Sotheby’s will auction the diamond, which it says is “arguably the most significant pink diamond to ever appear at auction,” in June.
JA Joins Retailers Lobbying Against Import Tax
The proposed “Border Adjustment Tax” imposes a 20 percent tax on goods imported from overseas, be they raw or finished.
Washington, D.C.--Jewelers of America is joining the growing list of retailers and retail groups speaking out against the so-called Border Adjustment Tax, which would slap a 20 percent tax on goods imported from overseas.
Though not formally introduced in Congress yet, the Border Adjustment Tax, or BAT, is part of a comprehensive tax reform proposal drawn up by House Republicans.
Called the Tax Reform Task Force Blueprint, the plan would shift the emphasis on taxation in the United States from income to consumption, lowering taxes on individuals and corporations while increasing it on consumer goods.
BAT calls for a 20 percent tax on finished and raw goods and materials brought into the United States from abroad, from French wine to German cars, from Italian gold to Burmese rubies.
Proponents of BAT, including House Speaker Paul Ryan (R-Wis.), say it will raise $1.2 trillion dollars over 10 years and that its cost to retailers will be offset by a stronger dollar and corporate and individual tax cuts.
But individual retailers and retail groups, including Jewelers of America, are coming out against BAT because, they argue, it will increase the cost of products from overseas for retailers and, ultimately, consumers.
Tim Haake, managing director of Washington, D.C.-based Haake Fetzer, which works for the jewelry industry on behalf of Jewelers of America in Washington, said one tenet of House Republicans’ Blueprint is that it be revenue neutral, meaning that it must raise the same amount of revenue that is raised under the current tax system.

“That filled the hole that existed in the Tax Reform Blueprint plan. But the tax is going to fall on people who spend money for things,” Haake said.
BAT would be particularly detrimental to the jewelry industry, JA President and CEO David J. Bonaparte said, as it’s an industry that manufacturers the vast majority of goods overseas and is dependent upon consumers having extra disposable income.
Already working within tight margins, jewelers would have to pass along at least some of the 20 percent tax to their customers, customers who will have less money to spend on discretionary goods as they grapple with higher prices on essentials like clothing, food, cars and gas.
“My feeling is that jewelry would be adversely
Haake echoed that sentiment: “Jewelry is a totally discretionary expenditure.”
In addition to its lobbying efforts with Haake Fetzer, JA has joined Americans for Affordable Products, a group of businesses and trade associations that are lining up against BAT.
Others that have joined the group include the Fashion Jewelry and Accessories Trade Association, online retailer Gilt, Jewelry Television, LVMH, the National Retail Federation and Neiman Marcus.
JA also has updated its Legislative Action Center, where retailers and suppliers can go to contact their representatives in Congress to voice their opinion about BAT or other issues.
“We’ve already started to dig our heels in and actively fight this,” Bonaparte said.
Congressional Republicans have been working on serious tax reform proposals for about five years, but those proposals lay dormant until the election of a Republican president in Donald Trump and the party’s victories in both houses of Congress this past fall.

Chris Fetzer, Haake Fetzer’s managing director, said the House Financial Services Committee’s Monetary Policy and Trade Subcommittee is expected to hold a hearing on BAT in the coming weeks.
While the tax has support from some key House Republicans, including Ryan, House Majority Leader Kevin McCarthy (R-Calif.) and House Ways and Means Committee Chairman Kevin Brady (R-Texas), Haake said BAT faces a significant challenge from top Senate Republicans.
Finance Committee Chairman Orrin Hatch (R-Utah) has publicly raised questions about how the bill will impact both businesses and consumers.
And Senate Majority Whip John Cornyn (R-Texas) described BAT as being “on life support” as soon as last Friday, before Congress went on a week-long break.
The Latest

The retailer, recently acquired by Signet Jewelers, will lay off 119 employees in July.

The Swiss watchmaker introduced 17 new models at Watches & Wonders Geneva.

Distinguishing natural diamonds from laboratory-grown stones – now more available than ever – has been difficult for jewelers. Until now.

As part of the promotion, Smith will share his sales expertise during a 90-minute training session.


At Watches & Wonders, the Swiss brand unveiled a follow-up to last year’s Tonda PF GMT Rattrapante.

The “rêve” collection’s engagement rings and wedding bands are geared toward “sustainability minded customers.”

De Beers Institute of Diamonds provides the very best in diamond verification, education and diamond services.

A new word appears on the dial each day of the week.

Bensons Jewelers closed for good Feb. 24, impacted in part by the decline in foot traffic downtown since the onset of the pandemic.

Kolja Kiofsky has been with the crystal and jewelry company since 2010.

The Kruse GWS Auctions sale will include the replica “Taj Mahal” necklace Elizabeth Taylor made with Avon as well as a costume piece Marilyn Monroe wore.

Massimo Basei is moving up, while Chief Commercial Officer Martino Pessina is stepping down.

AGTA GemFair and the Denver Gem & Mineral Show also will have a presence on the show floor.

Sold by Christie’s Hong Kong, this masterwork of complications now holds the record for most expensive watch ever auctioned online.

The watch company expects first-quarter sales to fall as much as 15 percent due to inflation and tough comps.

Adam O’Grady, general manager of the Lightbox Lab, has taken on the new role and will report directly to Lightbox CEO Antoine Borde.

The watch marketplace gathered data from 1.3 million collectors, highlighting the most popular timepieces and exploring value appreciation.

Burgundy has opted not to exercise its option to buy the mining claims Gibb River Diamonds currently owns.

Patented and specialty cuts now can receive an 8X Proprietary Certificate, which can be customized to include a company’s brand and logo.

The organization said it will recognize those who exemplify the idea that doing good is good business.

Kendall Jenner once again is fronting the French brand’s campaign, joined by model and dancer Alton Mason.

The CEOs of Signet, Helzberg, and GIA spoke on a water conservation panel, and had lakes named in their companies’ honor.

Expected to earn up to $4.5 million, the “Jarretière” bracelet is the star of Christie’s “The Magnificent Jewels of Anne Eisenhower” sale.

With jewelry sales coming down from their pandemic highs, retailers need to do all they can to retain existing customers, Peter Smith says.

Jewelry historians, authors, and experts will explore the works of Tiffany & Co., Oscar Heyman, Verdura, and more.

Johnson joined the retailer in 1987, establishing its first human resources department.