Thai Govt Temporarily Lifting 20% Tax on Imported Gems and Jewelry
July 01, 13
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Foreign exhibitors will be allowed to bring in and sell gems and jewelry from other countries duty-free, while local exhibitors can reduce their selling prices after cutting down on imported parts and products’ costs.
“We are privileged to have the government working alongside us so directly,” said Somchai Phornchindarak, President of the Thai Gem and Jewelry Traders Association (TGJTA) and Chairman of the Gems, Jewelry and Precious Metal Confederation of Thailand. He said the government decision followed strong lobbying by the TGJTA.
The concession has been granted for a temporary period of 15 days before and after the show. Products covered include pearls, precious stones and metals, imitation jewelry and coins – all categories that fall under the International Trade Commission (ITC)’s Harmonized System Code, Chapter 71.
The import duty-free incentive applies only to exhibitors endorsed by the TGJTA, while the regular 7 percent Value Added Tax still applies to all exhibitors, local and foreign.
There were more than 30,000 visitors to the last Bangkok Gems and Jewelry Fair in February who came from more than 130 countries. The bi-annual event is regarded as the world’s fifth and Asia’s second-largest trade show in the gems and jewelry market.
The show also offers a Zero VAT Pavilion, where buyers are exempted from paying the 7 percent VAT imposed on rough gems and raw materials imported into Thailand for manufacturing.
The February event saw the introduction of a Business Matching Service – a scheme to helps foreign buyers identify, locate and communicate with exhibitors before the fair starts. Customers are assisted by staff members of the fair to view suppliers’ profiles, see their latest products, and select those whom they wish to meet. The service is free of charge and conducted online. In return, sellers are able to learn about the buyers and prepare offers ahead of time.