In the Senate of the United States,
April 10, 2003.
Resolved, That the bill from the House of Representa-
tives (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:
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Clean Diamond Trade
Act’’.
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HR 1584 EAS
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 ‘‘Kim-
berley 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 obliga-
tion to help sever the link between diamonds and con-
flict and press for implementation of an effective solu-
tion.
(7) Failure to curtail the trade in conflict dia-
monds or to differentiate between the trade in conflict
diamonds and the trade in legitimate diamonds could
have a severe negative impact on the legitimate dia-
mond 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 fa-
cilitate 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 en-
sure that measures taken to implement the Kimberley
Process Certification Scheme for Rough Diamonds
will be consistent with international trade rules.
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SEC. 3. DEFINITIONS.
In this Act:
(1) 
APPROPRIATE
CONGRESSIONAL
COMMIT-
TEES.—The term ‘‘appropriate congressional commit-
tees’’ means the Committee on Ways and Means and
the Committee on International Relations of the
House of Representatives, and the Committee on Fi-
nance and the Committee on Foreign Relations of the
Senate.
(2) 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 Partici-
pant 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 stand-
ards, practices, and procedures of the Kimberley
Process Certification Scheme.
(3) EXPORTING AUTHORITY.—The term ‘‘export-
ing authority’’ means 1 or more entities designated
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by a Participant from whose territory a shipment of
rough diamonds is being exported as having the au-
thority to validate the Kimberley Process Certificate.
(4) IMPORTING AUTHORITY.—The term ‘‘import-
ing authority’’ means 1 or more entities designated
by a Participant into 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 ‘‘Kimberley Process Certificate’’ means a forgery
resistant document of a Participant that demonstrates
that an importation or exportation of rough dia-
monds has been controlled through the Kimberley
Process Certification Scheme and contains the min-
imum elements set forth in Annex I to the Kimberley
Process Certification Scheme.
(6) 
KIMBERLEY
PROCESS
CERTIFICATION
SCHEME.—The term ‘‘Kimberley Process Certification
Scheme’ means those standards, practices, and proce-
dures of the international certification scheme for
rough diamonds presented in the document entitled
‘‘Kimberley Process Certification Scheme’’ referred to
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in the Interlaken Declaration on the Kimberley Proc-
ess Certification Scheme for Rough Diamonds of No-
vember 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 in-
dividual or entity.
(9) 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 Har-
monized 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 person’’ means—
(A) any United States citizen or any alien
admitted for permanent residence into the
United States;
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(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 Certification
Scheme.
(b) WAIVER.—The President may waive the require-
ments 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 coun-
try is taking effective steps to implement the Kim-
berley Process Certification Scheme; or
(2) the President determines that the waiver is
in the national interests of the United States, and re-
ports such determination to the appropriate congres-
sional committees, together with the reasons therefor.
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HR 1584 EAS
SEC. 5. REGULATORY AND OTHER AUTHORITY.
(a) IN GENERAL.—The President is authorized to and
shall as necessary issue such proclamations, regulations, li-
censes, and orders, and conduct such investigations, as may
be necessary to carry out this Act.
(b) RECORDKEEPING.—Any United States person seek-
ing 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 pro-
duction 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 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 Certificates
for the exportation from the United States of rough dia-
monds to determine whether such standards, practices, and
procedures are in accordance with the Kimberley Process
Certification Scheme. The President shall transmit to the
appropriate congressional committees a report on each an-
nual review under this subsection.