Retailers who agree to join the scheme need to grade their goods into three classes -- A, B and C. Grade A means stones that have not been unnaturally enhanced, B is for those that have been modified and C is for dyed and colored goods. Eight jewelry trade associations and workers unions have pledged their support for the scheme and will urge their members to join.

China has introduced a new classification scheme for diamonds and jade to protect consumers from possible exploitation, at the Hong Kong Convention and Exhibition Centre on November 23, 2005. It is being introduced by the Customs and Excise Department and the Hong Kong jewelry industry. The move comes after customs officers raided five jewelry shops popular with tourists in September and found $5.5 million worth of counterfeit jewelry --including items from a "No Fakes" shop-- in the citys biggest seizure of its kind.

Customs commissioner Timothy Tong Hin-ming said overseas visitors spend about $26 billion each year on diamond and jade jewellery, and watches. Dennis Ng Wang-pun, former chairman of the Hong Kong Jewellery Manufacturers Association, said the scheme would have a positive impact on business. "If Customs can stringently enforce the (property rights) law it will give tourists further confidence to shop in Hong Kong. Hence, the trade supports the scheme." Chan Wing-kai of the Consumer Council said the body also welcomed the initiative.