Buyers select black pearls at a jewelry auction in Sanya, Hainan province. [Photo provided to chinadaily.com.cn]
A jewelry auction featuring Tahitian black pearls — the first event of its kind to use the Hainan Free Trade Port's zero-tariff policy for high-end pearls — was kicked off on Friday at the Heren Gold and Jewelry Industry Park in the Yazhou Bay Science and Technology City in Sanya, Hainan province.
The event was designed to implement the preferential policies of the FTP in the high-end consumer goods sector, aiming to establish the island as a new hub for jewelry trade and boost its role as an international tourism and consumption center.
Buyers select black pearls at a jewelry auction in Sanya, Hainan province. [Photo provided to chinadaily.com.cn]
Wei Lan, a buyer from Sanya, said she submitted a bid for a lot of pearls, attracted by their value. "It's a great deal whether as a gift or for personal use, much cheaper than buying from a mall," she said.
The three-day auction differed from traditional bonded display auctions by integrating trading and production. It featured four innovations: no required guarantee, streamlined customs oversight, no time limit for re-exporting unsold items, and the option for further processing.
Buyers select black pearls at a jewelry auction in Sanya, Hainan province. [Photo provided to chinadaily.com.cn]
Hainan Heren Pearl Co — which has qualifications for processing and value-added duty-free businesses and is a beneficiary of the zero-tariff policy — imported over 20,000 Tahitian black pearls from French Polynesia duty-free on Wednesday. The pearls are stored in a designated area under real-time supervision.
For successful bids where buyers choose immediate delivery, Heren Pearl will handle domestic sales declaration as general trade, paying applicable taxes like import VAT and consumption tax before delivery. If buyers opt for processing by Heren, the pearls will be worked on-site. After meeting the conditions for duty-free sale, based on over 30 percent added value after processing, they will be delivered to buyers upon leaving the island. Unsold items or items buyers choose to export will be re-exported.
[Photo provided to chinadaily.com.cn]
Yang Dan, deputy general manager of Hainan Heren Pearl Co, said the integrated model provides strong support for foreign trade and demonstrates how to leverage FTP policies for the high-end jewelry market. The first auction is expected to bring in about 4.825 million yuan ($0.7 million) worth of black pearls. The company plans to hold regular quarterly auctions, aiming to build a nationally recognized international pearl trading brand.
Huang Yong, chairman of Guangdong Gems & Jade Exchange, said the event highlights Hainan's policy advantages, tourism appeal, and pearl industry foundation. It also creates a platform for policy coordination and resource sharing between Guangdong and Hainan. Future plans include regular events, expanded product categories, building an integrated industry chain from import to sales, and exploring new models like bonded trade and e-commerce.
Buyers select black pearls at a jewelry auction in Sanya, Hainan province. [Photo provided to chinadaily.com.cn]
Yang said the company has established a diversified pearl import strategy, sourcing raw materials not only from Tahiti, but also from Japan, Myanmar, Vietnam, Indonesia, the Philippines, Australia, and other countries. In the future, while continuing to focus on pearls, Heren Pearl plans to gradually expand into other categories eligible for FTP policies, such as colored gemstones and jade. It will also scale up projects integrating pearls with cultural tourism.
Buyers select black pearls at a jewelry auction in Sanya, Hainan province. [Photo provided to chinadaily.com.cn]
Regarding overseas expansion, the company is in discussions with Vietnam on exporting pearl oyster breeding technology. Future plans include advancing economic and trade cooperation in areas such as pearl processing and further expanding service trade exports.
