When submitting the diamonds to Brokho the owner of the diamonds must attach a reasonable value to the parcel with their own manifest.
Brokho for insurance purposes will have a certified gemologist on call to receive the diamonds and manifest and give a value to the diamonds – this will be the value of the insurance cover and the rate will be calculated based on tis value taking into consideration the following principal criteria which can influence the purchase price of rough diamonds:
Where the transaction takes place?
Where is the location of the physical transference of the rough diamonds?
What is the method of payment?
Costs of buying rough diamonds?
The crystalline structure of rough diamonds. The most important part regarding buying or selling of rough diamonds, is to know the basic structures (crystals): stones, shapes, cleavages, macles, flats.
The good classification of the crystalline structure of rough diamonds is determining the calculation of the purchase price, indeed all crystalline shapes of diamonds do not have the same yield. The stone structure will yield approximately 50 percent of the finished diamond, the shapes structure will yield 45 percent, the cleavages structure will yield 35 percent, the macles structure will yield 28 percent and the flats structure will yield 25 percent of the finished diamond.
Diamond exporters must note that the highest of the three valuations (i.e. The exporter’s ‘value, the Government Diamond Valuer’s value and the Independent diamond valuer’s value) is the value that determines the export duty payable to Government.