPORTS TO HONG KONG - TOP TEN PRODUCTS (2002)
                                         (US$ million)
                              COMMODITY                        VALUE     SHARE     GROWTH
Pearls, precious & Semi-precious stones                           1825      73.2       +11.7
Leather                                                            159       6.4       +48.0
Textile yarn                                                       102       4.1        -37.8
Flat-rolled products of Alloy Steel                                 50       1.9      +236.7
Jewellery                                                           29       1.2       +14.3
Polymers of Styrene, in primary forms                               20       0.8      +226.8
Other Plastics in Primary form                                      18       0.7       +26.7
Synthetic organic colour lakes/colouring matter/preparations        18       0.7        +4.8
Textile fabrics, woven, other than cotton/man-made fibres           16       0.6        +5.5
Medicinal & pharmaceutical products, other than medicaments         15       0.6        -11.1
(Source: Census & Statistics Department, HKSAR)

India is the single largest exporter of pearls, precious and semi-precious stones
to Hong Kong and holds more than 40% share in Hong Kong’s total imports
from the world. This is also the single most important item of Indian exports
to Hong Kong. It accounted for 73.2% of the total exports from India to
Hong Kong in 2002 and marked a positive growth of 11.7%. Most of these
imports are re-exported from Hong Kong to other markets, including North
America, Europe, etc. Hong Kong is the second largest importer of leather
and leather products in the world, next to the USA, holding a 12% share in the
global leather imports. Leather is one of the fastest growing items of exports
from India to Hong Kong and is the second most important item of Indian
exports to Hong Kong. Indian export of leather reached the value of US$159
million (6.4% of total Indian exports to Hong Kong) in 2002 marking a +48%
growth from its 2001 level during which it grew again by +46.5%.

India exported US$102 million worth of textile yarn in 2002. Textile yarn
forms 4.1% of the total Indian exports to Hong Kong. However, India’s
export of textile yarn to Hong Kong has declined by –37.8% in 2002 from
US$164 million in 2001. Starting from a low base, flat-rolled products of alloy
steel has marked +236.7% growth in 2002 and reached the value of US$50
million from US$14 million in 2001. With the need for quality steel products
increasing and India’s focus on exporting manufactured items, export of flat-
rolled products of alloy steel from India to Hong Kong is expected to grow
further.

Jewellery: Export of jewellery from India to Hong Kong is also on the rise. It
has reached US$29 million marking a growth of 14.3%. This is followed by
polymers of styrene in primary forms (US$20 million, +226.8%), other plastics
in primary form (US$18 million, +26.7%), synthetic organic colour
lakes/colouring matter/preparations (US$18 million, +4.8%), synthetic textile



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                        EXPORTING PEARLS, GEMS AND JEWELLERY TO HONG KONG




fabrics (US$16million, +5.5%) and medicinal and pharmaceutical products
(US$15 million, -11.1%) form major export items of India.
Focus Products for Exports to Hong Kong

The above-mentioned products are important export items from India to
Hong Kong. There are many more products offering promising export
opportunities from India to Hong Kong. Upon analysing Hong Kong’s top
imports and India’s top exports, feedback from trading community, trends in
Indian exhibitor participation in Hong Kong trade fairs and other relevant
factors, the following products have been identified as focus products for
export from India to Hong Kong:

             •    Gems and Jewellery
             •    Cotton Yarn, Fabrics
             •    Dyes/Intermediaries
             •    Finished Leather
             •    Drugs, Pharmaceuticals & Chemicals
             •    Electronic Goods
             •    Plastics
             •    Primary and Semi Finished Iron & Steel
             •    Manufactures of Metals
             •    IT services
             •    Apparels
             •    Travel bags and footwear
             •    Handicrafts
             •    Agricultural and food products
             •    Telecommunication equipment
Indian Imports from Hong Kong

In 2002, Hong Kong exported US$1,441 million (+19.9%) worth of goods to
India. The important items of exports are pearls, precious and semi-precious
stones (US$652 million, +18.5%), telecommunication equipment & parts
(US$189 million, +207.8%), semi-conductor, electronic valves & tubes, etc.
(US$76 million, +69.4%), Parts & accessories of office machines/computers,
(US$46 million, -21.1%) and silver and platinum (US$40 million, -52.9%).
                     INDIAN IMPORTS FROM HONG KONG - TOP TEN PRODUCTS (2002)
                                           (US$ million)
                             COMMODITY                            VALUE      SHARE      GROWTH
Pearls, precious & semi-precious stones                          652       45.3      +18.5
Telecommunications equipment & parts                             189       13.1      +207.8
Semi-conductors, electronic valves & tubes, etc.                 76        5.2       +69.4
Parts & accessories of office machines/computers                 46        3.2       -21.1
Silver & Platinum                                                40        2.8       -52.9
Watches and clocks                                               37        2.6       -6.9
Computers                                                        34        2.4       +72.0
Miscellaneous manufactured articles                              27        1.9       +16,2
Cotton fabrics, woven                                            20        1.4       +30.0
Instruments & appliances, for medical, surgical, dental or       19        1.3       +33.2
veterinary purposes
(Source: Census & Statistics Department, HKSAR)

Investment Links

Hong Kong is the leading financial centre of Asia and is one of the top sources
of outward direct foreign investment in Asia. In 2001, Hong Kong invested



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about US$11 billion. Hong Kong’s investment in the Chinese Mainland is
about US$187 billion in cumulative direct investment.

The official figures   India has approved about 300 foreign collaboration
about Hong Kong’s      proposals from Hong Kong with a corresponding FDI
investment in India    of about US$500 million. Hong Kong companies
do not show the        ranked 19th in the list of countries in terms of
complete picture,      cumulative FDI. The official figures about Hong
as bulk of the         Kong’s investment in India do not show the complete
investments from       picture, as bulk of the investments from Hong Kong are
Hong Kong are          routed through other countries like Mauritius, due to
routed through
                       preferential tax policy extended by India to these
other countries.
                       countries.     Some of the important Hong Kong
                       companies that have invested in India are CLP Power
International Ltd, Hutchison Telecommunications, Pacific Century Cyber
Works, Hong Kong & Shanghai Banking Corporation, Standard Chartered
Bank, Jardine Group of Companies, Noble Group, Wittis Group, Mandarin
and other hotels, etc. Their investments are in sectors such as fuels (power),
service sector (financial and non-financial), hotel and tourism,
telecommunication (cellular, mobile/basic telephone services), manufacturing
(garments, electronics), etc. About 30% of FII inflows into India are routed
through Hong Kong.

7.2 India - China Economic Links

Trade Links

India and China resumed trade officially in 1978. In 1984, the two sides signed
the Most Favoured Nation Agreement. With improving relations, trade and
economic cooperation between India and China has grown rapidly in the last
decade from US$264.8 million in 1991 to US$4.95 billion for 2002, which
marks an increase by 37.5% over 2001. While Chinese exports increased by
40.8%, Indian exports to China rose by 33.7%.

India’s main exports to China in 2002 were iron and chrome ore, slag, ash, iron
and steel products cotton yarn/fabric, organic chemicals, marine products,
granite and marble stones, plastics, precious stones and inorganic chemicals,
etc. China’s main exports to India included organic chemicals, metallurgical
coke and coal, electrical and non-electrical machinery, TV picture tubes, silk
yarn, manmade fabrics, Phosphates, etc.

Trends in India’s Exports to China

There has been an increase of almost 800% in India’s plastic exports to China
between 1999 and 2000 and an increase of 130% between 2000 and 2001.
China imports around US$14 billion worth of plastic and the scope for exports
is huge. Use of plastic in China is of recent origin and there is great potential in
this market. India's textile exports to China mainly include cotton textiles that
comprise of cotton raw and cotton yarn, fabrics and made ups. There is a great




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                   EXPORTING PEARLS, GEMS AND JEWELLERY TO HONG KONG




demand for synthetic and rayon fabrics in China. High quality cotton garments
is also an area of opportunity for Indian exporters.

Statistics from India show a surge of 600% in Indian seafood & fish exports to
China to US$84 million in 2000. At present, India takes the role of the third
largest seafood & fish exporter to the Chinese market, next only to Russia and
Japan. The potential lies in exploiting the high quality fish market e.g. prawn,
shellfish etc. Live fish is another potential area.

Exports of hides and skins to China from India have been growing steadily
over the past few years. It reached a figure of US$38.8 million in 2001 an
increase of about 37% from 2000. There is, however, considerable scope to
increase India’s leather exports to China if we adopt advanced technology for
processing and finishing of rawhide. India ranked 14 in 2001. China consumes
about 28 tons of gold annually and is a world leader in platinum consumption.
China also accounts for 1.8% of the world’s diamond market. With an average
annual growth of over 6%, China’s jewellery market is predicted to reach
US$22 billion by 2010, accounting for 10% of the world market. In the first
eleven months of 2002, China imported diamonds worth US$38 million. This
is one of the potential areas for India, which in 2001-02 exported diamonds
worth US$0.06 million to China.

Although steel exports from India to China stand at 200,000 tons, it is turning
out to be a key export market for India. China has shown interest in imports
from India. Indian companies like the Steel Authority of India, Essar Steel,
Jindal Strips and Ispat are looking at China in a big way to expand their exports.
The Indian Steel Alliance, working under the aegis of the Confederation of
Indian Industry (CII), has already initiated talks with the Chinese government
and steel companies in China to increase trade between the two countries.

China offers a huge market for stone imports (granite, marble, slate, etc.). India
is one of the largest exporters of granite and other building material to China.
The 2008 Olympics alone will be presenting a US$34 billion opportunity in
terms of urban infrastructure and 37 new sports facilities. All this will make
China a huge market, since 25% to 30% of decorative stones demand will have
to be met by imports. In organic chemicals, India’s major item of export is
Aluminium oxide. There is great potential in this area because of the fact that
China imported organic chemicals worth US$8.327 billion in 2001.

Future Potential

Presently, India’s    Presently, India’s exports are concentrated in the low
exports are           value-added sector whereas manufactured goods from
concentrated in       India have yet to make a breakthrough in the Chinese
the low value-        Market. However, the areas wherein India can take
added sector.         advantage include export of iron ore, cotton yarn,
                      organic chemicals, marine products, granite,
pharmaceutical and bulk drugs. The future potential for Indian exports is in
the areas of high-grade steel, plastics, machine tools, agro-products, milk and



60                                           Consulate General of India, Hong Kong
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dairy products, automobile accessories, finished leather, software and precious
stones.

Investment Links

The absorption of foreign investment in China is usually of the following kind:
Sino-Foreign Joint Ventures; Sino-Foreign cooperative enterprises; Wholly-
owned foreign enterprises and Cooperative development. Other ways of
investment include compensation trade and processing & assembling. The
Interim Regulations on FDI Directions and the Industrial Catalogue Guiding
Foreign Investment were formulated and promulgated in China in June 1995.
In December 1997, the State Development Planning Commission (SDPC), the
State Economic and Trade Commission (STPC) and the Ministry of Foreign
Trade and Economic Cooperation (MOFTEC) revised the Industrial Catalogue
Guiding Foreign Investment and enhanced the scope of investment in areas
such as agricultural technology, energy, transportation and projects aimed at the
development of the western and central regions of China.

Indian Businesses in China

Some of the Indian    Joint Ventures: Ranbaxy, Aurobindo Pharmaceuticals,
companies in          Dr. Reddy’s Laboratories and NIIT. Wholly-owned
China are:            ventures: Orissa Industries Ltd (Orind), Infosys, Essel
Ranbaxy,              Packaging and TCS. Representative Offices: Tata
Aurobindo, Dr.        Exports, Torrent Group, Lupin Industries, Kanoria
Reddy’s, NIIT,        Chemicals and Industries, Raymond Ltd, Satyam
Orind, Infosys,       Computer Services Ltd, Reliance Industries Ltd, Bry-air,
Essel, TCS, Tata,     Vam Organics, United Phosphorous, State Bank of
Lupin, Raymonds,
                      India, Bank of India and Videocon. The total Indian
Satyam, Reliance,
                      investment in China till end-November 2002 was
etc.
                      US$28.4 million.

Chinese Businesses in India

Major Chinese companies represented in India include China National
Machinery Import and Export Corporation (engaged in selling technology for
mini-blast furnaces), China Shougang International Trade and Engineering
Corporation, China Petroleum Technology and Development Corporation,
China Metallurgical Import and Export Corporation (CMIEC) and
SINOCHEM (China National Chemical Import and Export Corporation).
China Silk Corporation has opened a representative office in India. Konka and
TCL, two Chinese consumer durable companies have set up joint ventures in
India. Huawei Technologies has set up an R&D centre in Bangalore. Some
automobile companies, particularly motorcycle companies are in the process of
establishing joint ventures in India. Many Chinese companies have plans to
open up representative offices in India and 2003 should see a greater influx.
The total approved foreign investment of Chinese businesses in India till
November 2002 is US$148.5 million.




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                 EXPORTING PEARLS, GEMS AND JEWELLERY TO HONG KONG




7.3 Practical Business Tips

Business Tips for Hong Kong

Hong Kong is a metropolitan city and has a good mix of expatriate business
community. However, there are some business practices, which are followed in
general.

Present business        Business in Hong Kong is typically formal. Shaking
card with both          hands and wearing formal business suits are norms.
hands. Look at the      When interacting with Hong Kong business people,
card for a moment       exchanging business cards is a customary first step.
before putting it in    Business cards printed both in English and Chinese are
wallet.                 preferred. Present business card with both hands. Look
                        at the card for a moment before putting it in wallet or
purse. Meetings are always by appointment and punctuality is strictly
maintained. The leader of the team normally leads the team to a venue and
heads the discussion. For delegations, exchange of gifts is normal. Business
luncheons are common. If the menu is discussed in advance, one can explain
what one does not eat. Phrases like non-vegetarian can be interpreted widely
and may include any kind of meat and seafood. Although English is used as a
business language in Hong Kong, Cantonese Chinese is still the most widely
used language, especially among Small and Medium Enterprises (SMEs).
Interpreters, if required, can be hired on hourly basis.

Normal payment methods include Letter of Credit, open account, sight draft
and documents against payments. Documents covering a shipment normally
include an invoice, health certificate and bill of lading/airway bill. For airfreight
shipment, exporter should send the documents to the importer as soon as the
shipment is effected. Indian exporters should contact Hong Kong importers
with offers quoting c.i.f. (cost, insurance and freight) or c.f. (cost and freight)
prices preferably in US currency.

Additional Tips for China

Much of China’s business etiquette draws on its basic cultural values, such as
respect for age and position and an orientation towards group goals rather than
individualism. The following are some of the tips for doing business in China:

Chinese write their family name first. Hence, call them by the name that
appears first after Mr./Ms. Chinese ask personal questions (this is done to
seek common ground). The network of personal connections is very
important in China. This is called ‘guanxi’. Good conversation topics include
enquiry about family, Chinese culture, shopping and life in general. Topics to
avoid include government, politics and Taiwan. The concept of "face" is
important to understanding the Chinese. Be careful to avoid causing someone
to "lose face" by insulting, criticising or embarrassing him or her in front of
others, or by treating the person with less than the proper respect due to his
status in the organisation. Part of Chinese negotiating strategy involves being
an excellent host. One should not misinterpret this as an indication of their



62                                            Consulate General of India, Hong Kong
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attitude towards the individual or the project. The Chinese will not usually
come out directly and say "no" to a proposal. They will find many indirect
ways to reply. One may be greeted by a group of people with applause, such as
when touring a factory. Returning the applause is the proper response.

At work meetings,       Working lunches and dinners, which are usually fairly
seating will follow     elaborate are not only common but are expected in
strict protocol, so     China. Count on attending banquets arranged by the
let the host seat       host. Return the favour if possible. At work meetings,
the guest.              seating will follow strict protocol, so let the host seat the
                        guest. Drinking alcohol is considered friendly. (To
avoid it, citing a medical reason is considered the best bet). During a meal, wait
for the host to make the first toast before drinking and then return the toast.
Clean plate means one is still hungry. Gifts are important. For wrapping gifts,
either red or golden colour wrapping paper may be used. Chinese do not open
gifts when received and when given a gift do not open it unless insisted
(However, in Hong Kong, the recipient is expected to open the gift). Foreign
cigarettes, cognac, fine whisky, quality wine make fine gifts for Chinese.
However, do not give clocks, cut flowers, white objects, for these objects are
associated with death. Do not give food items for they suggest poverty
(However, in Hong Kong, gifting food items is acceptable).




Consulate General of India, Hong Kong                                               63
                                                                      8
                                                                         Part




8. Resources
Key Contacts
Online Resources


8.1 Key Contacts

Hong Kong Contacts

Featured Contacts
Government Bureaux and Agencies
Industry Associations
Important Importers

.Featured Contacts.
HONG KONG JEWELLERY & JADE MANUFACTURERS ASSOCIATION
Flat A, 12/F, Kaiser Estate, Phase 1, 41 Man Yue Street, Hunghom, Kowloon, Hong Kong
Phone: +852.2334.4311
Fax: +852.2764.1956
Email: hkjja@hkstar.com
Web: http://www.jewellery-hk.org

The Hong Kong Jade & Stone Manufacturers Association was established in
1965. In 1997, the Association's name was changed to "Hong Kong Jewellery
& Jade Manufacturers Association" (HKJJA). It sponsors local jewellery
exhibitions and organises local jewellery manufacturers to participate in major
overseas jewellery exhibitions. Besides, it organises seminars, training courses,
talks and conferences in relate to the jewellery and jade industries. It establishes
contacts with relevant government authorities and international organisations.
It also helps developing the "Hong Kong Jewellery Technology Centre".
Furthermore, it provides jadeite and gemstone identification services to the
industry and the public through their subsidiary, the Hong Kong Jade & Stone
Laboratory Ltd, provides Jewel CAD courses and rapid prototype services to
the industry and provides up-to-date information on all aspects of the jewellery
industry through publication of trade magazines. It promotes the members'
products. Publications are compiled and distributed to buyers around the
world and published through the internet. Their in-house production studio
also provides related services such as graphic consultancy, professional
photography and expert printing.
HONG KONG JEWELLERS' & GOLDSMITHS' ASSOCIATION LTD.
13/F., Hong Kong Jewellery Building, 178-180 Queens Road Central, Hong Kong



Consulate General of India, Hong Kong                                                  65
                  EXPORTING PEARLS, GEMS AND JEWELLERY TO HONG KONG




Phone: +852.2543.9633
Fax: +852.2850.7361
Email: hkjewellers@netvigator.com

The Hong Kong Jewellers' & Goldsmiths' Association Limited was established
in 1953. The services it provides include setting down the price of jewellery
gold every day and notifying its members of such prices; submitting the
representative views of the Association to the Government on legislative
matters which affect the jewellery trade; holding regular meetings with the
Crime Prevention Bureau of the Royal Hong Kong Police and circulating
information on the latest security systems to its members; sponsoring/
organising jointly with the Hong Kong Trade Development Council in
providing promotional activities concerning the jewellery trade and industry of
Hong Kong; assisting the Hong Kong Tourist Association in assessing the
genuineness of gems and diamonds; cooperating with the Hong Kong
Consumer Council in dealing with consumers’ opinions in the jewellery trade.
The Association also provides trade enquiry services, gold content testing
services, seminars, recreational and cultural activities to its members.
HONG KONG JEWELLERY MANUFACTURERS' ASSOCIATION
Unit G, 2/F, Kaiser Estate Phase 2, 51 Man Yue Street, Hung Hom, Kowloon, Hong Kong
Phone: +852.2766.3002
Fax: +852.2362.3647
Email: hkjma@jewelry.org.hk
Web: http://www.jewelry.org.hk

Hong Kong Jewellery Manufacturers' Association was established in 1988. To
help the jewellery manufacturers in Hong Kong, it increases the productivity of
jewellery manufacturing and strengthens the ability of Hong Kong to compete
with overseas manufacturers.           It sets up close liaison among local
manufacturers, exchanging ideas and tackling problems. Besides, it attains a
more prestigious status for Hong Kong's jewellery industry and promotes the
industry to overseas markets. It makes proposals on trade and industrial issues
to appropriate authorities. It also provides better training opportunities for
potential artisans. It gathers and provides trade and industrial information. It
improves the relationships and promotes better understanding amongst
jewellery manufacturers and between jewellery manufacturers and other
members of the community. It prints and publishes periodicals, books, or
leaflets about the activities of the Association.
HONG KONG JEWELLERY INDUSTRY TECHNOLOGY CENTRE
5/F, HKPC Building, 78 Tat Chee Avenue, Kowloon, Hong Kong
Phone: +852.2788.5531
Fax: +852.2788.5522
Email: hkjitc@hkpc.org
Web: http://www.hkpc.org/hkjitc

The Hong Kong Jewellery Industry Technology Centre (HKJITC) was
established in 1995, with funding support from the Industry and Technology
Development Council of the Hong Kong Government. It is jointly managed
by the Hong Kong Jewellery Manufacturers' Association (HKJMA) and the
Hong Kong Productivity Council (HKPC). The major objective of the



66                                             Consulate General of India, Hong Kong
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HKJITC is to provide integrated support services to the local jewellery industry
in order to enhance its market competitiveness and to extend its manufacturing
capabilities. The HKJITC is based at the HKPC Building to monitor
technology trends, develop technologies for strategic needs and disseminate
relevant information and technologies to the jewellery industry.
THE INDIAN CHAMBER OF COMMERCE HONG KONG
2/F, Hoseinee House, 69 Wyndham Street, Central, Hong Kong
Phone: +852.2523.38771
Fax: +852.2845.0300
Email: secgen@icchk.org.hk
Web: http://www.icchk.org.hk

The Indian Chamber of Commerce Hong Kong (ICCHK) was established on
12 December 1952. It is consulted by the Hong Kong Government on
matters of importance in the areas of trade, commerce, shipping, and
manufacturing. The Chamber deals with the trade and economic relationship
between Hong Kong, Mainland China, and India, as well as other parts of the
world. The Chamber is a founder member of the Hong Kong Shippers'
Council. It is a member of the Council of Hong Kong Indian Associations. It
works closely with the Consulate General of India to organise various trade
promotional events and activities. ICCHK is a member of International
Chamber of Commerce, Paris and Confederation of Asia Pacific Chambers of
Commerce and Industry, Taipei. The current membership of around 500
comprises Indian businesses in Hong Kong, leading India-based private- and
public-sector companies operating from Hong Kong, non-Indian companies
and Indian professionals.
HONG KONG TRADE DEVELOPMENT COUNCIL
38/F, Office Tower, Convention Plaza, 1 Harbour Road, Wanchai, Hong Kong
Phone: +852.2584.4066, +852.2584.4333
Fax: +852.2824.0249
Email: hktdc@tdc.org.hk
Web: http://www.tdctrade.com

The Hong Kong Trade Development Council (HKTDC), a statutory body for
promoting Hong Kong's trade, was established in 1966. It has 51 offices in 34
countries and regions. It is involved in Trade Enquiry Service (featuring
600,000 listings), accessible through its website. It owns the HK Convention
and Exhibition Centre, and organises or co-sponsors major international trade
shows in Hong Kong and overseas covering a wide range of consumer and
industrial products. It also publishes more than 20 product/service magazines
and trade directories, which have a combined worldwide circulation of more
than two million. HKTDC appointed a private firm as its representative in
Mumbai in early 2002.
HONG KONG GENERAL CHAMBER OF COMMERCE
22/F, United Centre, 95 Queensway, Hong Kong
Phone: +852.2529.9229, +852.2823.1211
Fax: +852.2527.9843
Email: chamber@chamber.org.hk
Web: http://www.chamber.org.hk




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                  EXPORTING PEARLS, GEMS AND JEWELLERY TO HONG KONG




The Hong Kong General Chamber of Commerce is the oldest (founded in
1861) and largest (around 4,000 corporate members) business organisation in
Hong Kong. Its membership consists of multinational companies, Hong
Kong companies and Mainland China companies, and a growing number of
overseas associate and Mainland associate members. HKGCC has been a
functional constituency representing Hong Kong’s business community in the
Legislative Council since 1988. Their members elect the Chamber’s own
representative to the 60-member Legislative Council every four years.
Moreover, of the over 70 Hong Kong bodies and committees in which 64
Chamber members participate, half are official government advisory bodies,
such as the Labour Advisory Board, Trade Advisory Board and Joint Liaison
Committee on Taxation, etc.
CHINESE GENERAL CHAMBER OF COMMERCE
4/F, 24-25 Connaught Road, Central, Hong Kong.
Phone: +852.2525.6385
Fax: +852.2845.2610
Email: cgcc@cgcc.org.hk
Web: http://www.cgcc.org.hk

The Chinese General Chamber of Commerce was founded in 1900. Presently
it has a membership of over 6,000. The Chamber maintains close contacts
with trade associations and Chinese chambers all over the world, in particular
those in Mainland China. The Chamber has representatives in the Legislative
Council, Hong Kong Monetary Authority, Information Technology and
Broadcasting Bureau, and Education and Manpower Bureau. It is also
represented on a number of boards and committees of various public and
private bodies, including the Hong Kong Trade Development Council, the
ICAC, the Hong Kong Food Council, the Hong Kong Shippers' Council, as
well as the Manpower Development Committee and the Labour Advisory
Board in the SAR government.
CHINESE MANUFACTURERS’ ASSOCIATION
CMA Building, 64-66 Connaught Road, Central, Hong Kong
Phone: +852.2545.6166
Fax: +852.2541.4541
Email: info@cma.org.hk
Web: http://www.cma.org.hk

Established in 1934, the Chinese Manufacturers' Association of Hong Kong
(CMA) has over 3,700 member-companies. The CMA liaises with international
bodies as well as trade and industrial associations overseas for the exchange of
information and ideas and for the promotion of trade, industrial progress, and
to foster mutual understanding and cooperation. It is a member of the
International Chamber of Commerce. The CMA also maintains close contact
with consulates and trade commissions of overseas governments in Hong
Kong.




68                                               Consulate General of India, Hong Kong
EXPORTING PEARLS, GEMS AND JEWELLERY TO HONG KONG




                                           .Government Bureaux & Agencies.
.Indian PSUs in Hong Kong.
                                           TRADE AND INDUSTRY DEPARTMENT
AIR INDIA
                                           12/F, Trade and Industry Department
01-02, 29/F, Vickwood Plaza, 199 Des
                                           Tower
Voeux Road, Central, Hong Kong
                                           700 Nathan Road
Phone: +852.2522.4771
                                           Kowloon
Fax: +852.2522.2261
                                           Phone: +852.2398.5556
Email: airindia@netvigator.com
                                           Fax: +852.2380.8504
                                           Email: enquiry@tid.gov.hk
BANK OF BARODA (HONG KONG ) LTD
3/F Dina House, Ruttonjee Centre, 11
                                           NON-TEXTILE LICENSING UNIT
Duddell Street, Central, HK
                                           Trade and Industry Department
Phone: +852.2521.5166
                                           12/F, Trade and Industry Department
Fax: +852.2868.4701
                                           Tower
Email: bobihkg@netvigator.com
                                           700 Nathan Road
                                           Kowloon
BANK OF INDIA
2/F, Ruttonjee Centre, Duddell Street,     Phone: +852.2398.5560, 2398.5486 (D)
Central, Hong Kong                         Fax: +852.2380.8504
Phone: +852.2524.0186                      Email: enquiry@tid.gov.hk
Fax: +852.2810.6149
Email: boihk@netvigator.com                .Industry Associations.
                                           HONG KONG JADE & STONE
INDIAN OVERSEAS BANK (IOB)                 MANUFACTURERS ASSOCIATION
3/F, Ruttonjee House, 11 Duddell Street,   16/F, Hang Lung House,
Hong Kong                                  184-192 Queens Road Central,
Phone: +852.2522.7157                      Hong Kong
Fax: +852.2845.1549                        Phone: +852.2543.0543
Email: iobsm@netvigator.com                Fax: +852.2815.0164

INDO-HONG KONG INTERNATIONAL               HONG KONG JEWELLERS' & GOLDSMITHS'
FINANCE LTD                                ASSOCIATION LTD.
904, AON China Building, 29 Queensway      13/F., Hong Kong Jewellery Building,
Road, Central, Hong Kong                   178-180 Queens Road Central, Hong Kong
Phone: +852.2529.1398                      Phone: +852.2543.9633
Fax: +852.2529.6036                        Fax: +852.2850.7361
                                           Email: hkjewellers@netvigator.com
STATE BANK OF INDIA
Room No. 801-5 Wheelock House, 20          HONG KONG JEWELLERY
Pedder Street, Central, HK                 MANUFACTURERS' ASSOCIATION
Phone: +852.2523.2887                      Unit G, 2/F, Kaiser Estate Phase 2
Fax: +852.2868.1966                        51 Man Yue Street
Email: sbinhk@iohk.com                     Hung Hom, Kowloon, Hong Kong
                                           Phone: +852.2766.3002
UCO BANK                                   Fax: +852.2362.3647
Units 4102-06, 41/F, COSCO Tower, 183      Email: hkjma@jewelry.org.hk
Queen’s Road Central, HK                   Web: http://www.jewelry.org.hk
Phone: +852.2524.9240
Fax: +852.2810.6954                        DIAMOND FEDERATION OF HONG KONG,
Email: ucohk@netvigator.com                CHINA LTD
                                           5B, HK Diamond Exchange Building
NEW INDIA ASSURANCE CO. LTD                8-10 Duddell Street
Man Cheong Building, 15-17 Wyndham         Central, Hong Kong
Street, Central, Hong Kong                 Phone: +852.2524.5081
Phone: +852.2523.9738                      Fax: +852.2877.9831
Fax: +852.2845.2133                        Email: dfhk@diamondfederationhk.com
Email: niahk@asiaonline.net                Web: http://www.diamondfederationhk.cm




Consulate General of India, Hong Kong                                             69
                  EXPORTING PEARLS, GEMS AND JEWELLERY TO HONG KONG




HONG KONG & KOWLOON JADE                    HONG KONG JEWELLERY CO LTD
MERCHANTS UNION ASSOCIATION                 G/F - 3/F, Wah Ming Building, 34 Wong
17/F, Man Fai Building                      Chuk Hang Road, Wong Chuk Hang,
38 Man Ying Street                          Hong Kong
Ferry Point, Kowloon                        Phone: +852.2873.2618
Phone: +852.9032.9009                       Fax: +852.2873.4945
Fax: +852.2388.5388                         Email: agnes@hkjewelleryco.com
HONG KONG JEWELLERY INDUSTRY                C S S JEWELLERY CO LTD
TECHNOLOGY CENTRE                           Unit 605-6, 6/F, Tower 1, Cheung Sha Wan
5/F, HKPC Building                          Plaza, 833 Cheung Sha Wan Road, Cheung
78 Tat Chee Avenue                          Sha Wan, Kowloon, Hong Kong
Kowloon                                     Phone: +852.2745.3111
Hong Kong                                   Fax: +852.2785.5347
Phone: +852.2788.5531                       Email: cssjg@cssjewellery.com
Fax: +852.2788.5522                         Web: http://www.cssjewellery.com
Email: hkjitc@hkpc.org
Web: http://www.hkpc.org/hkjitc             BRIO JEWELLERY CO LTD
                                            Flat 1A, 1/F,
HONG KONG JEWELLERY & JADE                  Fook Shing Industrial Building,
MANUFACTURERS ASSOCIATION
Flat A, 12/F, Kaiser Estate                 1A Yuk Yat Street, To Kwa Wan, Kowloon,
Phase 1, 41 Man Yue Street                  Hong Kong
Hunghom                                     Phone: +852.2363.9038
Kowloon                                     Fax: +852.2765.6688
Phone: 852-23344311                         Email: briojlry@hkstar.com
Fax: 852-27641956
                                            GOLAY BUCHEL & CO (HK) LTD
Email: hkjja@hkstar.com
                                            Room 2203, 22/F Tower 1,
Web: http://www.jewellery-hk.org
                                            Admiralty Centre, 18 Harcourt Road,
                                            Central, Hong Kong
.Important Importers.                       Phone: +852.2861.1162
ISE SHINJU                                  Fax: +852.2529.9681
Shop BW-5, The Peninsula Hotel Shopping     Email: contact@hk.golay.com
Arcade, Tsim Sha Tsui, Kowloon, Hong        Web: http://www.golay.com
Kong
Phone: +852.2722.0870                       WOO LEUNG LEE JEWELLERY COMPANY
Fax: +852 2723.8039                         LTD
Email: ise@hknet.com                        Room 1902-5, 19/F,
                                            Arion Commercial Centre,
TSE SUI LUEN JEWELLERY CO LTD               2-12 Queen's Road West, Sheung Wan,
G/F, Summit Building, 30 Man Yue Street,    Hong Kong
Hunghom, Kowloon,                           Phone: +852.2548.8191
Hong Kong                                   Fax: +852.2858.493
Phone: +852 2333.4221                       Email: sales@wooleunglee.com.hk
Fax: +852.2764.5980                         Web: http://www.wooleunglee.com
Email: jessica@tsljewellery.com
Web: http://www.tsljewellery.com            CONTINENTAL JEWELLERY (MFG) LTD
                                            Unit M & N, 1/F Phase 3, Kaiser Estate,
ISE JEWELLERY CO LTD                        11 Hok Yuen Street, Hunghom, Kowloon,
Shop Ml11, Me11 & 13, M/F,                  Hong Kong
The Peninsula Hotel Shopping Arcade,        Phone: +852.2363.8882
Tsim Sha Tsui, Kowloon,                     Fax: +8522765.7516
Hong Kong                                   Email: mailnet@continental.com.hk
Phone: +852.2366.6561                       Web: http://www.continental.com.hk
Fax: 852.2721.0415
Email: ise@hknet.com                        EMPEROR WATCH & JEWELLERY (HK) CO
                                            LTD
                                            25/F, Emperor Group Centre,
                                            288 Hennessy Road, Wan Chai,
                                            Hong Kong



70                                         Consulate General of India, Hong Kong
EXPORTING PEARLS, GEMS AND JEWELLERY TO HONG KONG




Phone: +852.2522.2918                     2 Sung Ping Street, Hunghom, Kowloon,
Fax: +852.2891.6286                       Hong Kong
                                          Phone: +852.2320.1788
NUANCE-WATSON (HK) LTD                    Fax: +852.2356.9088
PARTNERSHIP                               Email: admin@wfgold.com
Suite 601-604, One Citygate,              Web: www.hkenterprise.com/wingfung
20 Tat Tung Road, Tung Chung,
Hong Kong                                 L S COLLECTION HONG KONG LTD
Phone: +852.2870.6777                     Unit D, 4/F, Garment Centre, 576-586
Fax: +852.2555.8848                       Castle Peak Road, Cheung Sha Wan,
                                          Kowloon, Hong Kong
LVMH ASIA PACIFIC LTD                     Phone: +852.2528.9303
34/F, Dorset House, 979 King's Road,      Fax: +852.2865.0909
Taikoo Place, Quarry Bay, Hong Kong       Email: lschk@hkstar.com
Phone: +852.2968.9288
Fax: +852.2968.9222                       DICKSON CONCEPTS (INTERNATIONAL)
Email: lvmhap@lvmh.fr                     LTD
Web: http://www.lvmh.fr                   4/F, East Ocean Centre, 98 Granville Road,
                                          Tsim Sha Tsui East, Kowloon, Hong Kong
CHARLOTTE HORSTMANN & GERALD              Phone: +852.2311.3888
GODFREY LTD                               Fax: +852.2311.3323
Room 042, Marine Deck, Ocean Terminal,
Tsim Sha Tsui, Kowloon, Hong Kong         IMAGINEX MANAGEMENT CO LTD
Phone: +852.2465.8176                     Address: Suite 2801-7, Natwest Tower,
Fax: +852.2730.9412                       Times Square, 1 Matheson Street, Causeway
                                          Bay, Hong Kong
SHIATOS LTD                               Phone: +852.2730.1122
4/F, HK Diamond Exchange Building,        Fax: +852.2376.1729
8-10 Duddell Street, Central, Hong Kong   Email: thomson-cheng@imaginex.com.hk
Phone: +852.2521.2383
Fax: +852.2845.0271                       DICKSON CONCEPTS (WHOLESALE) LTD
Email: shiamas@shiamas.com.hk             4/F, East Ocean Centre, 98 Granville Road,
                                          Tsim Sha Tsui East, Kowloon,
HANG FUNG GOLD TECHNOLOGY LTD             Hong Kong
2/F, Phase 2, Kaiser Estate,              Phone: +852.2311.3888
28 Man Lok Street, Hunghom, Kowloon,      Fax: +852.2311.3323
Hong Kong
Phone: +852.2766.3688                     MAN SANG JEWELLERY CO LTD
Fax: +852.2362.3034                       21/F, Railway Plaza, 39 Chatham Road
Email: enquiry@hangfung.com               South, Tsim Sha Tsui, Kowloon,
Web: http://www.hangfung.com              Hong Kong
                                          Phone: +852.2317.5300
THE WORLD JEWELLERY CO LTD                Fax: +852.2317.5243
6/F, 625 King's Road, North Point,        Email: pearl@man-sang.com
Hong Kong                                 Web: http://www.man-sang.com
Phone: +852.2590.3333
Fax: +852.2590.3456                       ALFRED DUNHILL ASIA PACIFIC LTD
Email: twji@theworld.com.hk               19/F Natwest Tower, Times Square, 1
Web: http://www.theworld.com.hk           Matheson Street, Causeway Bay,
                                          Hong Kong
GUCCI GROUP (HONG KONG) LTD               Phone: +852.2599.6300
Room 4001, 40/F, The Lee Gardens,         Fax: +852.2506.1251
33 Hysan Avenue, Causeway Bay,
Hong Kong                                 BANGKOK GEM HOUSE (HK)
Phone: +852.2839.6900                     Unit 4, 10/F Block B, Burlington House,
Fax: +852.2504.5913                       90-94C Nathan Road, Tsim Sha Tsui,
                                          Kowloon, Hong Kong
WING FUNG GOLD & JEWELLERY                Phone: +852.2799.9314
WHOLESALE LTD
                                          Fax +852.2730.3115
Room 601-604, 6/F, Hilder Centre,
                                          Email: wavoo@hknet.com



Consulate General of India, Hong Kong                                               71
                    EXPORTING PEARLS, GEMS AND JEWELLERY TO HONG KONG




Web: http://www.gemkey.com/gemhouse           Phone: +852.2367.6747
                                              Fax: +852.2367.2798
THE UNITED TRADING CORPORATION
Address: Flat B, 4/F, Bo Yip Building, 6      PANIV DIAM
Ashley Road, Tsim Sha Tsui, Kowloon,          P O Box 96202, Tsim Sha Tsui, Kowloon,
Hong Kong                                     Hong Kong
Phone: +852.2376.0530                         Phone: +852.2721.6861
Fax: +852.2376.3910                           Fax: +852.2721.5369
Email: yuteecee@netvigator.com                Email: semil@homail.com

RIGHT GEMS SUPPLIER                           CROWN GEMS
Flat A, 16/F, Alpha House,                    P O Box 92129, Tsim Sha Tsui, Kowloon,
27-33 Nathan Road, Tsim Sha Tsui,             Hong Kong
Kowloon, Hong Kong                            Phone: +852.2311.5588
Phone: +852.2311.0055                         Fax: +852.2724.1427
Fax: +852.2721.1655                           Email: rishabhhk@yahoo.com.hk
Email: sghhk@ajdeen.corp.com.hk
                                              INDO SINO CO
FANCY GEMS                                    Flat D, 10/F, Dorfu Court, 5-6 Hau Fook
Flat 11A, 10/F, Haiphong Mansion, 99-101      Street, Tsim Sha Tsui, Kowloon,
Nathan Road, Tsim Sha Tsui, Kowloon,          Hong Kong
Hong Kong                                     Phone: +852.2724.8289
Phone: +852.2316.7560                         Fax: +852.2724.8735
Fax: +852.2316.7991                           Email: indosino@netvigator.com
Email: fancygems@hotmail.com
                                              ORIENTAL GEMS COMPANY
H T B TRADING COMPANY                         Unit 21, 10/F, Block B,
1/F, 2 Earl Street, Kowloon City, Kowloon,    Focal Industrial Centre, 21 Man Lok Street,
Hong Kong                                     Hunghom, Kowloon,
Phone: +852.2338.8711                         Hong Kong
Fax: +852.2339.0601                           Phone: +852.2356.1186
                                              Fax: +852.2954.2625
ORO EIGHTEEN JEWELLERY CO LTD
Flat A, 3/F, Wai Hang Building, 308 Canton    COME-MORE COMPANY
Road, Tsim Sha Tsui, Kowloon,                 Room 2A, Pine Hill Mansion,
Hong Kong                                     128 Austin Road, Tsim Sha Tsui, Kowloon,
Phone: +852.2735.0770                         Hong Kong
Fax: +852.2377.9867                           Phone: +852.2314.7280
                                              Fax: +852.2314.1005
ASIA JEWELLERY MFG CO O/B ORO                 Email: e12862@netvigator.com
EIGHTEEN JEWELLERY CO LTD
Flat A, 3/F, Wai Hang Building, 308 Carton    MAGFREY CO LTD
Road, Tsim Sha Tsui, Kowloon,                 Room 1111, 11/F, Peninsula Square,
Hong Kong                                     18 Sung On Street, Hung Hom,
Phone: +852.2735.0770                         Kowloon, Hong Kong
Fax: +852.2377.9867                           Phone: +852.2524.2175
                                              Fax: +852.2877.2118
TAI WOO PEARL (HK) CO LTD                     Email: magfrey@netvigator.com
Flat B, 13/F, China Insurance Building, 48
Cameron Road, Tsim Sha Tsui, Kowloon,         PO FUNG JEWELLERY
Hong Kong                                     Room 803, 8/F,
Phone: +852.2311.3369                         Wah Ying Cheong Central Building,
Fax: +852.2722.7498                           158-164 Queen's Road Central, Central,
Email: info@taiwoopearl.com                   Hong Kong
Web: http://www.taiwoopearl.com               Phone: +852.2545.8289
                                              Fax: +852.2544.1971
H.K. GEMS & DIAMONDS
Block D, 11/F, Comfort Building,              CHINESE ARTS & CRAFTS (HK) LTD
86-88 Nathan Road, Tsim Sha Tsui,             7/F, China Resources Building,
Kowloon, Hong Kong



72                                           Consulate General of India, Hong Kong
EXPORTING PEARLS, GEMS AND JEWELLERY TO HONG KONG




26 Harbour Road, Wan Chai, Hong Kong     8 On Ping Street, Siu Lek Yuen, Sha Tin,
Phone: +852.2839.1888                    New Territories, Hong Kong
Fax: +852.2577.5063                      Phone: +852.2316.6800
Email: retail@crcretail.com              Fax: +852.2635.6060
Web: http://www.crcretail.com            Web: http://www.gaygiano.com

CHRISTIAN DIOR FAR EAST LTD              SHIAMAS LTD
20/F, Dorset House, 979 King's Road,     4/F, Hong Kong Diamond Exchange
Taikoo Place, Quarry Bay, Hong Kong      Building,
Phone: +852.2968.9668                     8-10 Duddell Street, Central,
Fax: +852.2968.1580                      Hong Kong
E-mail: nchan@christiandior.fr           Phone: +852.2523.3178
                                         Fax: +852.2845.0268
BURBERRY ASIA LTD                        Email: shiamas@shiamas.com.hk
Room 1101-2, Tower 2, Harbour Centre,
8 Hok Cheung Street, Hunghom, Kowloon,   G R I HONG KONG LTD
Hong Kong                                27/F Tower A, Regent Centre,
Phone: +852.2736.0388                    63 Wo Yi Hop Road, Kwai Chung, New
Fax: +852.2736.2339                      Territories, Hong Kong
                                         Phone: +852.2489.8282
COZZI INTERNATIONAL LTD                  Fax: +852.2420.2224
Room 911-917, Tower A, New Mandarin      Email: kenneth-chan@griasia.com
Plaza, 14 Science Museum Road,
Tsim Sha Tsui, Kowloon,                  TOPPY CO (HK) LTD
Hong Kong                                11/F, Toppy Tower, 659 Castle Peak Road,
Phone: +852.2301.3388                    Kwai Chung, New Territories,
Fax: +852.2301.3099                      Hong Kong
Email: henrykhcheung@cozzi.com           Phone: +852.2489.8559
                                         Fax: +852.2484.1219
KWOK HANG HOLDINGS LTD                   Email: winniecheng@toppy.com.hk
Room 1001-1002, Tower 2,                 Web: http://www.colour18.com
Harbour Centre, 8 Hok Cheung Street,
Hunghom, Kowloon,                        ERRAGAMO RETAIL HK LTD
Hong Kong                                Suite 3312-3314, Shell Tower, Times Square,
Phone: +852.2735.0131                    1 Matheson Street, Causeway Bay,
Fax: +852.2735.4272                      Hong Kong
Email: khhl@netvigator.com               Phone: +852.2737.3028
                                         Fax: +852.2377.1716
GAY GIANO INTERNATIONAL GROUP LTD        Email: ferragamo@imaginex.com.hk
Unit 701 & 702, Grandtech Centre,


Key Contacts

Mainland China Contacts

EMBASSY OF INDIA                         Phone: +86.10.6801.3344 (Operator),
Commercial Wing                          +86.10.6803.4830
1, Ritan Dong Lu, Beijing – 100 600      Fax: +86.10.6803.0747, 6801.1370
Phone: +86.10.6532.3291
Fax: +86.10.6532.4684                    CHINA NATIONAL ARTS AND CRAFTS
Email: ssc@indianembassy.org.cn          CORP.
Web: http://www.indianembassy.org.cn     No. 101 Fuxingmen Nei Dajie,
                                         Beijing 100031
CHINA COUNCIL FOR PROMOTION OF           Phone +86.10.6601.2255 Ext 3817/3820
INTERNATIONAL TRADE                      Fax: +86.10.6603.3964
No.1 Fuxingmenwai Street
Beijing-100860, P.R. China




Consulate General of India, Hong Kong                                               73
                     EXPORTING PEARLS, GEMS AND JEWELLERY TO HONG KONG




GEMMOLOGICAL ASSOCIATION OF CHINA          Fax: +86.755.335.2739, 322.8663
EXHIBITION CO. LTD                         Email: szwa@chinawatchnet.com
Room No: 602 A5 West Yuetan Street,
Xicheng dist., Beijing: 100045             MUNICH TRADE FAIRS CONSULTANCY
Phone: +86.10.6804.0679                    (SHANGHAI) CO., LTD
Fax: +86.10.6804.5040                      Phone: +86.21.6886.3366 Ext. 804
                                           Fax: +86.21.6886.2267
SHENZHEN CLOCKS, WATCHES &                 Email: zhang,haiyan@mi-shanghai.com
ACCESSORY MARKET CO., LTD
Phone: +86.755.323.9797, 334.6211



Key Contacts

India Contacts

Government ministries and agencies
Industry associations
General trade associations


                                              .Industry Associations.
Government Ministries and Agencies.
                                              THE GEM & JEWELLERY EXPORT
DEPARTMENT OF COMMERCE                        PROMOTION COUNCIL
Joint Secretary (FT-NEA)                      Diamond Plaza 5th Floor,
Udyog Bhavan                                  391-A Dr. Dadasaheb Bhadkamkar
New Delhi 110011                              Marg,
India                                         Mumbai 400004
Phone: +91.11.2301.5215                       Phone: +91.22.2382.1801 / 1806 /
Fax: +91.11.2301.4418                         23806916
                                              Fax: +91.22.2380.8752 / 2380.4958
MINISTRY OF FINANCE                           Email: gjepc@vsnl.com
Department of Economic Affairs                Exhibition Cell: gjepc@bol.net.in
Room No. 66-B, North Block                    Web: http://www.gjepc.org
New Delhi 110011
Phone: +91.11.2301.1247                       REGIONAL OFFICES
Fax: +91.11.2301.2477 / 2379.3422
                                              DELHI
INDIA TRADE PROMOTION ORGANISATION            F-17-18, Flatted Factories Complex,
Pragati Bhavan, Pragati Maidan                Jhandewalan,
New Delhi 110001                              New Delhi - 110055.
Phone: +91.11.2337.1540 / 2337.1836           Phone: +91.11.2361.4197 / 2351.5395
Fax: +91.11.2331.8142 / 2331.7896             Fax: +91.11.2367.5274
Email: itpo@giasd101.vsnl.net.in              Email: gjepcnr@nda.vsnl.net.in
Web: http://www.indiatradepromotion.org
                                              JAIPUR
DTE. GENERAL OF FOREIGN TRADE                 Rajasthan Chamber Bhavan, 3rd Floor
Udyog Bhavan                                  Mirza Ismail Road,
H-Wing, Gate No. 2                            Jaipur - 302 001.
New Delhi 110011                              Phone: +91.141.2568.029/2565.731
Phone: +91.11.2301.1777                       Fax: +91.141.2567.921
Fax: +91.11.2301.4436                         Email: gjepcjp_jp1@sancharnet.in
Email: dgft@ub.nic.in
Web: http://dgft.delhi.nic.in                 CHENNAI
                                              Ankur Plaza, 3rd Floor, 52 G. N. Chetty
                                              Road
                                              T. Nagar, Chennai - 600 017
                                              Phone: +91.44.28276188



74                                        Consulate General of India, Hong Kong
EXPORTING PEARLS, GEMS AND JEWELLERY TO HONG KONG




Fax: +91.44.2822.6686                            INDIAN DIAMOND INSTITUTE, SURAT
Email: gjepcsr@vsnl.com                          Katargam, GIDC
                                                 Sumul Dairy Road, Surat – 395 008
KOLKATA                                          Phone: +91.261.7480.809 / 7481.822
Unit No. 1F, 1st Floor 4, Ho-chi-Minh Sarani,    Fax: +91.261.7481.110
Kolkata - 700071                                 Email: idisurat@vsnl.com
Phone: +91.33.2282.3630                          Web:
Fax: +91.33.2282.3629                            http://www.diamondinstitute.ac.in
Email: gjepcer@vsnl.com
                                                 .General Trade Organisations.
SURAT
626-628 Belgium Tower, 6th Floor                 ASSOCIATED CHAMBERS OF
                                                 COMMERCE AND INDUSTRY OF INDIA
Ring Road, Surat - 395003                        147 B, Gautam Nagar
Phone: +91.261.7435.008                          Gulmohar Enclave
Email: gjepc_gr@satyam.net.in                    New Delhi 110049
                                                 Phone: +91.11.2651.2477-79
PROJECT OFFICES
                                                 Fax: +91.11.2651.2154
JEWELLERY PRODUCT DEVELOPMENT                    Email: assocham@sansad.nic.in
CENTRE, MUMBAI                                   Web: http://www.assocham.org
D-15, Commerce Centre, Tardeo,
Mumbai - 400034                                  CONFEDERATION OF INDIAN
Phone: +91.22.2492.1527                          INDUSTRY (CII)
Fax: +91.22.2496.6498                            23 Institutional Area,
Email: jpdcmumbai@vsnl.com                       Lodi Road
                                                 New Delhi 110003
INDIAN GEMMOLOGICAL INSTITUTE, DELHI             Phone: +91.11.2462.9994
F 32-33 Flatted Factories Complex, Jhandewalan   Fax: +91.11.2463.3168 / 2462.6149
Rani Jhansi Road,                                Email: ciico@ciionline.org
New Delhi -110055.                               Web: http://www.ciionline.org
Phone: +91.11.2367.9732
Fax: +91.11.2367.5274                            FEDERATION OF INDIAN CHAMBERS
                                                 AND COMMERCE OF INDUSTRY
Email: gjepcnr@nda.vsnl.net.in
                                                 Federation House
JEWELLERY PRODUCT DEVELOPMENT                    Tansen Marg
CENTRE, DELHI                                    New Delhi 110001
F Block, Flatted Factories Complex,              Phone: +91.11.2373.8760 (11Lines)
Jhandewalan,                                     Fax: +91.11.2332.0717 / 2312.1504
New Delhi -110055.                               Email: ficci@ficci.com
Phone: +91.11.2353.9063                          Web: http://www.ficci.com
Fax: +91.11.2355 1186
Email: jpdc@mantraonline.com                     CONFEDERATION OF 100% EXPORT
                                                 UNITS
GEM TESTING LABORATORY, JAIPUR                   PHD House, 4th Floor,
Rajasthan Chamber Bhavan,                        Opp. Asian Games Village
Mirza Ismail Road                                New Delhi 110016
Jaipur - 302001.                                 Phone: +91.11.2683 0743
Phone: +91.141.2568.221
Email: gtljpr_jp1@sancharnet.in                  FEDERATION OF INDIAN EXPORTS
                                                 ORGANISATION
                                                 PHD House (3rd floor)
JEWELLERY PRODUCT DEVELOPMENT
CENTRE, JAIPUR                                   Opp Asian Games Village
Rajasthan Chamber Bhavan, 3rd Floor              New Delhi 110016
Mirza Ismail Road,                               Phone: +91.11.2685.1310 / 2685.1312
Jaipur -302001                                   Fax: +91.11.2686.3087
Phone: +91.141.2570.439                          Email: fieo@nda.vsnl.net.in
Fax: +91.141.2567.921                            Web: http://www.fieo.com
Email: gjepcjp_jp1@sancharnet.in




Consulate General of India, Hong Kong                                                 75
                 EXPORTING PEARLS, GEMS AND JEWELLERY TO HONG KONG




8.2 Online Resources

In addition to the website address provided in the previous pages, a select list of
websites for further information is provided below:

Consulate General of India, Hong Kong
     http://www.indianconsulate.org.hk
Embassy of India, Beijing
    http://www.indianembassy.org.cn
Hong Kong Special Administrative Region Government
     http://www.info.gov.hk/eindex.htm
Indian Chamber of Commerce Hong Kong
      http://wsww.icchk.org.hk
Hong Kong Jewellery Manufacturers’ Association
     http://www.jewelry.org.hk
Diamond Federation of Hong Kong, China Ltd
    http://www.diamondfederationhk.com
Hong Kong Jewellery Industry Technology Centre
     http://www.hkpc.org/hkjitc
Hong Kong Jewellery & Jade Manufacturers Association
     http://www.jewellery-hk.org
Industry Vertical: Timepieces, Jewellery and Optical Goods
     http://timepieces.tdctrade.com
Hong Kong General Chamber of Commerce
     http://www.chamber.org.hk
Chinese General Chamber of Commerce
     http://www.cgcc.org.hk
Chinese Manufacturers’ Association
     http://www.cma.org.hk
Hong Kong Trade Development Council
     http://www.tdctrade.com
South China Morning Post
     http://www.scmp.com
Sea cargo tracking facility
      http://www.schednet.com/tdc/seatrak.htm
Air cargo tracking facility
      http://www.schednet.com/tdc/seatrak.htm
Real time flight info for Hong Kong airport
       http://www.hkairport.com/eng/flight_info/FlightInfoFrame.jsp




76                                          Consulate General of India, Hong Kong
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Consulate General of India, Hong Kong                                                                                    77
                                              Reader Evaluation
   Exporting Pearls, Gems and Jewellery to Hong Kong – A Guidebook

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