The Ministry of Finance of the Russian Federation explained the principle of operation of the planned export duty on rough diamonds. The payment will be levied not on all exports, but on certain weight categories of stones, in order to encourage their processing within the country.
The new mechanism, which is currently being developed, involves the introduction of export customs duties for specific weight groups of diamonds. The duty will be paid by the exporter of raw materials at the declaration stage. The exact parameters, including the size of the bet and the boundaries of the weight categories, are still being agreed upon.
As the Ministry of Finance explained, the duty will affect those diamonds, the processing of which at Russian enterprises is considered economically feasible. The department expects that with the development of domestic cutting, the problem of non-competitiveness in working with small stones will be resolved, and conditions for the industry will become more balanced.
The initiative is aimed at supporting the Russian cutting industry. Currently, about 90% of all diamonds in the world are processed in India, while in the Russian Federation less than 5% of mined stones are cut. The Ministry of Finance notes that the high concentration of production in one country creates risks for the global market and may increase the negative consequences in the event of a drop in demand.
The introduction of an export duty will become a tool for the redistribution of raw materials in favor of Russian cutting enterprises. This is part of the full cycle development strategy diamond industry within the country and reducing dependence on foreign processors.
Source: Kommersant
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