In the Senate of the United States,

April 10, 2003.

Resolved, That the bill from the House of Representatives (H.R. 1584) entitled ‘‘An Act to implement effective

measures to stop trade in conflict diamonds, and for other

purposes.’’, do pass with the following

AMENDMENT:

Strike out all after the enacting clause and insert:

1 SECTION 1. SHORT TITLE.

2 This Act may be cited as the ‘‘Clean Diamond Trade

3 Act’’.
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1 SEC. 2. FINDINGS.

2 Congress finds the following:

3 (1) Funds derived from the sale of rough dia4 monds are being used by rebels and state actors to fi5 nance military activities, overthrow legitimate gov6 ernments, subvert international efforts to promote

7 peace and stability, and commit horrifying atrocities

8 against unarmed civilians. During the past decade,

9 more than 6,500,000 people from Sierra Leone, An10 gola, and the Democratic Republic of the Congo have

11 been driven from their homes by wars waged in large

12 part for control of diamond mining areas. A million

13 of these are refugees eking out a miserable existence

14 in neighboring countries, and tens of thousands have

15 fled to the United States. Approximately 3,700,000

16 people have died during these wars.

17 (2) The countries caught in this fighting are

18 home to nearly 70,000,000 people whose societies have

19 been torn apart not only by fighting but also by ter20 rible human rights violations.

21 (3) Human rights and humanitarian advocates,

22 the diamond trade as represented by the World Dia23 mond Council, and the United States Government

24 have been working to block the trade in conflict dia25 monds. Their efforts have helped to build a consensus
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1 that action is urgently needed to end the trade in con2 flict diamonds.

3 (4) The United Nations Security Council has

4 acted at various times under chapter VII of the Char5 ter of the United Nations to address threats to inter6 national peace and security posed by conflicts linked

7 to diamonds. Through these actions, it has prohibited

8 all states from exporting weapons to certain countries

9 affected by such conflicts. It has further required all

10 states to prohibit the direct and indirect import of

11 rough diamonds from Sierra Leone unless the dia12 monds are controlled under specified certificate of ori13 gin regimes and to prohibit absolutely the direct and

14 indirect import of rough diamonds from Liberia.

15 (5) In response, the United States implemented

16 sanctions restricting the importation of rough dia17 monds from Sierra Leone to those diamonds accom18 panied by specified certificates of origin and fully

19 prohibiting the importation of rough diamonds from

20 Liberia. The United States is now taking further ac21 tion against trade in conflict diamonds.

22 (6) Without effective action to eliminate trade in

23 conflict diamonds, the trade in legitimate diamonds

24 faces the threat of a consumer backlash that could

25 damage the economies of countries not involved in the
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1 trade in conflict diamonds and penalize members of

2 the legitimate trade and the people they employ. To

3 prevent that, South Africa and more than 30 other

4 countries are involved in working, through the ‘‘Kim5 berley Process’’, toward devising a solution to this

6 problem. As the consumer of a majority of the world’s

7 supply of diamonds, the United States has an obliga8 tion to help sever the link between diamonds and con9 flict and press for implementation of an effective solu10 tion.

11 (7) Failure to curtail the trade in conflict dia12 monds or to differentiate between the trade in conflict

13 diamonds and the trade in legitimate diamonds could

14 have a severe negative impact on the legitimate dia15 mond trade in countries such as Botswana, Namibia,

16 South Africa, and Tanzania.

17 (8) Initiatives of the United States seek to resolve

18 the regional conflicts in sub-Saharan Africa which fa19 cilitate the trade in conflict diamonds.

20 (9) The Interlaken Declaration on the Kimberley

21 Process Certification Scheme for Rough Diamonds of

22 November 5, 2002, states that Participants will en23 sure that measures taken to implement the Kimberley

24 Process Certification Scheme for Rough Diamonds

25 will be consistent with international trade rules.
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1 SEC. 3. DEFINITIONS.

2 In this Act:

3 (1) APPROPRIATE CONGRESSIONAL COMMIT4 TEES.—The term ‘‘appropriate congressional commit5 tees’’ means the Committee on Ways and Means and

6 the Committee on International Relations of the

7 House of Representatives, and the Committee on Fi8 nance and the Committee on Foreign Relations of the

9 Senate.

10 (2) CONTROLLED THROUGH THE KIMBERLEY

11 PROCESS CERTIFICATION SCHEME.—An importation

12 or exportation of rough diamonds is ‘‘controlled

13 through the Kimberley Process Certification Scheme’’

14 if it is an importation from the territory of a Partici15 pant or exportation to the territory of a Participant

16 of rough diamonds that is—

17 (A) carried out in accordance with the

18 Kimberley Process Certification Scheme, as set

19 forth in regulations promulgated by the Presi20 dent; or

21 (B) controlled under a system determined

22 by the President to meet substantially the stand23 ards, practices, and procedures of the Kimberley

24 Process Certification Scheme.

25 (3) EXPORTING AUTHORITY.—The term ‘‘export26 ing authority’’ means 1 or more entities designated
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1 by a Participant from whose territory a shipment of

2 rough diamonds is being exported as having the au3 thority to validate the Kimberley Process Certificate.

4 (4) IMPORTING AUTHORITY.—The term ‘‘import5 ing authority’’ means 1 or more entities designated

6 by a Participant into whose territory a shipment of

7 rough diamonds is imported as having the authority

8 to enforce the laws and regulations of the Participant

9 regulating imports, including the verification of the

10 Kimberley Process Certificate accompanying the ship11 ment.

12 (5) KIMBERLEY PROCESS CERTIFICATE.—The

13 term ‘‘Kimberley Process Certificate’’ means a forgery

14 resistant document of a Participant that demonstrates

15 that an importation or exportation of rough dia16 monds has been controlled through the Kimberley

17 Process Certification Scheme and contains the min18 imum elements set forth in Annex I to the Kimberley

19 Process Certification Scheme.

20 (6) KIMBERLEY PROCESS CERTIFICATION

21 SCHEME.—The term ‘‘Kimberley Process Certification

22 Scheme’ means those standards, practices, and proce23 dures of the international certification scheme for

24 rough diamonds presented in the document entitled

25 ‘‘Kimberley Process Certification Scheme’’ referred to
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1 in the Interlaken Declaration on the Kimberley Proc2 ess Certification Scheme for Rough Diamonds of No3 vember 5, 2002.

4 (7) PARTICIPANT.—The term ‘‘Participant’’

5 means a state, customs territory, or regional economic

6 integration organization identified by the Secretary

7 of State.

8 (8) PERSON.—The term ‘‘person’’ means an in9 dividual or entity.

10 (9) ROUGH DIAMOND.—The term ‘‘rough dia11 mond’’ means any diamond that is unworked or sim12 ply sawn, cleaved, or bruted and classifiable under

13 subheading 7102.10, 7102.21, or 7102.31 of the Har14 monized Tariff Schedule of the United States.

15 (10) UNITED STATES.—The term ‘‘United

16 States’’, when used in the geographic sense, means the

17 several States, the District of Columbia, and any

18 commonwealth, territory, or possession of the United

19 States.

20 (11) UNITED STATES PERSON.—The term

21 ‘‘United States person’’ means—

22 (A) any United States citizen or any alien

23 admitted for permanent residence into the

24 United States;
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1 (B) any entity organized under the laws of

2 the United States or any jurisdiction within the

3 United States (including its foreign branches);

4 and

5 (C) any person in the United States.

6 SEC. 4. MEASURES FOR THE IMPORTATION AND EXPOR7 TATION OF ROUGH DIAMONDS.

8 (a) PROHIBITION.—The President shall prohibit the

9 importation into, or exportation from, the United States

10 of any rough diamond, from whatever source, that has not

11 been controlled through the Kimberley Process Certification

12 Scheme.

13 (b) WAIVER.—The President may waive the require14 ments set forth in subsection (a) with respect to a particular

15 country for periods of not more than 1 year each, if, with

16 respect to each such waiver—

17 (1) the President determines and reports to the

18 appropriate congressional committees that such coun19 try is taking effective steps to implement the Kim20 berley Process Certification Scheme; or

21 (2) the President determines that the waiver is

22 in the national interests of the United States, and re23 ports such determination to the appropriate congres24 sional committees, together with the reasons therefor.
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1 SEC. 5. REGULATORY AND OTHER AUTHORITY.

2 (a) IN GENERAL.—The President is authorized to and

3 shall as necessary issue such proclamations, regulations, li4 censes, and orders, and conduct such investigations, as may

5 be necessary to carry out this Act.

6 (b) RECORDKEEPING.—Any United States person seek7 ing to export from or import into the United States any

8 rough diamonds shall keep a full record of, in the form of

9 reports or otherwise, complete information relating to any

10 act or transaction to which any prohibition imposed under

11 section 4(a) applies. The President may require such person

12 to furnish such information under oath, including the pro13 duction of books of account, records, contracts, letters,

14 memoranda, or other papers, in the custody or control of

15 such person.

16 (c) OVERSIGHT.—The President shall require the ap17 propriate Government agency to conduct annual reviews of

18 the standards, practices, and procedures of any entity in

19 the United States that issues Kimberley Process Certificates

20 for the exportation from the United States of rough dia21 monds to determine whether such standards, practices, and

22 procedures are in accordance with the Kimberley Process

23 Certification Scheme. The President shall transmit to the

24 appropriate congressional committees a report on each an25 nual review under this subsection.
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1 SEC. 6. IMPORTING AND EXPORTING AUTHORITIES.

2 (a) IN THE UNITED STATES.—For purposes of this

3 Act—

4 (1) the importing authority shall be the United

5 States Bureau of Customs and Border Protection or,

6 in the case of a territory or possession of the United

7 States with its own customs administration, analo8 gous officials; and

9 (2) the exporting authority shall be the Bureau

10 of the Census.

11 (b) OF OTHER COUNTRIES.—The President shall pub12 lish in the Federal Register a list of all Participants, and

13 all exporting authorities and importing authorities of Par14 ticipants. The President shall update the list as necessary.

15 SEC. 7. STATEMENT OF POLICY.

16 The Congress supports the policy that the President

17 shall take appropriate steps to promote and facilitate the

18 adoption by the international community of the Kimberley

19 Process Certification Scheme implemented under this Act.

20 SEC. 8. ENFORCEMENT.

21 (a) IN GENERAL.—In addition to the enforcement pro22 visions set forth in subsection (b)—

23 (1) a civil penalty of not to exceed $10,000 may

24 be imposed on any person who violates, or attempts

25 to violate, any license, order, or regulation issued

26 under this Act; and
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1 (2) whoever willfully violates, or willfully at2 tempts to violate, any license, order, or regulation

3 issued under this Act shall, upon conviction, be fined

4 not more than $50,000, or, if a natural person, may

5 be imprisoned for not more than 10 years, or both;

6 and any officer, director, or agent of any corporation

7 who willfully participates in such violation may be

8 punished by a like fine, imprisonment, or both.

9 (b) IMPORT VIOLATIONS.—Those customs laws of the

10 United States, both civil and criminal, including those laws

11 relating to seizure and forfeiture, that apply to articles im12 ported in violation of such laws shall apply with respect

13 to rough diamonds imported in violation of this Act.

14 (c) AUTHORITY TO ENFORCE.—The United States Bu15 reau of Customs and Border Protection and the United

16 States Bureau of Immigration and Customs Enforcement

17 are authorized, as appropriate, to enforce the provisions of

18 subsection (a) and to enforce the laws and regulations gov19 erning exports of rough diamonds, including with respect

20 to the validation of the Kimberley Process Certificate by

21 the exporting authority.

22 SEC. 9. TECHNICAL ASSISTANCE.

23 The President may direct the appropriate agencies of

24 the United States Government to make available technical
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1 assistance to countries seeking to implement the Kimberley

2 Process Certification Scheme.

3 SEC. 10. SENSE OF CONGRESS.

4 (a) ONGOING PROCESS.—It is the sense of the Congress

5 that the Kimberley Process Certification Scheme, officially

6 launched on January 1, 2003, is an ongoing process. The

7 President should work with Participants to strengthen the

8 Kimberley Process Certification Scheme through the adop9 tion of measures for the sharing of statistics on the produc10 tion of and trade in rough diamonds, and for monitoring

11 the effectiveness of the Kimberley Process Certification

12 Scheme in stemming trade in diamonds the importation or

13 exportation of which is not controlled through the Kim14 berley Process Certification Scheme.

15 (b) STATISTICS AND REPORTING.—It is the sense of the

16 Congress that under Annex III to the Kimberley Process

17 Certification Scheme, Participants recognized that reliable

18 and comparable data on the international trade in rough

19 diamonds are an essential tool for the effective implementa20 tion of the Kimberley Process Certification Scheme. There21 fore, the executive branch should continue to—

22 (1) keep and publish statistics on imports and

23 exports of rough diamonds under subheadings

24 7102.10.00, 7102.21, and 7102.31.00 of the Har25 monized Tariff Schedule of the United States;
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1 (2) make these statistics available for analysis by

2 interested parties and by Participants; and

3 (3) take a leadership role in negotiating a stand4 ardized methodology among Participants for report5 ing statistics on imports and exports of rough dia6 monds.

7 SEC. 11. KIMBERLEY PROCESS IMPLEMENTATION COORDI8 NATING COMMITTEE.

9 The President shall establish a Kimberley Process Im10 plementation Coordinating Committee to coordinate the im11 plementation of this Act. The Committee shall be composed

12 of the following individuals or their designees:

13 (1) The Secretary of the Treasury and the Sec14 retary of State, who shall be co-chairpersons.

15 (2) The Secretary of Commerce.

16 (3) The United States Trade Representative.

17 (4) The Secretary of Homeland Security.

18 (5) A representative of any other agency the

19 President deems appropriate.

20 SEC. 12. REPORTS.

21 (a) ANNUAL REPORTS.—Not later than 1 year after

22 the date of the enactment of this Act and every 12 months

23 thereafter for such period as this Act is in effect, the Presi24 dent shall transmit to the Congress a report—
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1 (1) describing actions taken by countries that

2 have exported rough diamonds to the United States

3 during the preceding 12-month period to control the

4 exportation of the diamonds through the Kimberley

5 Process Certification Scheme;

6 (2) describing whether there is statistical infor7 mation or other evidence that would indicate efforts

8 to circumvent the Kimberley Process Certification

9 Scheme, including cutting rough diamonds for the

10 purpose of circumventing the Kimberley Process Cer11 tification Scheme;

12 (3) identifying each country that, during the

13 preceding 12-month period, exported rough diamonds

14 to the United States and was exporting rough dia15 monds not controlled through the Kimberley Process

16 Certification Scheme, if the failure to do so has sig17 nificantly increased the likelihood that those dia18 monds not so controlled are being imported into the

19 United States; and

20 (4) identifying any problems or obstacles encoun21 tered in the implementation of this Act or the Kim22 berly Process Certification Scheme.

23 (b) SEMIANNUAL REPORTS.—For each country identi24 fied in subsection (a)(3), the President, during such period

25 as this Act is in effect, shall, every 6 months after the initial
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1 report in which the country was identified, transmit to the

2 Congress a report that explains what actions have been

3 taken by the United States or such country since the pre4 vious report to ensure that diamonds the exportation of

5 which was not controlled through the Kimberley Process

6 Certification Scheme are not being imported from that

7 country into the United States. The requirement to issue

8 a semiannual report with respect to a country under this

9 subsection shall remain in effect until such time as the

10 country is controlling the importation and exportation of

11 rough diamonds through the Kimberley Process Certifi12 cation Scheme.

13 SEC. 13. GAO REPORT.

14 Not later than 24 months after the effective date of this

15 Act, the Comptroller General of the United States shall

16 transmit a report to the Congress on the effectiveness of the

17 provisions of this Act in preventing the importation or ex18 portation of rough diamonds that is prohibited under sec19 tion 4. The Comptroller General shall include in the report

20 any recommendations on any modifications to this Act that

21 may be necessary.

22 SEC. 14. DELEGATION OF AUTHORITIES.

23 The President may delegate the duties and authorities

24 under this Act to such officers, officials, departments, or
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1 agencies of the United States Government as the President

2 deems appropriate.

3 SEC. 15. EFFECTIVE DATE.

4 This Act shall take effect on the date on which the

5 President certifies to the Congress that—

6 (1) an applicable waiver that has been granted

7 by the World Trade Organization is in effect; or

8 (2) an applicable decision in a resolution adopt9 ed by the United Nations Security Council pursuant

10 to Chapter VII of the Charter of the United Nations

11 is in effect.

12 This Act shall thereafter remain in effect during those peri13 ods in which, as certified by the President to the Congress,

14 an applicable waiver or decision referred to in paragraph

15 (1) or (2) is in effect.

Attest:

Secretary.
108TH CONGRESS

1ST SESSION H. R. 1584

AMENDMENT