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Mindanao

Consumer Manufactures


Basketworks
| Holiday Decors | Toys and Dolls | Fine Jewelry | Costume Jewelry | Decorative Ceramics | Furniture | Leathergoods

I. Product Coverage
II. Product Uses
III. Factors of Production
IV. Historical Export Performance 
(5 years)
V. Useful Addresses

I. PRODUCT COVERAGE
Fine Jewelry product coverage/classification by Harmonized System (HS) and  Philippine Standard Commodity Classification (PSCC) is shown below:

HS CODE

PSCC

DESCRIPTION

7101.10

66711

natural pearls, unworked

7101.21

66712

cultured pearls, unworked

7101.22

66713

cultured pearls, worked

7102.10

66721

diamonds, rough, unsorted

7102.31

66722

diamonds, sorted (o.t. industrial), unworked or simply sawn, cleaved or bruited

7102.39

66729

diamonds (o.t. industrial), otherwise worked, but not mounted

7103.10

66731

precious/semi-precious stones (o.t. diamonds), unworked/rough

7103.91

66739

rubies, sapphires and emeralds, otherwise worked

7104.90

66749

other synthetic or reconstructed precious/semi- precious stones

9113.10

88592

watch straps, watch bands and bracelets, of precious metal

7113.11

89731

articles of jewelry and parts thereof, plated or not plated

7114.11

89732

articles of gold/silversmiths? wares and parts thereof

7116.10

89733

articles of natural or cultured pearls

7115.10

89741

catalysts in the form of wire cloth, platinum or other metals

7115.90

89749

articles of precious metal clad with precious metal

various

93101

precious/semi-precious stones imported on consignment basis

various

93102

jewelry of pearls and precious/semi-precious stones set on precious metal

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II. PRODUCT USE/S
Fine jewelry is essentially regarded as a luxury item. One?s standard of living and disposable income levels therefore largely influence demand.

Fine jewelry is generally attractive in the Philippines and most Filipinos buy jewelry because of the prestige it gives to one who wears it, as a wise investment, as gifts and heirlooms, and the innate Filipino tradition and attitude of wearing fashion accessories.

In both export and local markets, high opportunity lies in the middle and lower-end segments and in jewelry pieces which are made using a combination of mechanized casting and handcrafting, and herein lies the built-in advantage of the Philippine industry due to the availability of a large pool of skilled and creative workers.

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III. FACTORS OF PRODUCTION

A. Raw materials
Local  

The major raw material used by the industry is gold. Other materials used are silver and precious or semi-precious stones.

Gold, silver, south sea pearls and some precious stones are locally available. The  more valuable materials such as diamonds and other precious stones  have to be sourced from abroad.

The Philippines has an abundant supply of gold. Annual reports on world  gold production and demand by the Consolidated Gold Field Limited ranked the Philippines as the fourteenth (14th) highest gold producing country in the world with a production output of 28.4 metric tons in 1995.  In Asia, it is ranked the third largest gold producer next to Indonesia and Papua New Guinea.

In 1999, the Philippine gold production reached 31,031 kilograms.

The Philippines also has the Bangko Sentral (BSP) gold refinery, which is accredited by the London Metal Exchange. BSP is equipped to process raw materials in the form of unrefined gold and silver bullion to produce gold bars with purities up to 99.95% as well as silver bars with minimum purity of 92.5%. BSP also sells 24 carat gold in grains and thin sheets with selling prices based on the daily LME price plus an estimated 2% to 3% processing fee. With the liberalization of gold trading, gold is also available from local miners and/or small refiners though gold quality from sources other than BSP is not certified.

Gold and silver are sourced locally from Camarines Norte, Davao Province and other parts of Mindanao.

The Philippines south sea pearl has been declared as the Philippines national gem. Pearl farms are located in Palawan and southern part of the country.

 Imported  
Imported components of fine jewelry are diamonds, ruby, emerald and other precious and semi-precious stones.

B. Labor
The industry employs a pool of more than 100,000 workers. Salaries are dependent on the type of workers, which is if he is a goldsmith, stone setter, cleaner, and platter, wax modeler, casting operator or designer.

The main mode of training is through apprenticeship. However, training centers specifically for the jewelry industry workers have already been set-up and jointly managed by the government and private sector to upgrade the skills of the workers and improve productivity.  These major training centers are the Philippine Jewelry Training Center in Bulacan and San Eligius Jewelry Training Center located at Cottage Industry Technology Center, DTI, Marikina City. The University of Regina Carmelli in Bulacan now offers 4-year course on Jewelry Making.

C. Packaging Materials

Packaging materials for fine jewelry comes in colored small boxes and pouches. These packaging materials must have no hard or pointed articles to ensure that jewelry shall not be scratched or damaged.

D. Appropriate Standards and Certification
The Bureau of Product Standards through the Technical Committee on Jewelry had developed a total of ten (10) jewellery standards and these are as follows:   

  1. PNS 1301:1995/ISO 853:1986 (Ring Sizes)

  2. PNS 1305:1995/ISO 9202:1991 (Fineness of Precious Metals)

  3. PNS 1306:1995/ISO 8654:1987 (Colors of Gold Alloys)

  4. PNS 1307:1995/ISO 10713:1992 (Gold Alloy Coating)

  5. PNS 1308:1996 (Methods of Alloying)

  6. PNS 1314:1996 (Marking Requirements for Gold Jewelry)

  7. PNS 1315:1996 (Marking Requirements for Silver Jewelry)

  8. PNS 1321:1996 (Marking Requirements for Platinum Jewelry)

  9. PNS 1416:1996 (Determination of Gold in Gold Jewelry Alloys by Cupellation Method ?Fire Assay)

  10. PNS 1 417:1996 (Determination of Silver in Silver Jewelry Alloys by  Volumetric (potentiometric) method using sodium chloride or potassium chloride

The standard specifies that symbols shall be used to identify gold, silver and platinum while numerals shall be used to designate the precious metal content.   These shall be clearly and indelibly engraved or stamped in the item together with the manufacturer?s name, trademark or other identifying mark.

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IV. HISTORICAL EXPORT PERFORMANCE (5 YEARS)

A. Exports by Product

PHILIPPINE EXPORTS OF FINE JEWELRY
1997 to 2001
FOB Value In Thousand US Dollars

  1997 1998 1999 2000 2001 % Annual Growth Rate
Total          14.64          17.18          18.23   20.89      19.56 7.92%
Cultured Pearls, Worked         9,794          10,929         11,276 1,200 7,923 -3.20
Silver Jewelry         2,844            2,918           3,374 3.46 4,533 12.95%
Gold Jewelry            666            1,804           2,434 3.03 3,975 65.37%
Gold and Silver Wares            753            1,423              738 951 682 9.98%
Natural or Cultured Pearls            041                006           11 77 641 559.80%
Gem Sets             311                  70             138 648 528 92.66%
Precious and semi-precious stones         884

-

Jewelry on Consignment Basis            127                  16             106 030 391 401.68%

Source: National Statistics Office (NSO)

 

B. Exports by Market

PHILIPPINE EXPORTS OF FINE JEWELRY
1997 to 2001
FOB Value In Thousand US Dollars

  1997 1998 1999 2000 2001  Annual Growth Rate
Total  14,640  17,184  18,232 20,886 19,556 7.92
   Top 5 10,468 13,329 14,288 16,158 16,852 12.98
   Others 4,172 3,855 3,944 4,728 2,704 (7.06)
1. Japan 4,585 8,045   7,703     6,740     5,814 11.24
2. Hong Kong 2,967 1,878 2,051 2,657 5,371 26.06
3. USA 1,962 2,052 3,063 4,953 3,089 19.48
4. Great Britain 946 1,263 1,103 1,291 1,506 13.64
5. Italy 8 90 368 518 1,073 376.22
Source: National Statistics Office (NSO)

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V. USEFUL ADDRESSES

GUILD OF PHILIPPINE JEWELERS, INC.
Unit 609 Cityland Shaw Tower, 8003 Shaw Blvd.
Contact Person: Mrs. Mercedes C. Llamas, President
Tel No: (63 2) 632 1115
Fax No: (63 2) 638 4420
Email: gpjewels@info.com

MEYCAUAYAN JEWELRY INDUSTRY ASSOCIATION, INC.
30 Malhacan, Meycauayan, Bulacan
Contact Person: Ms. Cecille Ramos, Chairman
Tel No: (63 44) 721 0180; (63 44) 228 2611
Fax No: (63 44) 228 2840
Email: mjia@blcn.pworld.net.ph

PHILIPPINE ASSOCIATION OF PEARL PRODUCERS/EXPORTERS
45 Don Vicente Madrigal Avenue
Corinthian Gardens, Quezon City
Contact Person: Mr. Jacques Branellec, President
Tel No: (63 2) 810-0572
Fax No: (63 2) 818-9778
URL: www.jewelmer.com

Philippine Jewelry Business Club Foundation, Inc.                                       c/o 3rd Level, Shangri-La Mall, Mandaluyong City                                                Contact Person:  Mr. Ronald L. Velayo, President                                             Tel No: (632) 635 5686

Association of Fine Jewelry Exporters and Manufacturers, Inc.                              55-A Eleventh Avenue, New Manila,Quezon City                                        Contact Person:  Ms. Maria Asuncion de Faustmann, Secretary                          Tel. No:  7219521   Fax No: 7210024

 

 

 

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