Facets of Sri Lanka

How to buy stones and jewellery

Buying jewellery

Whether it is with diamonds, gems or pearls – or plain gold, silver or platinum can be an enjoyable but daunting task! Identifying, let alone valuing precious material, is no easy task even for the expert – and the best way for the consumer to be happy with his or her purchase is to be informed before the purchase.

Knowing your subject is important. For example, gold jewellery is with pure gold alloyed with another metal, such as copper, for strength (this gives the karatage of a piece and can be from 9-karat gold to 22-karat gold). Gold jewellery can be plated, or ‘filled’. In gemstones, carat means a weight measurement of a stone

In making a jewellery purchase, a few tips to remember are:

1. Buy from a trusted jeweller or one who has been recommended.

Ask around and get recommendations, ask friends for an introduction to a jeweller that they are happy with. If this is not possible, check on the jeweller through a government certifying body or some other authorising authority who has certified the jeweller.

A good jeweller will be clear and transparent in his explanation of the piece and will guarantee that the product is what he/she says it is. Also, the right jeweller will be there when the piece needs to be cleaned, restrung, or remounted.

Find out if the jeweller provides other services (such as assaying and hallmarking) and ask what their return or trade-up policy is. Finally, ask if the jeweller affiliated with one of the jewellery trade organizations and also, if that association requires a code of conduct for its members.

2. Value for money

Ask around and window shop before you buy – do not be misled by huge discounts, which can be only a gimmick to attract people into the shop. It is important to compare jewellery prices before you buy. The lowest price is not always the best value; diamonds and coloured stones vary greatly in quality and price. Although the price of diamonds is relatively standardised to size and quality, coloured gemstones are not and if you are making a major purchase, finding out the correct value of the piece is important.

The most accurate method of establishing value is through an appraisal from an independent gemmologist preferably certified by an authorized body. Prices can vary greatly on similar items from vendor to vendor. So, lacking an independent appraisal, you should at least shop around and compare prices on items of similar quality.

Gemstone and diamond quality is a major factor in calculating the accurate value of a piece of jewellery. Get a detailed receipt giving materials, weights and number of stones, sizes and quality. Also get a money back guarantee if returned within a reasonable period so that you can have the jewellery appraised by an independent appraiser.

3. Look for the registered trademark and quality mark

Whenever possible, look for quality marks such as hallmarks (which state the karatage of gold in the piece) as well certification for the stones.

There are also quality marks for silver and platinum – make sure your jeweller either stamps his jewellery with a quality mark or has it assayed and hallmarked by a central authority.

4. Get it in writing

When buying fine jewellery, ask the jeweller to write a complete description on your receipt. For gold jewellery, ask for the karatage; for diamonds, the cut, colour, clarity, and carat weight (the weight of the centre stone and total carat weight if there are side stones); for coloured stones, ask for a description of overall colour and carat weight and if the stone is of natural origin or has been treated in any way. That information should be included on the bill of sale.

Export Procedure for Items Purchased in Sri Lanka

A foreign buyer can export gemstones in two ways:

1) Personally hand carry the gem stones or jewellery purchased

The buyer will have to show proof that he has brought in or remitted the required funds to purchase the items. The gemstones or jewellery can be personally hand carried by the buyer and should be declared at airport customs on departure. The buyer will have to present to customs all receipts for the purchased items. There is no export duty to be paid.

OR:

2) Seal the purchased gemstones or jewellery at the Sri Lanka Gem Corporation and freight goods via a high value courier company such as Malca-Amith or Brinks

Export procedure for foreigners:

(a) Commercial invoice should be prepared and handed over by the shipper to the agent along with 10 copies manually signed.

(b) Customer should obtain a temporary Tax Identification Number (TIN number) and V.A.T. number and register the same at the Customs department.

(c) Goods have to be sealed at the Gem and Jewellery exchange – in Colombo or at the Katunayake Airport. A service charge of approximately 0.5% &nbspof the invoice value will be applied.

(d) It is not necessary for foreigners to have a Gem Dealer license.

(e) If the customer obtains the temporary TIN number and V.A.T. number, all other procedures can be handled by the Courier Company for a standard fee.