WORLD TRADE
ORGANIZATIONG/C/37
20 October 2003
(03-5528)
Council for Trade in Goods Original:  English
WAIVER CONCERNING KIMBERLEY PROCESS CERTIFICATION
SCHEME FOR ROUGH DIAMONDS
Notification by Brazil
The following communication, dated 13 October 2003, has been received from the Permanent
Mission of Brazil.
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Pursuant to paragraph 4 of the waiver granted in the decision contained in document
WT/L/518, adopted on 15 May 2003, please find attached a copy of an unofficial translation of the
Provisional Measure No.125, of 20 July 2003, adopted by the Brazilian Government with a view to
implementing the Kimberley Process Certification Scheme.
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UNOFFICIAL TRANSLATION
PROVISIONAL MEASURE No. 125, OF 30 JULY 2003
Implements the Kimberley Process Certification Scheme – SCPK, relating to the exportation
and the importation of rough diamonds, and determines other provisions, in Brazil.
THE PRESIDENT OF THE REPUBLIC , in the exercise of the powers granted to him
under Article 62 of the Constitution, adopts the following Provisional Measure, with force of law:
Art. 1. – The Kimberley Process Certification Scheme – SCPK, an international mechanism
for the certification of origin of rough diamonds destined for exportation and importation, is hereby
established in Brazil, according to the requirements of the Kimberley Process, and under the terms
laid out in this Provisional Measure.
§ 1 – The term Kimberley Process denominates all international activities related to the
certification of origin of rough diamonds, with the aim of preventing the financing of conflicts
through their trade.
§ 2 – With regard to exportation, the Kimberley Process aims at preventing the shipment of
rough diamonds extracted from areas of conflict or  from any other area that has not been legalized
with the National Department of Mineral Production – DNPM.
§ 3 – With regard to importation, the Kimberley Process aims at preventing the entry of
consignments of rough diamonds without the approv ed Kimberley Process Certificate of the country
of origin.
Art. 2. – The importation and exportation of rough diamonds to and from the national territory
requires the compliance with the terms of this Provisional Measure.
Sole paragraph – Rough diamonds, for the purposes of this Provisional Measure, are
considered to be those classified in sub-positions 7102.10, 7102.21 and 7102.31 of the Harmonized
Commodity Description and Coding System.
Art. 3. – The activities of importation and exportation of rough diamonds with origin in
countries that do not participate in the Kimberley Process is hereby prohibited.
Sole paragraph – The Ministry of Development, Industry and Foreign Trade will periodically
publish the list of countries that are participants in the Kimberley Process.
Art. 4. – The objectives of the SCPK are:I – to ensure the access of the Brazilian production of rough diamonds to the international
market;
II – to prevent the entry, into national territory , of rough diamonds that originate in countries
that are not participants in the Kimberley Process, as well as those that originate from
countries that are participants but which are not accompanied by the documentation requiredby that Scheme; and
III – to prevent rough diamonds that are not accompanied by the Kimberley Process
Certificate from leaving national territory.G/C/37
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Art. 5. – The implementation and execution of  the SCPK are the responsibility of the
Ministries of Development, Industry and Foreign Tr ade, of Mines and Energy, and of Finance, within
their specific competences.
Art. 6. – The exportation of rough diamonds produced in Brazil can only be processed if a
Kimberley Process Certificate accompanies them.
§ 1 – The DNPM, the licensing entity in the exportation process, is competent to issue the
Kimberley Process Certificate.
§ 2 – In cases where it becomes necessary to open the package containing rough diamonds
that are to be exported, as a result of fiscal customs procedures, the Ministry of Finance, through the
Federal Revenue Secretariat, will issue a Kimberley Process Certificate in replacement of the original
certificate, transcribing the same information from the original certificate.
Art. 7. – Imports of rough diamonds shall be accompanied by a Kimberley Process
Certificate, issued by the competent authorities of the country of origin, and its presentation shall be
required for non-automatic licensing procedures by DNPM.
Art. 8. – It is the competence of the Ministry of Finance, through the Federal Revenue
Secretariat, to examine and handle the batches of rough diamonds submitted for customs procedures,with a view to determine compliance with the content of the accompanying Kimberley Process
Certificate, and to issue, under the terms of Art. 6. § 2, the corresponding certificate.
Art. 9. – The penalty of loss of the merchandise will apply to goods:
I –submitted to customs procedures without the cover of a Kimberley Process Certificate; and
II –in the possession of any person, in primary zones of ports, airports and border customs
posts, without cover of a Kimberley Process Certificate.
Art. 10. – A fine of one hundred per cent of the value of the goods shall be levied:
I – on the international trade of rough diamonds, without cover of a Kimberley Process
Certificate as verified in fiscal customs procedures in a secondary zone, on the basis of
records registered in fiscal or commercial ledgers; and
II – on the practice of fraud with a view to obtaining a Kimberley Process Certificate.Art. 11. – It is the competence of the Ministry of Finance, through the Federal Revenue
Secretariat, to apply the penalties foreseen in arts. 9. and 10., with due regard to the provisions of arts.
27. to 30. of Decree-Law no. 1.455, of 7 April 1976;
Art. 12. – The DNPM, the Federal Revenue Secretariat and the Foreign Trade Secretariat of
the Ministry of Development, Industry and Foreign Trade shall be jointly responsible for setting up
the SCPK, with the development and implementation of a monitoring and statistical control system of
trade and production of rough di amonds in Brazil, in accordance with that defined within the
Kimberley Process.
Art. 13. – The periods that are referred to in item I of art. 4. and in art. 5., both of Law no.
10.684, of 30 May 2003, are extended until 31 August 2003, with due regard to the remaining
provisions of that Law.G/C/37
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Art. 14 – This Provisional Measure enters into force on the date of its publication.
Brasília, 30 July 2003; 182nd of Independence and 115th of the Republic.
LUIZ INÁCIO LULA DA SILVA (President of the Republic)
Antonio Palocci Filho (Minister of Finance)
Luiz Fernando Furlan (Minister of Development. Industry and Foreign Trade)
Dilma Vana Roussef (Minister of Mines and Energy)
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