Israel’s diamond exports to Thailand increased 34 percent, to nearly US$51 million during the past year. It is in the best interests of both countries that Thailand streamline its customs procedures to allow for even faster expansion, said an Israeli diamond freight company and a trade official.
In spite of massive Customs Department jam ups, Malca-Amit (Thailand) Ltd. Managed to import an estimated US$500 million worth of diamonds into Thailand last year.
A door-to-door gem and jewelry freight handler, Malca-Amit is based in Tel Aviv, but operates a worldwide network. The Thailand office opened three years ago to handle the growing business here.
It is difficult to estimate the number of diamonds flowing into Thailand, since official statistics are unreliable, said Ines Melian, managing director of Malca-Amit (Thailand).
“In 1988, the government statistics for diamond imports totaled less than what we alone carried,” she said. “At that time, we had just opened and didn’t have even ten percent of the market.”
The biggest problem in her business is the amount of paper work—“especially for goods imported by Thailand,” Ms. Melian said. “It is very complicated to clear customs here. It’s an art, really.”
Malca-Amit maintains an office at Bangkok’s Don Muang Airport. “Some of our staff lives there, really,” Ms. Melian said. “That helps a lot. We can clear a package in a day if the flight arrives early enough. But we never promise it. We do the best we can.”
Clients flying in from Tel-Aviv or Hong Kong—where there are no customs delays—are in for a shock when they arrive in Bangkok. “They land and say, ‘I want my parcel,’ and we say, ‘We can’t give it to you. It’s in the airport strong room,’” Ms. Melian said. “For finished jewelry manufactured here and coming back for repairs, it can take as long as a month to clear.”
In contrast, a diamond shipment leaving Israel clears customs within minutes. A specialized system for diamonds has been developed to ensure efficiency, said Tzafrir Anbar, director of the diamonds and precious stones administration of Israel’s Ministry of Industry and Trade.
The customs office for diamonds is located within the Israeli diamond bourse. “After a diamond is bought, it goes downstairs to customs. All the paperwork is done and from there, it goes straight to the delivery company and the airport,” Mr. Anbar explained.
The paperwork takes “five minutes normally,” he said. “If there’s some delay it may take 30 or 45 minutes at the most. We try to shorten the time as much as possible.”
A specialized system, allowing for rapid transmission, is critical to the diamond industry, Mr. Anbar said. “If you’re exporting beef or beer, you have regular shipments by the ton and you know when they will be arriving at the port. Diamonds are different. It’s a very precious cargo and it must be carefully guarded. We like to see as few stations as possible between the exporter and the importer. The more stations you have, the more chances for delays and losses.”
Israeli customs does everything it can to help a diamond shipment reach its destination within 24 hours, Mr. Anbar said. “Once a buyer buys a diamond or any precious stone, he wants to have it in his hands as soon as possible. He doesn’t want to wait for it, whether it rough for his factory or a polished stone for setting. Business shouldn’t have to wait.”
The Israeli government works closely with the private diamond industry. It is now working on establishing a free trade zone in the area of the bourses, a move which will make the import and export of diamonds even more efficient.
Mr. Anbar said it is in the interest of Israeli diamond merchants as well as those in Thailand, to see customs procedures streamlined in Thailand. “The fewer problems there are, the better for everyone. We would like to see a tight relationship between our two countries with as few problems as possible.”