H. R. 1584
One Hundred Eighth Congress
of the
United States of America
AT THE FIRST SESSION
Begun and held at the City of Washington on Tuesday,
the seventh day of January, two thousand and three
An Act
To implement effective measures to stop trade in conflict diamonds, and for other
purposes.
Be it enacted by the Senate and House of Representatives 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.
Congress finds the following:
(1) Funds derived from the sale of rough diamonds are
being used by rebels and state actors to finance military activi-
ties, overthrow legitimate governments, 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, Angola, 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 Diamond Council,
and the United States Government have been working to block
the trade in conflict diamonds. Their efforts have helped to
build a consensus that action is urgently needed to end the
trade in conflict diamonds.
(4) The United Nations Security Council has acted at var-
ious 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 certain
countries affected by such conflicts. It has further required
all states to prohibit the direct and indirect import of rough
diamonds from Sierra Leone unless the diamonds are controlled
under specified certificate of origin regimes and to prohibit
absolutely the direct and indirect import of rough diamonds
from Liberia.
(5) In response, the United States implemented sanctions
restricting the importation of rough diamonds from Sierra
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Leone to those diamonds accompanied by specified certificates
of origin and fully prohibiting the importation of rough dia-
monds from Liberia. The United States is now taking further
action against trade in conflict diamonds.
(6) Without effective action to eliminate trade in conflict
diamonds, the trade in legitimate diamonds faces the threat
of a consumer backlash that could damage the economies of
countries not involved 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 majority of the world’s supply of diamonds,
the United States has an obligation to help sever the link
between diamonds and conflict and press for implementation
of an effective solution.
(7) Failure to curtail the trade in conflict diamonds or
to differentiate between the trade in conflict diamonds and
the trade in legitimate diamonds could have a severe negative
impact on the legitimate diamond trade in countries such as
Botswana, Namibia, South Africa, and Tanzania.
(8) Initiatives of the United States seek to resolve the
regional conflicts in sub-Saharan Africa which facilitate the
trade in conflict diamonds.
(9) The Interlaken Declaration on the Kimberley Process
Certification Scheme for Rough Diamonds of November 5, 2002,
states that Participants will ensure that measures taken to
implement the Kimberley Process Certification Scheme for
Rough Diamonds will be consistent with international trade
rules.
SEC. 3. DEFINITIONS.
In this Act:
(1) APPROPRIATE CONGRESSIONAL COMMITTEES.—The term
‘‘appropriate congressional committees’’ means the Committee
on Ways and Means and the Committee on International Rela-
tions of the House of Representatives, and the Committee on
Finance and the Committee on Foreign Relations of the Senate.
(2) CONTROLLED THROUGH THE KIMBERLEY PROCESS CERTIFI-
CATION SCHEME.—An importation or exportation of rough dia-
monds is ‘‘controlled through the Kimberley Process Certifi-
cation 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 President; or
(B) controlled under a system determined by the Presi-
dent to meet substantially the standards, practices, and
procedures of the Kimberley Process Certification Scheme.
(3) EXPORTING AUTHORITY.—The term ‘‘exporting authority’’
means 1 or more entities designated by a Participant from
whose territory a shipment of rough diamonds is being exported
as having the authority to validate the Kimberley Process Cer-
tificate.
(4) IMPORTING AUTHORITY.—The term ‘‘importing authority’’
means 1 or more entities designated by a Participant into
H. R. 1584—3
whose territory a shipment 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 accompanying the ship-
ment.
(5) KIMBERLEY
PROCESS
CERTIFICATE.—The term ‘‘Kim-
berley Process Certificate’’ means a forgery resistant document
of a Participant that demonstrates that an importation or expor-
tation of rough diamonds has been controlled through the Kim-
berley Process Certification Scheme and contains the minimum
elements set forth in Annex I to the Kimberley Process Certifi-
cation Scheme.
(6) KIMBERLEY PROCESS CERTIFICATION SCHEME.—The term
‘‘Kimberley Process Certification Scheme’’ means those stand-
ards, practices, and procedures of the international certification
scheme for rough diamonds presented in the document entitled
‘‘Kimberley Process Certification Scheme’’ referred to in the
Interlaken Declaration on the Kimberley Process Certification
Scheme for Rough Diamonds of November 5, 2002.
(7) PARTICIPANT.—The term ‘‘Participant’’ means a state,
customs territory, or regional economic integration organization
identified by the Secretary of State.
(8) PERSON.—The term ‘‘person’’ means an individual or
entity.
(9) ROUGH DIAMOND.—The term ‘‘rough diamond’’ means
any diamond that is unworked or simply sawn, cleaved, or
bruted and classifiable under subheading 7102.10, 7102.21, or
7102.31 of the Harmonized Tariff Schedule of the United States.
(10) 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.
(11) UNITED STATES PERSON.—The term ‘‘United States per-
son’’ 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 EXPORTATION 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 Certification Scheme.
(b) WAIVER.—The President may waive the requirements set
forth in subsection (a) with respect to a particular 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 appropriate
congressional committees that such country is taking effective
steps to implement the Kimberley Process Certification Scheme;
or
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(2) the President determines that the waiver is in the
national interests of the United States, and reports such deter-
mination to the appropriate congressional committees, 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, regulations, licenses, and
orders, and conduct such investigations, 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,
including the production of books of account, records, contracts,
letters, memoranda, or other papers, in the custody or control
of such person.
(c) OVERSIGHT.—The President shall require the appropriate
Government agency to conduct annual reviews of the standards,
practices, and procedures of any entity in the United States that
issues Kimberley Process Certificates for the exportation from the
United States of rough diamonds to determine whether such stand-
ards, practices, and procedures are in accordance with the Kim-
berley Process Certification Scheme. The President shall transmit
to the appropriate congressional committees a report on each annual
review under this subsection.
SEC. 6. IMPORTING AND EXPORTING AUTHORITIES.
(a) IN THE UNITED STATES.—For purposes of this Act—
(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, analogous 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 authori-
ties and importing authorities of Participants. The President shall
update the list as necessary.
SEC. 7. STATEMENT OF POLICY.
The Congress supports the policy that the President shall 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 attempts to vio-
late, 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