DIAMOND trading, through the Shanghai Diamond Exchange, soared after a tax-break policy was announced on July 1 this year, according to Shanghai Customs. The exchange in July imported a total of 8,000 carats, costing $7.38 mn, for non-industrial use.%%Exchange members are happy about the new policy as the July 1 17 per cent value-added tax levied on unprocessed diamond imports sold locally will be waived if sold through the exchange. Products using imported diamonds will be subject to a 4 per cent tax, down from 17 per cent. This is to encourage companies to purchase diamonds directly from the exchange and ensure quality. Since July, foreign wholesalers with the exchange have gradually increased supply to meet growing demand.%%In the first seven months of this year, the Shanghai Diamond Exchange imported a total of 464,000 carats valued at $210 mn. The amount was down 2.8 per cent from the previous year while the value was up 14.1 per cent from last year.