Shanghai Diamond Exchange is the only diamond import and export trading platform in China. According to the relevant government policies and regulations, all the diamond import and export under the general trade pattern shall be handled and supervised by the Customs office stationed inside Shanghai Diamond Exchange. Shanghai Diamond Exchange implements an enclosed membership management system in alignment with the international practices. Only companies are eligible to apply to become members. As of June 30, 2013, Shanghai Diamond Exchange has 353 members, 70% of which are foreign-funded companies. Shanghai Diamond Exchange members are not only entitled to engage in diamond import and export business in China, but also to deal with the other members directly and enjoy preferential taxation policy. .
The process of applying to become a member is as follows:
1. Read the Membership Application Chapter.
2. Eligible companies fill in the application form and provide application materials required by the provisions.
3. Submit the completed application forms and materials to the Membership department of SDE.
4. Membership department will review the application materials and post the applicants’ information on the SDE’s official website for public notice with a period of 30 days after approving the correctness and completeness of the application materials.
5. Applicants will receive pre-qualification if no objection from the official members were received during the public notice period.
6. Membership department will notify the applicants to make payment of the entrance fee (US$20000, non-refundable) and annul fee for the first year (The normal annual fee is US$3000 per year. The first year’s annual fee will be calculated in terms of the number of months from the approval date to the end of the year.)
7. SDE shall notify the applicants to become the formal members in a written notice after receiving the above payment.
8. If the applicants fail to make payment within 6 month after receiving the notice of payment, Pre-qualification will be automatically canceled. The applicants whose pre-qualification were canceled shall start over once deciding to re-apply for SDE’s membership.