WORLD TRADE
ORGANIZATIONG/C/W/432/Rev.1
24 February 2003
(03-1136)
Council for Trade in Goods Original:  English
WAIVER CONCERNING KIMBERLEY PROCESS CERTIFICATION SCHEME
FOR ROUGH DIAMONDS
Communication from Australia, Brazil, Canada, Isr ael, Japan, Korea, Philippines, Sierra Leone,
Thailand, United Arab Emirates and United States
Revision
The following draft waiver decision, dated 11 November 2002, has been received from the
Permanent Mission of Canada on behalf of Australia, Brazil, Canada, Israel, Japan, Korea,Philippines, Sierra Leone, Thailand, United Arab Emirates and the United States.
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Draft Decision of [...]
The General Council,
Having  regard  to the Guiding Principles to be followed in considering applications for
waivers adopted on 1 November 1956 (BISD 5S/25), the Understanding in Respect of Waivers of
Obligations under the General Agreement on Tariffs and Trade 1994, and paragraphs 3 and 4 ofArticle IX of the Marrakesh Agreement Establis hing the World Trade Organization (hereinafter
"WTO Agreement");
Conducting the function of the Ministerial Conference in the interval between meetings
pursuant to paragraph 2 of Article IV of the WTO Agreement;
Taking note  of the request of the Members listed in the Annex for a waiver from paragraphs 1
of Article XI, 1 of Article I, and 1 of Article XIII of the GATT 1994 with respect to their domestic
measures to regulate the international trade in rough diamonds consistent with the Kimberley Process
Certification Scheme;
Noting that this Decision does not prejudge the consistency of domestic measures taken
consistent with the Kimberley Process Certificati on Scheme with provisions of the WTO Agreement,
including any relevant WTO exceptions, and that the waiver is granted for reasons of legal certainty;
Recognizing  that the trade in conflict diamonds is a matter of serious international concern,
which can be directly linked to the fuelling of armed conflict, the activities of rebel movements aimed
at undermining or overthrowing legitimate government s, and the illicit traffic in, and proliferation of,
armaments, especially small arms and light weapons;
Recognizing  the extraordinary humanitarian nature of this issue and the devastating impact of
conflicts fuelled by the trade in conflict diamonds on the peace, safety and security of people inG/C/W/432/Rev.1
Page 2
affected countries and the systematic and gross human rights violations that have been perpetrated in
such conflicts;
Noting  the relevant resolutions of the United Nations Security Council under Chapter VII of
the United Nations Charter and the Kimberley Process Certification Scheme Participants’ intent tocontribute to and support the implementation of the measures provided for in those resolutions;
Further noting  that the Kimberley Process Certification Scheme responds to the call of the
United Nations General Assembly to give urgent and careful consideration to devising effective and
pragmatic measures to address the problem of conflict diamonds;
Further noting  the United Nations Security Council resolution S/RES/1459(2003) supporting
the Kimberley Process Certification Scheme;
Further recognizing  the interests of many WTO Members in the legitimate trade in rough
diamonds;
Noting  the assurances given by Members listed in the Annex that they intend, upon request, to
enter promptly into consultations with any interested  Member with respect to any difficulty or matter
that may arise as a result of their domestic implementation of the Kimberley Process Certification
Scheme for rough diamonds;
Considering that, in light of the foregoing, exceptional circumstances exist justifying a waiver
from paragraphs 1 of Article XIII, 1 of Article I, and 1 of Article XI of the GATT 1994 with respect
to the trade in rough diamonds;
Decides  as follows:
1. With respect to the measures taken by a Member listed in the Annex necessary to prohibit the
export of rough diamonds to non-Participants in the Kimberley Process Certification Scheme
consistent with the Kimberley Process Certific ation Scheme, paragraphs 1 of Article I; 1 of
Article XI; and 1 of Article XIII of the GATT 1994 are waived as of 1 January 2003 until
31 December 2006.
2. With respect to the measures taken by a Member listed in the Annex necessary to prohibit the
import of rough diamonds from non-Participants in the Kimberley Process Certification
Scheme consistent with the Kimberley Pro cess Certification Scheme, paragraphs 1 of
Article I; 1 of Article XI; and 1 of Article XIII of the GATT 1994 are waived as of
1 January 2003 until 31 December 2006.
3. This waiver also applies in respect of measures implementing the Kimberley Process
Certification Scheme taken by any Member not listed in the Annex to this Decision that
desires to be covered by the present waiver and that notifies the Council for Trade in Goods
accordingly.
4. Members benefiting from this waiver should notify their measures implementing the
Kimberley Process Certification Scheme to the Council for Trade in Goods.
5. Members benefiting from this waiver, upon request, intend to enter promptly into
consultations with any interested Member with respect to any difficulty or matter that may
arise as a result of the implementation of the measures regulating the export or import of
rough diamonds covered by this waiver; where a Member considers that any benefit accruingG/C/W/432/Rev.1
Page 3
to it under the GATT 1994 may be or is being impaired unduly as a result of such
implementation, such consultations shall examine the possibility of action  for a satisfactory
adjustment of the matter.
6. Any Member that considers that measures regulating the import or export of rough diamonds
covered by this waiver are being applied inconsistently with this waiver or that any benefit
accruing to it under the GATT 1994 may be or is being impaired unduly as a result of
measures to implement the Kimberley Process Certification Scheme covered by this waiver
and that considers that consultations have proved unsatisfactory, may bring the matter before
the General Council, which will examine it promptly and will formulate any
recommendations that it  judges appropriate.
7. This waiver shall not preclude the right of affected Members to have recourse to
Articles XXII and XXIII of the GATT 1994.
ANNEX
Australia, Brazil, Canada, Israel, Japan, Korea,  Philippines, Sierra Leone, Thailand, United Arab
Emirates, United States
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