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Jewelry operators in
the dark about service trade pact
FAIR PRACTICES: An industry expert said local
jewelers are not afraid of competition and only want a level playing field,
which is difficult given the difference in trading rules
By Lu Kuang-cheng, Kao Chia-ho and Jason Pan / Staff reporters,
with staff writer
Jewelry and silverware retailers are distressed over the confusion about whether
their industry is to be opened up for Chinese investment and competition under
the cross-strait service trade agreement.
Attempts to get a definitive answer from the government about the issue have
failed, proprietors say.
Shih Wen-hsin (¥Û¤å«H), convener of the Taipei Jewelers¡¦ Association, has weighed
in with the criticism.
¡§Nobody knows what¡¦s going on,¡¨ Shih said, referring to both business operators
and government officials.
¡§It¡¦s quite chaotic,¡¨ he said.
Shih said that jewelry and silverware shops are classified under the ¡§services
and channel sales¡¨ sector in Taiwan, and gold is open to retail and trading, but
it is a controlled commodity in China.
¡§Thus when Chinese proprietors come to Taiwan [under the trade agreement], they
do not have to pay customs duties. They can also operate gold and jewelry
businesses as sole proprietors,¡¨ he said.
¡§However, if Taiwanese proprietors were to go to China, they will have to form a
partnership with local companies and pay an import duty on gold of 17 percent,¡¨
he said.
Shih said there is a big difference between the Taiwanese and Chinese industry.
¡§We are not afraid of competition. The important issue is having a level playing
field,¡¨ Shih said.
¡§In Taiwan, gold is quoted for sale according to the day¡¦s international gold
price. Each of our association¡¦s members knows how to calculate the daily
international gold price, foreign currency exchange rates, then add in
transportation and insurance charges,¡¨ he said.
¡§A such, our members can explain to clients about costs and profit margins. [The
process] is transparent and fair,¡¨ he said.
However, it is very different in China, Shih said.
¡§They have ¡¥gold price monopolization.¡¦ China¡¦s gold and silverware proprietors
are joined together to monopolize and manipulate gold prices. The rights of
Chinese consumers have long been violated. Chinese proprietors have a bad
reputation in this sector,¡¨ he said.
¡§If we open up to Chinese investment and companies, it would lead to unfair
competition in Taiwan,¡¨ Shih said.
Officials at the Bureau of Foreign Trade had earlier said that gold and
silverware retailing is included in the cross-strait pact. However, they later
said that the Ministry of Economic Affairs¡¦ Department of Commerce and the
Investment Commission were in charge of negotiating on which business sectors
should be included in the agreement.
When contacted on Monday, Department of Commerce Deputy Chief Chen Mi-shun (³¯¯µ¶¶)
said he did not know, as his department was not in charge of jewelry and
silverware stores.
¡§We only provide services for business owners. We do not oversee their business
activities,¡¨ he said.
¡§Our department formulates policies on measures to combat money laundering. But
for reporting about money laundering, that is handled by the Money Laundering
Prevention Center at the Ministry of Justice Investigation Bureau, he said.
¡§Retailing and business activities are not regulated by one single government
agency,¡¨ he said.
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