Selling Rough Diamonds in South Africa: A 7 Step Comprehensive Guide

Selling Rough Diamonds, If you are looking to sell rough diamonds in South Africa, it is important to understand the process and regulations surrounding the diamond trade. Selling rough diamonds locally requires compliance with certain guidelines set by the government and industry authorities.

Here is a step-by-step guide to help you navigate through the process:

1. License Requirements: In order to sell rough diamonds, you must hold a valid license as a diamond dealer or diamond beneficiator. This ensures that you are authorized to engage in diamond trading activities and are knowledgeable about the industry’s practices and regulations.
2. Local Sales : You can only sell to other licenced companies or holders of a licence or permit and only at a licenced premisis
3. Export Selling Preference: According to the regulations, if you wish to export rough diamonds, you must first offer them to the local market. The Diamond Exchange and Export Centre (DEEC) serves as the primary platform at the SADPMR offices.
4. Reserve Price: When offering your rough diamonds locally, you can set a reserve price, indicating the minimum price at which you are willing to sell. If your diamonds do not sell within four days at the reserve price, you can proceed with exporting them.
5. Export Duties: If you decide to export the rough diamonds after the local offering, a 5% duty will apply to the reserve price. This duty helps protect the local diamond market and encourage trading within the country.
6. Funds Repatriation: When you complete the export, the funds from the sale need to be repatriated back to South Africa within 90 days. This process ensures that the monetary gains from diamond sales remain within the country’s economy.
7. Reserve Bank Form: To comply with the repatriation requirement, you must complete a Reserve Bank form. This form provides the necessary information to track the funds and demonstrates your adherence to the regulations.