Idar-Oberstein is to become a customs-free zone, with forwarding agent Schenker and Brink’s taking over the newly-declared area that has been authorized by the German government, says E. Julius Petsch of E. Julius Petsch.

            “It is so brand new,” Petsch said in a recent interview. “All of Idar-Oberstein worked for three years, and this is for us a great achievement,” Schenker and Brink’s work from the bourse building, and all merchandise entering Idar-Oberstein are duty-free. The merchandise then are transferred under customs bond to the free zone where they can be viewed, stored, re-shipped or divided.

            “Everybody may ship his own gemstones to the zone, where the goods will be held, until further instructions given by him,” Petsch said. Once the goods are sold in West Germany, the buyer then must pay for all clearing procedures, including the value-added tax.

            “We expect to have advantages with these arrangements. Besides a cutting center, Idar-Oberstein also will be a trading center for Europe,” he added.

            Petsch said details of fees and regulations were to be finalized by the end of October, and urged traders to consider the zone’s attractions. Maintaining a small office in the bourse would only cost some 300 U.S. dollars a month, Petsch said.  Interested persons can contact the Federal Association of the Diamond and Gemstone Industry in Idar-Oberstein at tel. no. 067814821 or 067814822 or by telefax no. 678141269.

            In the interview, Petsch, also head of the International Colored Gemstone Association (ICA), said he will not extend his two-year presidency term, which expires next year, saying he would like to spend more time with his family. As president, 51-year-old Petsch has traveled extensively, talking to gemstone associations in Zambia, Kenya, Bombay, Japan, Tucson, Thailand among others and in various languages which include French and Portuguese.

            He also said his successor could be Asian. “We should be thinking more generous. Why not Thailand, or other Asians? Do not forget that half of our members are Asians, and they are good supporters of ICA.”

            Petsch also expressed strong reservations about the growing number of jewelry trade buildings that are locked in competition in Thailand. He commented: “If all the projects come true, then there is too much to offer, too much space, too too much.” But if one or two came into being, then that would be all right, he added, but noted that traders in the ultra-modern buildings would surely have to pay relatively high rents.

            “One can equally sell 10 million dollars in a booth,” said Petsch, who in 1965 in Bangkok did business in tiny shophouses and sat barefoot on the floor. “We did business when we had money. Bargaining was done with some dignity,” he recalled.