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[SPEAKING CHINESE]
The basic purpose of SDE is to shortcut various diamond import
and export procedures and make trade more convenient.
Chinese law says diamonds imported from overseas
have to be traded through SDE, which
is the only legal place for diamond import and export set
up by the central government.
Several procedures must be completed for diamond trading
to take place.
Imported diamonds must be declared and sealed by customs
when shipped to China.
Or it will be considered illegal smuggling,
and the diamonds will be unsealed and inspected
and assessed by an SDE expert.
Secondly, taxes will be charged.
Diamond taxation policy is very favorable in China
because only a 4% value-added tax, VAT, will be charged.
In fact all goods imported into China, including diamond,
are charged a 17% VAT.
But 13% is later refunded, so the actual diamond VAT
charge is 4%-- a special rate.
After finishing all customs clearance,
the diamonds are admitted for trade with SDE members
or within the Chinese domestic market.
For rough diamonds, their Kimberley Process certificates
have to be inspected, which has been strictly
carried out in China.
Here I want to say that China has been selected
as the deputy chairman country of the Kimberley Process.
This means China will be the chairman country next year,
and one officer in the National Bureau of Quality Inspection
will take the position of chairman.
China has done well in carrying out the Kimberley Process
and earned a good reputation after
several international inspections.
Which means China does a good job of rough diamond
supervision, ensuring legal diamond importing.
At the same time, we set up a special department in SDE
for inspecting and registering the Kimberley Process
certificates with which rough can
be sold in the domestic market.
You can trade after finishing all of the above processes.
Of course if you are not a member of SDE,
can still trade in import diamonds
after authorizing an SDE member to process them for you.
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[SPEAKING CHINESE]
Young people are energetic and contribute a lot
to the Chinese diamond industry, as they make up
the main body of diamond consumers
and account for around 50% to 60% of the market.
Young people also make up a major percentage
of diamond industry workers.
For instance, 80% of workers in diamond manufacturing
are young.
In the retail market, most are young men
taking to sales as a career.
There's an even higher ratio in e-commerce,
which relates to their dynamic thinking.
For example, as I mentioned, at the Zbird headquarters
in Shanghai, the employees' average age is only about 24.
It's impossible that China would have no local jewelry design
originality in such a big market, which
has caught the attention of the Chinese government.
We hold a Shanghai Diamond Culture Festival
and issue university student jewelry design awards
every September and October, which
are considered the golden season.
Design and originality are the realm of young people,
and we really do look forward to a better
future for young designers.
We have successfully presented university student jewelry
design awards twice.
Those who attended the competitions are all
undergraduates and graduates.
Nominated pieces are encouraged and selected impartially.
DAC, as the host, is not engaged in the selection process.
The selection and assessment is made by experts and a scholar
from the industry.
Professor [INAUDIBLE] was our judge the last time.