Import Pearls

[lqz]

Hi,

I'm a new member planning to start a business. Does anyone know if there are any issues with security checks at the airport if you bring in pearls for commercial use? I wonder if you can carry them as part of your own cabin luggage. I understand you have to declare them upon arrival.

In addition, how common is it for suppliers to be paid in cash? I don't think it's very safe to carry a lot of money around while travelling. Do they accept bank transfers or cards?

Any feedback is very much appreciated.

 

[Caitlin]

Hi and welcome! While you are waiting for answers here, there is an ongoing thread about traveling with pearls, which has some info you might find useful.
https://www.pearl-guide.com/forum/showthread.php?t=5698&p=89170#post89170

 

[pearlescence]

I've never had a problem with security, only weight!
It's cash at the big trade shows, or on account. same at their offices if they don't know you.

 

[Nerida]

I have done some buying at the offices doing a bank transfer at the time of purchase.... seems to be okay, but I guess they know me. Declaration on re-entry is dependent on your own government's customs laws - check before you leave home!

 

[lqz]

This is very helpful. Thanks a lot for all your comment.

 

[Katbran]

I am fairly new to buying but this is what I have found. Most sellers will either accept a bank transfer , Internet or TT , in either USD or HKD . But I ordered through emails. When I was at HK show I had lots of HKD only to discover that they all wanted USD ..at least the ones I talked to.. Now I buy thru emails.

The laws for importing are something that you need to research . And not sure what volume you are talking about... A suitcase full or 50 strands .. H

 

[lqz]

Thanks for this Katbran. I assume you know the sellers pretty well to order through emails. I guess for a start up business to place its first order, it could be risky to trust someone through emails.

 

[pearlescence]

Risky...it depends on what you are buying and how much you are buying?
Where are you lqz?

 

[jshepherd]

Thanks for this Katbran. I assume you know the sellers pretty well to order through emails. I guess for a start up business to place its first order, it could be risky to trust someone through emails.

It's always going to be risky and the deal will rarely be what you get in person. There isn't much way to negotiate when the seller could just as easily drop a grade. There is less risk when dealing with one of the larger players (Like Grace, Angeperle, etc.) as they have decent grading systems, but they are more expensive.

At the shows you really don't need to have cash. Most of the vendors take credit cards now, and it's a lot easier to have your goods shipped back to your home than carrying them. You can select the pearls, wrap them, sign the tape, take the invoice and send a wire. They can ship via FedEx or DHL and you pay a very small broker fee to the carrier. If you hand-carry, you need to have a broker meet you at the airport or at least have the entry paperwork waiting for you at customs. It's expensive and prone to error. This is assuming you are carrying into the USA.

 

[pearlescence]

Surprisingly, for the red-tape loving bureaucracy which is the UK these days, the hardest thing about hand carrying a bag full of pearls is finding a customs officer to declare them to, at least at Manchester airport. I now get complements from them on my immaculate paperwork and it really isn't hard - parting with the VAT then and there is ouch! The paperwork took me about half an hour waiting at the gate at hong kong

 

[jshepherd]

We don't have that luxury here. Even though we pay no tax on the import of loose pearls and temporary strands, we still have to have a broker complete all the necessary paperwork prior to landing. It's been a number of years since I've taken that route, but I recall it was something like $500 per entry.

 

[pearlescence]

The hardest part was sitting on the floor waiting for the customs bods to arrive from the other side of the airport (about half an hour) no chairs outside their little shop cubby hole place and it's very long flight

 

[lqz]

payment abroad

payment abroad

I'm wondering how you make payments to the suppliers. Many of the UK banks advise that online transfers will normally take around 3 to 5 working days to clear. And unfortunately it's quite difficult to withdraw large amount of cash abroad. So what advice would you give for buying directly from the pearl markets or pearl farms? In cases where only cash is accepted, what is the best option? Do you take travellers cheques with you?

Any feedback from you is highly appreciated.

 

[jshepherd]

Skip the checks. They won't be accepted. You won't be buying from any farms, you will be buying from processors and traders at the markets. In China, you really do need cash. Hong Kong you can get away with credit cards, but in China you need cash. If you are dealing with a larger company, you should be fine just wrapping the pearls and signing the tape and then wiring the funds. I've never had a company not send the product or switch it out before ... if you don't want to carry cash.

 

[lqz]

Thanks very much for your advice, Jeremy? Do the suppliers in China prefer cash in USD or RMB? How about places in Japan, Indonesia and the Philippines?

 

[jshepherd]

Cash is cash, so it really doesn't matter. They accept US dollars and RMB. I always use USD when I go. Then again, I don't carry much anymore. I usually just ship the pearls and then wire the money when I get home. This won't work for you if you don't know them well. Japan is very similar in that wire and cash work, credit cards usually don't. Skip Indonesia and the Philippines. There isn't much available to "show up for" in the South Sea game.

 

[pearlescence]

Most pearl commerce is done in USD

 

[jshepherd]

Most pearl commerce is done in USD

I disagree. It depends on the type of pearl for the most part. Most non-freshwater pearl commerce is done in Japanese yen and Euro. When the dollar became volatile a lot of auctions switched to only accepting Euro. South Sea producers nearly universally price their line sheets in Japanese yen and by momme.

 

[pearlescence]

Fair enough,,,I don't buy in Japan.
Bet they aren't quite so keen on euros now though!

 

[jshepherd]

It's not really in Japan, actually. The South Sea companies do most of their business out of Hong Kong, but still price everything in yen. It's because historically, everything went through Japan before it hit the world market. A huge percentage still does as the world's biggest pearl houses are there, and most South Sea pearls do go through maeshori, and they go through it in Japan.

It can be daunting pricing out lots that are priced in yen and by momme. Dividing the number of pearls by the momme weight tells you the average size of the lot. Then you check the current exchange rate to get the list price for the average size. It's not too bad with a graded, separated lot. But when the lots are mixed, it's really difficult.