The Thai government should do two things immediately, advises Rene J. Hodel, managing director of Schoeffel (Hong Kong) Ltd. First, end import duties on pearls, which now stands at 30 percent; and second, join the fold of other nations by allowing carnets to be used for temporary importation.

            “The Thai government surely has to reduce import duties on pearls to make it possible for companies to compete, and should allow carnet with immediate effect,” Hodel said in an interview in Hong Kong.

            “You don’t leave people with a choice, but to use other means and ways of importing pearls.”

            In March, Schoeffel expanded its pearl wholesale business to include Singapore, where the government was less “prohibitive” than Bangkok and were the German firm could better service markets in neighboring Indonesia, Malaysia and Brunei. The Association of Southeast Asian Nations groups Thailand, Singapore, Indonesia, Malaysia, the Philippines and Brunei.

            That “protectionist stand” makes it very difficult to promote pearls, Hodel added, despite a strong demand for better quality Akoya and South Sea pearls in Thailand.

            “I’m sure it will come, if people are more aware of pearls, and if they are properly promoted.”

            Thailand could become a major pearl jewelry source, a leading Bangkok dealer told JewelSiam in a separate interview. He said: “The import duties make it difficult to be competitive. The only people who benefit from the present arrangement are people who choose to bring in the pearls through special couriers. Certainly, there are costs and risks involved, and it’s no wonder there isn’t more of them on display.

            “There is no reason why Mabe pearls for instance should be cheaper abroad than in Thailand, even though there are pearl farms in the south of Thailand. The manufacturers are ready to incorporate pearls into their programs. Having pearl jewelry for export would be another added reason for buyers to visit Thailand.” said the dealer, who asked he not be named.

            Calling pearls the “most feminine of jewelry there is,” Hodel said Schoeffel (Hong Kong) Ltd. actively promotes pearls to end customers, with a spring and autumn presentation each year. This solo effort, which “benefits the pearl industry overall,” reflects the industry’s biggest problem: there is no organization like De Beers or the Central Selling Organisation which promotes the pearl as the pearl to end consumers, says Hodel.

            “If the manufacturers of pearls and importers could contribute proportionately to the promotion of pearls, then the pearl business would be good altogether.” Hodel said.