The Luohu district government held a biweekly news conference on Oct. 21 introducing its reform on bonded supervision of the local jewelry industry.

According to a government announcement, Shenzhen Customs and Luohu jointly initiated a pilot reform in the district.

Officials of the General Administration of Customs, Shenzhen municipal government, and Shenzhen Customs, and Luohu officials, including Luohu Party chief Luo Yude and Luohu government head Liu Zhiyong, took part in the news conference.

Shuibei of Luohu is home to more than 9,000 jewelry enterprises and its annual business revenue is more than 120 billion yuan ($18 billion), accounting for 50% of the country's jewelry wholesale market.

Liu Zhiyong said the reforms will necessarily promote the development of Luohu's jewelry industry and that Luohu will give full support to the construction of the bonded service platform. The platform aims to create a better business environment for the industry and increase Shuibei's annual production value to the equivalent of 200 billion yuan.

Shenzhen Customs added that the reforms will push the jewelry industry's traditional import-export model toward a bonded logistics chain model. This will further concentrate the jewelry industry in Shenzhen so that transaction costs can be reduced.

The bonded service platform allows customers to communicate with jewelry enterprises and pay taxes, which can effectively reduce transaction risks and the possibility of fraud while simultaneously guaranteeing the quality of goods.

It is estimated that the total value of the jewelry showcased on the platform by the end of December will surpass 200 million yuan.

The bonded service platform will consist of five centers: the exhibition center; bonded goods identification center; bonded research, development, and design center; bonded processing center, and bonded financial service center, forming a complete jewelry trade industrial chain.

The platform will serve all jewelry enterprises in Shenzhen and create more than 50,000 jobs. Trading via the platform will also save two to three days of customs clearance time.

Yang Yuhui, general manager of the Shenzhen Jewelry Industry Service Company, said the platform's exhibition function has been welcomed across the industry as it now allows domestic enterprises to examine foreign goods and make transactions without the need to visit foreign countries.

Zhang Qiang, general manager of the Lanta Company, said that transaction costs account for over 60% of their company's working capital. The platform can effectively save costs, lower risks, and ensure the quality of goods.

Shenzhen Customs said the pilot reform is one of eight major reforms it plans to carry out and is of vital importance to stabilizing China's jewelry industrial chain and promote "dual circulation" of the market.

In the future, Shenzhen Customs will continue to work with the local government to explore B2C, C2M, cross-border e-commerce, and other kinds of innovative sales models. Finally, it will continuously improve its supervision and services, and optimize production, distribution, circulations, and consumption systems to attract more jewelry enterprises to Shenzhen.

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