I 
108TH CONGRESS 
1ST SESSION H. R. 1584
To implement effective measures to stop trade in conflict diamonds, and 
for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
APRIL 3, 2003
Mr. HOUGHTON (for himself, Mr. THOMAS, and Mr. RANGEL) introduced the 
following bill; which was referred to the Committee on Ways and Means, 
and in addition to the Committee on International Relations, for a period 
to be subsequently determined by the Speaker, in each case for consider-
ation of such provisions as fall within the jurisdiction of the committee 
concerned 
A BILL 
To implement effective measures to stop trade in conflict 
diamonds, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Clean Diamond Trade 
Act’’. 
SEC. 2. FINDINGS. 
The Congress finds the following:
(1) Funds derived from the sale of rough dia-
monds are being used by rebels and state actors to 
finance military activities, overthrow legitimate gov-
ernments, subvert international efforts to promote 
peace and stability, and commit horrifying atrocities 
against unarmed civilians. During the past decade, 
more than 6,500,000 people from Sierra Leone, An-
gola, and the Democratic Republic of the Congo 
have been driven from their homes by wars waged 
in large part for control of diamond mining areas. 
A million of these are refugees eking out a miserable 
existence in neighboring countries, and tens of thou-
sands have fled to the United States. Approximately 
3,700,000 people have died during these wars. 
(2) The countries caught in this fighting are 
home to nearly 70,000,000 people whose societies 
have been torn apart not only by fighting but also 
by terrible human rights violations. 
(3) Human rights and humanitarian advocates, 
the diamond trade as represented by the World Dia-
mond Council, and the United States Government 
have been working to block the trade in conflict dia-
monds. Their efforts have helped to build a con-
sensus that action is urgently needed to end the 
trade in conflict diamonds.
(4) The United Nations Security Council has 
acted at various times under chapter VII of the 
Charter of the United Nations to address threats to 
international peace and security posed by conflicts 
linked to diamonds. Through these actions, it has 
prohibited all states from exporting weapons to cer-
tain countries affected by such conflicts. It has fur-
ther required all states to prohibit the direct and in-
direct import of rough diamonds from Sierra Leone 
unless the diamonds are controlled under specified 
certificate of origin regimes and to prohibit abso-
lutely the direct and indirect import of rough dia-
monds from Liberia. 
(5) In response, the United States implemented 
sanctions restricting the importation of rough dia-
monds from Sierra Leone to those diamonds accom-
panied by specified certificates of origin and fully 
prohibiting the importation of rough diamonds from 
Liberia. The United States is now taking further ac-
tion against trade in conflict diamonds. 
(6) Without effective action to eliminate trade 
in conflict diamonds, the trade in legitimate dia-
monds faces the threat of a consumer backlash that 
could damage the economies of countries not in-
volved in the trade in conflict diamonds and penalize
members of the legitimate trade and the people they 
employ. To prevent that, South Africa and more 
than 30 other countries are involved in working, 
through the ‘‘Kimberley Process’’, toward devising a 
solution to this problem. As the consumer of a ma-
jority of the world’s supply of diamonds, the United 
States has an obligation to help sever the link be-
tween diamonds and conflict and press for imple-
mentation of an effective solution. 
(7) Failure to curtail the trade in conflict dia-
monds or to differentiate between the trade in con-
flict diamonds and the trade in legitimate diamonds 
could have a severe negative impact on the legiti-
mate diamond trade in countries such as Botswana, 
Namibia, South Africa, and Tanzania. 
(8) Initiatives of the United States seek to re-
solve the regional conflicts in sub-Saharan Africa 
which facilitate the trade in conflict diamonds. 
(9) The Interlaken Declaration on the Kim-
berley Process Certification Scheme for Rough Dia-
monds of November 5, 2002, states that Partici-
pants will ensure that measures taken to implement 
the Kimberley Process Certification Scheme for 
Rough Diamonds will be consistent with inter-
national trade rules.
SEC. 3. DEFINITIONS. 
In this Act: 
(1) CONTROLLED
THROUGH
THE
KIMBERLEY 
PROCESS CERTIFICATION SCHEME.—An importation 
or exportation of rough diamonds is ‘‘controlled 
through 
the 
Kimberley 
Process 
Certification 
Scheme’’ if it is an importation from the territory of 
a Participant or exportation to the territory of a 
Participant of rough diamonds that is—
(A) carried out in accordance with the 
Kimberley Process Certification Scheme, as set 
forth in regulations promulgated by the Presi-
dent; or 
(B) controlled under a system determined 
by the President to meet substantially the 
standards, practices, and procedures of the 
Kimberley Process Certification Scheme. 
(2) EXPORTING
AUTHORITY.—The term ‘‘ex-
porting authority’’ means one or more entities des-
ignated by a Participant from whose territory a 
shipment of rough diamonds is being exported as 
having the authority to validate the Kimberley Proc-
ess Certificate. 
(3) IMPORTING
AUTHORITY.—The term ‘‘im-
porting authority’’ means one or more entities des-
ignated by a Participant into whose territory a ship-
ment of rough diamonds is imported as having the 
authority to enforce the laws and regulations of the 
Participant 
regulating 
imports, 
including 
the 
verification of the Kimberley Process Certificate ac-
companying the shipment. 
(4) KIMBERLEY
PROCESS
CERTIFICATE.—The 
term ‘‘Kimberley Process Certificate’’ means a for-
gery resistant document of a Participant that dem-
onstrates that an importation or exportation of 
rough diamonds has been controlled through the 
Kimberley Process Certification Scheme and con-
tains the minimum elements set forth in Annex I of 
the Kimberley Process Certification Scheme. 
(5) 
KIMBERLEY
PROCESS
CERTIFICATION 
SCHEME.—The term ‘‘Kimberley Process Certifi-
cation Scheme’’ means those standards, practices, 
and procedures of the international certification 
scheme for rough diamonds presented in the docu-
ment entitled ‘‘Kimberley Process Certification 
Scheme’’ referred to in the Interlaken Declaration 
on the Kimberley Process Certification Scheme for 
Rough Diamonds of November 5, 2002. 
(6) PARTICIPANT.—The term ‘‘Participant’’ 
means a state, customs territory, or regional eco-
nomic integration organization identified by the Sec-
retary of State. 
(7) PERSON.—The term ‘‘person’’ means an in-
dividual or entity. 
(8) ROUGH DIAMOND.—The term ‘‘rough dia-
mond’’ means any diamond that is unworked or sim-
ply sawn, cleaved, or bruted and classifiable under 
subheading 7102.10, 7102.21, or 7102.31 of the 
Harmonized Tariff Schedule of the United States. 
(9) 
UNITED
STATES.—The 
term 
‘‘United 
States’’, when used in the geographic sense, means 
the several States, the District of Columbia, and any 
commonwealth, territory, or possession of the United 
States. 
(10) UNITED
STATES
PERSON.—The term 
‘‘United States person’’ means—
(A) any United States citizen or any alien 
admitted for permanent residence into the 
United States; 
(B) any entity organized under the laws of 
the United States or any jurisdiction within the 
United States (including its foreign branches); 
and 
(C) any person in the United States.
SEC. 4. MEASURES FOR THE IMPORTATION AND EXPOR-
TATION OF ROUGH DIAMONDS. 
(a) PROHIBITION.—The President shall prohibit the 
importation into, or exportation from, the United States 
of any rough diamond, from whatever source, that has not 
been controlled through the Kimberley Process Certifi-
cation Scheme. 
(b) WAIVER.—The President may waive the require-
ments set forth in subsection (a) with respect to a par-
ticular country for periods of not more than 1 year each, 
if, with respect to each such waiver—
(1) the President determines and reports to the 
Congress that such country is taking effective steps 
to implement the Kimberley Process Certification 
Scheme; or 
(2) the President determines that the waiver is 
in the national interests of the United States, and 
reports such determination to the Congress, together 
with the reasons therefor. 
SEC. 5. REGULATORY AND OTHER AUTHORITY. 
(a) IN GENERAL.—The President is authorized to 
and shall as necessary issue such proclamations, regula-
tions, licenses, and orders, and conduct such investiga-
tions, as may be necessary to carry out this Act. 
(b) RECORDKEEPING.—Any United States person 
seeking to export from or import into the United States
any rough diamonds shall keep a full record of, in the form 
of reports or otherwise, complete information relating to 
any act or transaction to which any prohibition imposed 
under section 4(a) applies. The President may require 
such person to furnish such information under oath, in-
cluding the production of books of account, records, con-
tracts, letters, memoranda, or other papers, in the custody 
or control of such person. 
(c) OVERSIGHT.—The President shall require the ap-
propriate Government agency to conduct annual reviews 
of the standards, practices, and procedures of any entity 
in the United States that issues Kimberley Process Certifi-
cates for the exportation from the United States of rough 
diamonds to determine whether such standards, practices, 
and procedures are in accordance with the Kimberley 
Process Certification Scheme. The President shall trans-
mit to the Congress a report on each annual review under 
this subsection. 
SEC. 6. IMPORTING AND EXPORTING AUTHORITIES. 
(a) IN THE UNITED STATES.—For purposes of this 
Actl 
(1) the importing authority shall be the United 
States Bureau of Customs and Border Protection or, 
in the case of a territory or possession of the United
States 
with 
its 
own 
customs 
administration, 
analagous officials; and 
(2) the exporting authority shall be the Bureau 
of the Census. 
(b) OF OTHER COUNTRIES.—The President shall 
publish in the Federal Register a list of all Participants, 
and all exporting authorities and importing authorities of 
Participants. The President shall update the list as nec-
essary. 
SEC. 7. STATEMENT OF POLICY. 
The Congress supports the trade policy that the 
United States Trade Representative and other Govern-
ment agencies exercising functions relating to trade take 
appropriate steps to promote and facilitate the adoption 
by the international community of the Kimberley Process 
Certification Scheme implemented under this Act. 
SEC. 8. ENFORCEMENT. 
(a) IN GENERAL.—In addition to the enforcement 
provisions set forth in subsection (b)—
(1) a civil penalty of not to exceed $10,000 may 
be imposed on any person who violates, or attempts 
to violate, any license, order, or regulation issued 
under this Act; and 
(2) whoever willfully violates, or willfully at-
tempts to violate, any license, order, or regulation
issued under this Act shall, upon conviction, be fined 
not more than $50,000, or, if a natural person, may 
be imprisoned for not more than 10 years, or both; 
and any officer, director, or agent of any corporation 
who knowingly participates in such violation may be 
punished by a like fine, imprisonment, or both. 
(b) IMPORT VIOLATIONS.—Those customs laws of the 
United States, both civil and criminal, including those 
laws relating to seizure and forfeiture, that apply to goods 
imported into the United States shall apply with respect 
to rough diamonds imported in violation of this Act. 
SEC. 9. TECHNICAL ASSISTANCE. 
The President may direct the appropriate agencies of 
the United States Government, including the United 
States Bureau of Customs and Border Protection, to make 
available technical assistance, relating to compliance with 
the trade laws of the United States, to countries seeking 
to export rough diamonds to the United States consistent 
with the Kimberley Process Certification Scheme. 
SEC. 10. SENSE OF CONGRESS. 
(a) ONGOING PROCESS.—It is the sense of the Con-
gress that the Kimberley Process Certification Scheme, of-
ficially launched on January 1, 2003, is an ongoing proc-
ess. The President should work with Participants to 
strengthen the Kimberley Process Certification Scheme
through the adoption of measures for the sharing of statis-
tics on the production of and trade in rough diamonds, 
and for monitoring the effectiveness of the Kimberley 
Process Certification Scheme in stemming trade in dia-
monds the importation or exportation of which is not con-
trolled through the Kimberley Process Certification 
Scheme. 
(b) STATISTICS AND REPORTING.—It is the sense of 
the Congress that under Annex III to the Kimberley Proc-
ess Certification Scheme, Participants recognized that re-
liable and comparable data on the international trade in 
rough diamonds are an essential tool for the effective im-
plementation of the Kimberley Process Certification 
Scheme. Therefore, the executive branch should continue 
to—
(1) keep and publish statistics on imports and 
exports of rough diamonds under subheadings 
7102.10.00, 7102.21, and 7102.31.00 of the Har-
monized Tariff Schedule of the United States; 
(2) make these statistics available for analysis 
by interested parties and by Participants; and 
(3) take a leadership role in negotiating a 
standardized methodology among Participants for 
reporting statistics on imports and exports of rough 
diamonds.
(c) KIMBERLEY PROCESS IMPLEMENTATION COORDI-
NATING COMMITTEE.—It is the sense of the Congress that 
the President should establish a Kimberley Process Imple-
mentation Coordinating Committee to coordinate the im-
plementation of this Act. The Committee should be com-
posed of the following individuals or their designees: 
(1) The Secretary of the Treasury and the Sec-
retary of State, who shall be co-chairpersons. 
(2) The Secretary of Commerce. 
(3) The United States Trade Representative. 
(4) The Secretary of Homeland Security. 
(5) A representative of any other agency the 
President deems appropriate. 
SEC. 11. REPORTS. 
(a) ANNUAL REPORTS.—Not later than 1 year after 
the date of the enactment of this Act and every 12 months 
thereafter for such period as this Act is in effect, the 
President shall transmit to the Congress a report—
(1) describing actions taken by countries that 
have exported rough diamonds to the United States 
during the preceding 12-month period to control the 
exportation of the diamonds through the Kimberley 
Process Certification Scheme; 
(2) describing whether there is statistical infor-
mation or other evidence that would indicate efforts
to circumvent the Kimberley Process Certification 
Scheme, including cutting rough diamonds for the 
purpose of circumventing the Kimberley Process 
Certification Scheme; and 
(3) identifying each country that, during the 
preceding 12-month period, exported rough dia-
monds to the United States and was exporting rough 
diamonds not controlled through the Kimberley 
Process Certification Scheme, if the failure to do so 
has significantly increased the likelihood that those 
diamonds not so controlled are being imported into 
the United States. 
(b) SEMIANNUAL REPORTS.—For each country iden-
tified in subsection (a)(3), the President, during such pe-
riod as this Act is in effect, shall, every 6 months after 
the initial report in which the country was identified, 
transmit to the Congress a report that explains what ac-
tions have been taken by the United States or such coun-
try since the previous report to ensure that diamonds the 
exportation of which was not controlled through the Kim-
berley Process Certification Scheme are not being im-
ported from that country into the United States. The re-
quirement to issue a semiannual report with respect to a 
country under this subsection shall remain in effect until 
such time as the country is controlling the importation and
exportation of rough diamonds through the Kimberley 
Process Certification Scheme. 
SEC. 12. GAO REPORT. 
Not later than 24 months after the effective date of 
this Act, the Comptroller General of the United States 
shall transmit a report to the Congress on the effective-
ness of the provisions of this Act in preventing the impor-
tation or exportation of rough diamonds that is prohibited 
under section 4. The Comptroller General shall include in 
the report any recommendations on any modifications to 
this Act that may be necessary. 
SEC. 13. EFFECTIVE DATE. 
This Act shall take effect on the date on which the 
President certifies to the Congress that—
(1) an applicable waiver that has been granted 
by the World Trade Organization is in effect; or 
(2) an applicable decision in a resolution adopt-
ed by the United Nations Security Council pursuant 
to Chapter VII of the Charter of the United Nations 
is in effect. 
This Act shall thereafter remain in effect during those pe-
riods in which, as certified by the President to the Con-
gress, an applicable waiver or decision referred to in para-
graph (1) or (2) is in effect.
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