Proposal for a Council Regulation implementing the Kimberley Process certification scheme for the international trade in rough diamonds
Date: 2002-08-08
Institutions: European Commission
Subjects: customs inspection, customs regulations, dissemination of information, exchange of information, export licence, export monitoring, import licence, international trade, precious stones

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Official Journal of the European Communities

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Proposal for a Council Regulation implementing the Kimberley Process certification scheme for
the international trade in rough diamonds

(2003/C 20 E/13)

COM(2002) 455 final — 2002/0199(ACC)

(Submitted by the Commission on 8 August 2002)

EXPLANATORY MEMORANDUM

The United Nations Security Council has imposed sanctions on the rebel movements in Sierra Leone and
Angola and on the Liberian government for supporting the rebels in Sierra Leone. The sanctions include a
prohibition on imports of rough diamonds from Liberia and, if they are not accompanied by a certificate
of origin issued by the respective legitimate governments, from Angola and Sierra Leone.

The sanctions have failed to stop the flow of conflict diamonds into the legitimate trade or to bring the
conflicts to a halt. Conflict diamonds are continuing to find a market and enter the legitimate diamond
trade. There is therefore a need to complement the sanctions to reduce the role of such diamonds in
fuelling conflicts.

At the initiative of African diamond producing countries in particular, producer and trading countries,
industry and civil society have met in the ‘Kimberley Process’ to design a certification scheme for the
international trade in rough diamonds.

The purpose of the scheme is to prevent ‘conflict’ diamonds from fuelling armed conflicts and discrediting
the legitimate market for rough diamonds, which makes an important economic contribution, not least to
certain developing countries in Africa.

Such a certification scheme will make a major contribution to bringing an end to these conflicts and serve
the implementation of the EU programme on conflict prevention.

On 29 October 2001 the Council authorised the Commission to negotiate an agreement establishing an
international certification scheme for rough diamonds and to conduct these negotiations on behalf of the
European Community.

A ministerial meeting of the Kimberley Process in Gaborone on 29 November 2001 produced detailed
proposals for the scheme. The ministers agreed to submit the proposals to their competent authorities with
a view to implementing the scheme at the earliest possible date in the course of 2002. Participants are
encouraged to start using the certificate as soon as possible, but trade restrictions will not be applied until
the scheme is put into force by all participants. Provided all participants have managed to put in place the
necessary internal
legislation, they are expected to launch the scheme simultaneously at a Kimberley
Process ministerial meeting in November 2002.

Though the Commission has largely met the major objectives of the Council's authorisation to conduct
negotiations, the negotiations will not lead to the formal agreement initially envisaged.

There remain two not fully resolved issues, namely the definitions of ‘participant’ and ‘conflict diamonds’.
These issues affect neither the framework nor the individual components of the certification scheme, and
broad agreement has been reached on the rest of the document. The two outstanding issues are expected
to be resolved at the meeting in Geneva.

In spite of the two outstanding issues the Commission therefore considers the design of the certification
scheme to be definitive. The Community can therefore proceed with the preparations for the scheme's
implementation. This is necessary to enable the Community to be a founder participant, which is desirable,
and will allow the Community to be a leading partner in combating conflict diamonds.

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The Commission therefore invites the Council to adopt the attached proposal for a Council Regulation
implementing the Kimberley Process certification scheme in the Community. The document containing the
Kimberley certification scheme for rough diamonds is attached to the proposed Council Regulation as
Annex I.

The proposed Regulation would enable the Community to take all the necessary preparatory steps for the
implementation of the scheme by the Community. The entry into force of the proposed import and export
prohibition must, however, be suspended until the participants have set the date on which they will all
simultaneously apply the scheme.

The certification scheme is basically an export and import control regime.

Producer countries will control the production and transport of rough diamonds from mine to point of
export. Shipments of rough diamonds will be sealed in tamper-resistant containers and a Kimberley Process
certificate issued for each shipment.

Re-exporting countries will ensure that only rough diamonds exported/imported under a Kimberly Process
certificate enter the chain of transactions from import to export. The diamond industry will introduce a
system of self regulation to support government efforts.

Importing countries will
inspect the seal and the certificate at the time of import. Imports of rough
diamonds not accompanied by a certificate issued by a Kimberly Process participant will be prohibited,
as will exports to non-participants.

It is expected that all countries producing and trading rough diamonds will participate.

Participants will set up a mutual system to monitor the internal controls underpinning the issue of
certificates.

The United Nations General Assembly welcomed the certification scheme developed by the Kimberley
Process in Resolution 56/263 of 13 March 2002.

Subjecting international trade in rough diamonds to a certification scheme of the kind described above
concerns both the free movement of goods and the common commercial policy. For the purposes of such
a scheme the Community is to be considered a single entity without internal borders. The Community's
participation in the Kimberley Certification Scheme is based on the Community's exclusive competence in
these matters.

foreign and security policy reasons and economic considerations.

The Community's participation in the Kimberley Process certification scheme for rough diamonds is
necessary and desirable for
In
Antwerp and London the Community has two of the world largest rough diamond trading centres, and
these centres are vulnerable to the effects of conflict diamonds on the legitimate trade. Participation in the
certification scheme will protect the economic and financial interests of those centres and the Community
as a whole. Furthermore, such participation is in line with the objectives of conflict management and
conflict prevention defined by the European Council (1).

(1) Conclusions of the Göteborg European Council.

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THE COUNCIL OF THE EUROPEAN UNION,

Kimberley Process and called on all interested parties to
participate in that scheme.

Having regard to the Treaty establishing the European
Community, and in particular Article 133 thereof,

Having regard to the proposal from the Commission,

Whereas:

(1) The sanctions adopted by the United Nations Security
the rebel movements in Sierra Leone
Council against
and Angola
the Liberian government,
prohibiting under certain conditions imports of rough
diamonds from Liberia, Angola and Sierra Leone have
not been able to stop the flow of conflict diamonds
into the legitimate trade or to bring the conflicts to a halt.

and against

inter

(2) The Göteborg European Council of June 2001 endorsed a
programme for the prevention of violent conflicts, which
the Member States and the
alia,
states,
Commission will
trade in high-value
commodities, including by identifying ways of breaking
the link between rough diamonds and violent conflicts
and supporting the Kimberley Process.

that
tackle the illicit

(3) Council Regulation (EC) No 303/2002 of 18 February
2002 concerning the importation into the Community
of rough diamonds from Sierra Leone (1) prohibits under
certain conditions, the importation of rough diamonds
into the Community.

(4) There is a need to complement the existing measures with
effective controls over the international trade in rough
diamonds in order
the trade in conflict
to prevent
diamonds from financing the efforts of rebel movements
and their allies to undermine legitimate governments.
Effective control will help maintain international peace
and security and will also protect
the revenue from
exports of rough diamonds, which is essential for the
development of producer countries in Africa.

(5) The Kimberley Process negotiations, bringing together the
Community and producer and trading countries repre-
senting practically all
in rough
diamonds, as well as the diamond industry and represen-
tatives of civil society, were initiated with a view to
developing such an effective control system. They led to
the development of a certification scheme.

international

trade

(8) Implementation of the certification scheme requires that
the Community's imports and exports of rough diamonds
to be made subject to the certification scheme, including
the issue of the relevant certificates by participants in the
scheme.

(9) Each Member State

competent
authority to implement the relevant provisions of this
Regulation within its territory.

should designate

a

(10) The validity of certificates for imported rough diamonds
should be properly verified by the competent authorities
of the Community.

(11) The issue, validation or verification of a certificate should
not be construed as equivalent or an alternative to any
requirement of customs control.

(12) In order to increase the effectiveness of the certification
scheme, circumvention or attempts thereto should be
prevented. Likewise, providers of ancillary or directly
related services should exercise due diligence in estab-
lishing that the provisions of this Regulation are duly
applied.

(13) Export certificates for rough diamonds should only be
issued and validated where there is conclusive evidence
that
those diamonds have been imported under a
certificate.

(14) Circumstances may justify that the competent authority of
the importing participant should send the competent
the exporting participant confirmation of
authority of
import of shipments of rough diamonds.

(15) A system of warranties and industry self-regulation of the
kind proposed by the representatives of
the rough
diamond industry in the Kimberley Process could facilitate
the provision of such conclusive evidence.

(16) Temporary provisions should be provided to allow the
export of rough diamonds imported before the entry
into force of this Regulation.

(6) All participants accepted the outcome of the negotiations
as the basis for implementing measures within their own
jurisdiction.

(7) The UN General Assembly,

in its resolution 56/263,
welcomed the certification scheme developed in the

(1) OJ L 47, 19.2.2002, p. 8.

(17) Each Member State

the penalties
applicable in event of breach of the provisions of this
Regulation.

should determine

(18) The provisions of this Regulation concerning the import
and export of rough diamonds should not apply to rough
diamonds transiting the Community in the course of
export to another Participant.

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(19) For the purposes of

the objectives of

the Kimberley
Process and the implementation of
the certification
scheme, the European Community should be a participant
in the Kimberley Process. It should be represented by the
European Commission at meetings of participants in the
Kimberley Process certification scheme.

(20) Since the measures necessary for the implementation of
this Regulation are management measures within the
meaning of Article 2 of Council Decision 1999/468/EC
of 28 June 1999 laying down the procedures for the
exercise of
conferred on the
Commission (1), they should be adopted by use of the
management procedure provided for in Article 4 of that
Decision.

implementing powers

(21) In the performance of its duties under the certification
scheme the Commission should be assisted by the
Committee established under Council Regulation (EC)
No 2271/96 of 22 November 1996 protecting against
the effects of the extra-territorial application of legislation
adopted by a third country, and actions based thereon or
resulting therefrom (2). The Committee will also enable
the Commission and Member States to build and share
experience as to the practical application of this Regu-
lation.

(22) This Regulation should enter into force on the day of its
publication, but the provisions on the import and exports
control should be suspended until a date has been agreed
in the Kimberley Process for the simultaneous implemen-
tation of
controls by all
participants,

and export

import

the

HAS ADOPTED THIS REGULATION:

CHAPTER I

SUBJECT MATTER AND DEFINITIONS

Article 1

This Regulation sets up a Community system of certification
and import and export controls for rough diamonds for the
purposes of implementing the Kimberley Process certification
scheme.

For the purposes of the certification scheme the Community
will be considered as one entity without internal borders.

Article 2

For the purposes of this Regulation the following definitions
apply:

(a)

(b)

‘Kimberley Process’ refers to the forum in which the
participants have designed an international certification
scheme for rough diamonds;

‘Kimberley Process certification scheme’
(hereinafter ‘KP
certification scheme’) refers to the international certifi-
cation scheme negotiated by the Kimberley Process and
set out in Annex I;

(c)

‘Participants’ refers to participants in the KP certification
scheme listed in Annex II;

(d)

‘certificate’ means a document duly issued and validated by
a participant's competent authority identifying a shipment
of rough diamonds as being in compliance with the
requirements of the KP certification scheme;

(e)

‘competent authority’ means the authority designated by a
participant to issue, validate or verify certificates;

(f)

‘Community authority’ means a competent authority
designated by a Member State and listed in Annex III;

(g)

(h)

(i)

(j)

‘Community certificate’ means a certificate corresponding
to the specimen in Annex IV and issued by a Community
authority;

‘confirmation of imports of shipments of rough diamonds’
refers to the import confirmation specified in paragraph
24 of Annex I to this Regulation;

‘conflict diamonds’ means rough diamonds as defined
under the KP Certification Scheme;

‘rough diamond’ means a diamond that is unworked or
the
simply sawn, cleaved or bruted and falls under
Harmonised Commodity Description and Coding System
7102 10, 7102 21 and 7102 31 (hereinafter HS code);

(k)

‘imports’ means the physical entering or bringing into any
part of the geographical territory of a participant;

(l)

‘export’ means the physical leaving or taking out of any
part of the geographical territory of a participant;

(m) ‘shipment’ means one or more parcels;

The Scheme does not prejudice or substitute any provisions in
force relating to customs formalities and controls.

(n)

‘parcel’ means one or more diamonds that are packed
together;

(1) OJ L 184, 17.7.1999, p. 23.
(2) OJ L 309, 29.11.1996, p. 1.

(o)

‘parcel of mixed origin’ means a parcel that contains rough
diamonds from two or more countries of origin.

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CHAPTER II

IMPORT REGIME

Article 3

The

shall

customs

authorities

inform the

1.
relevant
Community authority of the arrival of rough diamonds from
a third country as soon as they are presented to customs.
Where a customs declaration has been lodged, clearance shall
be suspended until the formalities or requirements provided for
in paragraphs 2, 3 and 4 have been met.

2.
The import of rough diamonds into the Community shall
be prohibited unless all of the following conditions are fulfilled:

If a problem is found to be the result of unintentional
2.
mistakes, a Community authority may correct mistakes on a
the
certificate after consulting the competent authority of
participant
and
certificate
proceed with verification after informing the Commission.

issued or validated that

that

In all other cases the Community authority that impounded the
consignment shall confiscate the shipment and return it to the
competent authority of the country of origin. If that country
cannot be established, the Community authority shall put the
shipment up for public sale. After deduction of
the costs
incurred by the Community authority, the proceeds from the
sale shall be made available for strengthening the effectiveness
of the certification scheme.

(a) the rough diamonds are accompanied by a certificate
validated by the competent authority of a participant;

Article 6

(b) the rough diamonds are contained in tamper-resistant
containers properly sealed by that competent authority;

(c) the certificate is attached in an inseparable way to the

container.

3.
After import each sealed container of rough diamonds
and the inseparably attached certificate shall be submitted at
the earliest opportunity to a Community authority for verifi-
cation.

4.
No further movement, handling or processing shall be
allowed until a Community authority has established that
neither the sealing nor the attachment of the certificate has
been tampered with and has confirmed the validity of the
certificate on the original certificate itself and provided the
importer with an authenticated copy of
confirmed
certificate.

the

The confirmation procedure shall take place within 30

5.
days of the submission of the certificate.

The Commission shall consult participants on the need
1.
and practical arrangements
for providing confirmation of
imports into the Community to the competent authority of
the exporting participant that has validated a certificate.

On the basis of these consultations the Commission may,
2.
in accordance with the procedure referred to in Article 22(2),
lay down guidelines for such confirmation.

Article 7

the participants' certificates,

The Commission shall provide all Community authorities with
the
authenticated specimens of
issuing
names and other relevant details of the participants'
and/or validating authorities,
authenticated specimens of
stamps and signatures attesting that a certificate has been
legally issued or validated and any other relevant information
received in respect of certificates.

Article 8

1.
A Community authority shall provide the Commission
with a monthly report on all certificates provided for under
Article 3(2)(a) submitted for verification.

Article 4

Without prejudice to the controls provided for by customs
a Community authority shall open
legislation in force,
containers with a view to verifying that their contents match
the particulars provided on the certificate unless circumstances
or reasonable grounds warrant otherwise.

For each certificate this report shall list at least:

(a)

the unique certificate number,

(b) the name of the issuing and validating authority,

Article 5

If a Community authority establishes that a certificate is
1.
in
not valid or that
conformity with the accompanying certificate, that authority
shall:

the contents of a shipment are not

(c)

the date of issue and validation,

(d) the date of expiry of validity,

(e)

the country of provenance,

(f)

the country of origin,

(a)

impound the shipment immediately, and

(b) transmit all relevant information to the Commission and to
the competent authority of the participant that purportedly
issued or validated the certificate for the shipment
in
question.

(g) the HS code,

(h) the carat weight,

(i)

the value,

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(j)

the verifying authority,

(k) the date of verification.

A Community authority shall provide the exporter with
the Community certificate it has

3.
an authenticated copy of
validated.

The Commission may,
referred to in Article 22(2), determine the format of
report
scheme's working.

in accordance with the procedure
this
the certification

in order to facilitate monitoring of

A Community authority shall keep the originals of
2.
certificates provided for under Article 3(2)(a) submitted for
verification for at least three years. It shall provide access to
these original certificates to the Commission or to persons or
bodies designated by the Commission, in particular with a view
to answering questions raised within the framework of the KP
certification scheme.

CHAPTER III

EXPORT REGIME

Article 9

The

shall

customs

authorities

inform the

relevant
1.
Community authority of
the intended departure of rough
diamonds as soon as they are presented to customs for
export to a third country Where an export declaration has
been lodged, clearance shall be suspended until the formalities
or requirements provided for in paragraph 2 have been met.

2.
The export from the Community of rough diamonds shall
be prohibited unless all of the following conditions are fulfilled:

Article 11

If an exporter is a member of a diamond organisation listed in
Annex V, a Community authority may accept as conclusive
into the Community a signed
evidence of
declaration by the exporter to that effect. Such a declaration
shall contain at least the information to be given in an invoice
under the second indent of Article 17(2)(a).

import

lawful

Article 12

For a period of three months after the entry into force of this
Regulation, and without prejudice to the provisions of Articles
10 and 11, a Community authority shall consider rough
diamonds for export as such or as part of a parcel to have
been lawfully imported within the meaning of Article 10 if the
exporter provides conclusive evidence that
those diamonds
were imported before the entry into force of this Regulation.

Article 13

If a Community authority considers that

there is no
1.
conclusive evidence that
rough diamonds to be exported
fulfil the conditions of Articles 10, 11 or 12, that authority
shall:

(a) the rough diamonds are accompanied by a Community
certificate issued and validated by a Community authority;

(a)

impound the shipment immediately, and

(b) the rough diamonds are contained in tamper-resistant
containers properly sealed by the Community authority
before validating the relevant Community certificate;

(c) the Community certificate has been attached in an insep-

arable way to the container;

(d) the exporter has received an authenticated copy of the

validated Community certificate.

Article 10

A Community authority may not issue a Community

1.
certificate to an exporter until it has established:

(a) that the exporter has provided conclusive evidence that the
rough diamonds for which a certificate is being requested
were lawfully imported,
is in accordance with the
provisions of Article 3;

that

(b) that the other information requested on the certificate is
correct, and that the rough diamonds will be imported into
the territory of a participant.

A Community authority shall not validate a Community
2.
certificate until
it has sealed the tamper-resistant container
containing the rough diamonds for which it has issued a
Community certificate.

(b) notify

the
information.

European Commission

of

all

relevant

2.
If a problem is found to be the result of unintentional
mistakes, a Community authority may correct the mistakes on
the
and proceed with the authorisation after
informing the Commission.

certificate

In all other cases the Community authority that impounded the
consignment shall confiscate the shipment and return it to the
competent authority of the country of origin. If that country
cannot be established, the shipment shall be put up for public
sale. After deduction of the costs incurred by the Community
authority, the proceeds from the sale shall be made available
for strengthening the effectiveness of
the KP certification
scheme.

Article 14

Without prejudice to the controls provided for by customs
legislation in force, a Community authority shall, before
issuing or validating a certificate, physically inspect the rough
diamonds to be exported with a view to verifying that the
characteristics of the rough diamonds, and in particular their
carat weight and value, match the data provided on the
certificate,
grounds
unless
warrant otherwise.

circumstances

reasonable

or

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Article 15

1.
Community authorities shall provide the Commission
with a monthly report on all Community certificates issued
and validated by them.

For each certificate this report shall list at least the following:

(a)

the unique certificate number,

(b) the name of the issuing and validating authority,

self-regulation for the purposes of implementing the KP Certifi-
cation Scheme may apply to the Commission for listing in
Annex V.

2. When applying for listing an organisation shall:

(a) provide conclusive evidence that

its members, whether

natural or legal persons, have undertaken:

(c)

the date of issue and validation,

(d) the date of expiry of validity,

(e)

the country of provenance,

(f)

the country of origin,

(g) the HS code,

(h) the carat weight and value.

In accordance with the procedure referred to in Article 22(2),
the Commission may determine the format of the report in
order to facilitate monitoring of
the certification scheme's
working.

2.
The Community authorities shall keep for at least 3 years
the authenticated copies provided for under Article 9(2)(c) as
well as all information received from an exporter to justify the
issue and validation of a Community certificate.

They shall provide access to those authenticated copies and this
information to the Commission or
to persons or bodies
designated by the Commission, in particular with a view to
answering questions raised within the framework of the KP
certification scheme.

Article 16

The Commission shall consult participants on the need
1.
and practical arrangements
for obtaining confirmation of
imports of rough diamonds exported from the Community
covered by a certificate validated by Community authority.

2.
On the basis of these consultations the Commission may,
in accordance with the procedure referred to in Article 22(2),
lay down guidelines for such confirmation.

CHAPTER IV

INDUSTRY SELF-REGULATION

Article 17

1.
Organisations representing traders in rough diamonds
which have established a system of warranties and industry

(i) to sell only diamonds purchased from legitimate
involved in funding conflict and in
sources not
compliance with United Nations resolutions and to
guarantee in writing on the invoice accompanying
each sale of rough diamonds that, on the basis of
their personal knowledge and/or written warranties
provided by the supplier of such diamonds,
the
diamonds sold are not conflict diamonds;

said

containing

(ii) to accompany each sale of rough diamonds with an
invoice
guarantee
the
unequivocally identifying the seller and buyer and
their registered offices, containing the VAT identifi-
the
cation number of the seller, where applicable,
quantity/weight and qualification of the goods sold,
the value of the transaction and the date of delivery;

signed

(iii) not

to buy rough diamonds

from suspect or
unknown sources of supply and/or rough diamonds
originating in non-participants in the KP certification
scheme;

(iv) not to buy rough diamonds from any source found,
after legally binding due process, to have violated
government
laws and regulations concerning the
trade in conflict diamonds;

(v) not to buy rough diamonds in or from any region
is the subject of an advisory notice from a
that
governmental or KP certification scheme authority
to the effect that conflict diamonds are emanating
from or are available for sale in that region;

(vi) not knowingly to buy, sell or assist others in buying

or selling conflict diamonds;

(vii) to ensure that all employees buying or selling rough
diamonds within the diamond trade
fully
informed of trade resolutions and government regu-
lations restricting the trade in conflict diamonds;

are

(viii) to create and maintain for at least three years records
invoices received from suppliers and issued to

of
customers;

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(ix) to instruct an independent auditor to certify that
these records have been created and maintained
accurately and either that it has identified no trans-
actions which failed to comply with the above-
that any transaction
mentioned undertakings or
which failed to comply with the above-mentioned
the
undertakings
to
been
Commission and the competent authorities of
the
Member State in which that transaction took place;

reported

duly

has

(x) to provide on request the European Commission and
the Community authority in the Member State in
is resident or established with
which a member
records and the
access
reports from the independent auditors.

to the relevant business

(b) provide conclusive evidence that is has adopted rules and

regulations which oblige the organisation:

(i) to expel any member found, after a due process inves-
tigation by the organisation itself, to have violated the
above-mentioned undertakings; and

(ii) to publicise that member's expulsion and notify the

Commission thereof;

(iii) to make known to all its members all governmental
and KP certification scheme laws,
regulations and
guidelines regarding conflict diamonds and the names
of any natural or legal person found guilty, after legally
binding due process, of violating these laws and regu-
lations.

(c) provide to the Commission a complete list of all

including full names, addresses,
information which will contribute

members,
other
mistaken identities.

its
location and
to avoiding

circumstances

3. Where
the Commission may
require additional guarantees that an organisation is able to
maintain a credible system of warranties and industry self-regu-
lation.

justify,

4.
In accordance with the procedure referred to in Article
22(2), The Commission shall list in Annex V each organisation
that fulfils the requirements of this Article. It shall notify all
Community authorities of
relevant
particulars of the members of listed organisations.

the names and other

5.
Organisations covered by this Article shall immediately
notify the Commission of all changes in their membership
subsequent to the application for listing.

6.
A listed organisation or a member thereof shall provide
the Commission and the Community authority of a Member
State, in which it is resident or established with access to any
information that may be needed to assess the proper func-
tioning of the system of warranties and industry self-regulation.

If an assessment leads to the conclusion that an organi-
7.
sation or one of its members is breaching the provisions of this
Article,
in accordance with the
procedure referred to in Article 22(2), remove that organisation
from the list in Annex V.

the Commission shall,

CHAPTER V

TRANSIT

Article 18

Without prejudice to the controls provided for by customs
legislation and on condition that neither the container in
which rough diamonds are being transported nor the accom-
panying certificate issued by a Community authority or the
competent authority of a participant have been tampered
with and the seals on the container remain intact, Articles 3,
9 and 15 shall not apply to rough diamonds attested by the
accompanying certificate to be transiting the Community in the
course of export to another participant.

CHAPTER VI

GENERAL PROVISIONS

Article 19

A Community authority may ask an economic operator to pay
a fee for the producing, issuing and/or validating a certificate
and for a physical inspection in accordance with Articles 4 and
14. Under no circumstances shall
fee
exceed the costs incurred by that competent authority for the
operation concerned.

the amount of

that

No levies or similar duties shall be charged in relation to such
operations.

Article 20

1.
On the basis of information from Member States showing
their designated Community authorities can reliably,
that
timely, effectively and adequately fulfil the tasks required by
this Regulation,
the Commission shall maintain a list of
Community authorities and the tasks entrusted to them in
Annex III.

2.
On the basis of the relevant information from the chair
of the Kimberley Process and/or participants, the Commission
may list participants and the competent authorities they have
designated to issue and validate their certificates in Annex II.

Article 21

For the purposes of

the Kimberley
1.
Process and the
the KP certification
scheme, the European Community shall be a participant in
the KP certification scheme.

implementation of

the objectives of

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The

implementation of

European Commission, which represents

the
2.
Community in the Kimberley Process, shall aim to ensure
optimal
the KP certification scheme,
notably through cooperation with participants. To this end
in particular, exchange information
the Commission shall,
with participants on international trade in rough diamonds
and, where appropriate, cooperate in monitoring activities
and in the settlement of any disputes that may arise.

Article 22

1.
In the performance of its duties under Articles 6, 8, 15,
16, 17 and 20 the Commission shall be assisted by the
committee established under Article 8 of Council Regulation
(EC) No 2271/96.

reference

2. Where
the
management procedure laid down in Article 4 of Decision
1999/468/EC shall apply, in compliance with Article 7 thereof.

to this paragraph,

is made

The period laid down in Article 4(3) of Decision

3.
1999/468/EC shall be set at ten working days.

4.

The Committee shall establish its rules of procedure.

Article 23

The Committee referred to in Article 22 may examine any
question concerning the application of this Regulation. Such
questions may be raised either by the chairman or by a
representative of a Member State.

Article 24

1.
Any natural or legal person providing services directly or
indirectly related to the activities covered by Articles 3, 9, 11,
12, 17 or 18 of this Regulation shall exercise due diligence for
establishing that
the persons or entities involved in those
activities comply with the provisions of this Regulation.

The participation,

in
knowingly
2.
activities, the object or effect of which is, directly or indirectly,
to circumvent
this Regulation shall be
prohibited.

and intentionally,

the provisions of

Communication of such information shall be permitted where
the Commission is obliged or authorised to do so, in particular
in connection with legal proceedings. Such communication
must take into account the legitimate interests of the person
concerned that his or her business secrets should not be
divulged.

This Article shall not preclude the disclosure of general
information by the Commission. Such disclosure shall not be
permitted if this is incompatible with the original purpose of
such information.

In the event of a breach of confidentiality, the originator of the
information shall be entitled to obtain that it be deleted, disre-
garded or rectified, as the case may be.

Article 26

to be
Each Member State shall determine the sanctions
imposed where the provisions of this Regulation are infringed.
Such sanctions shall be effective, proportionate and dissuasive.

Pending the adoption, where necessary, of any legislation to
this end, the sanctions to be imposed where the provisions of
this Regulation are infringed, shall be those determined by the
Member States in order to give effect to Article 5 of Regulation
(EC) No 303/2002.

Article 27

This Regulation shall apply:

(a) within the geographical
including its airspace,

territory of

the Community,

(b) on board any aircraft or any vessel under the jurisdiction of

a Member State,

(c)

to any person elsewhere who is a national of a Member
State, and

(d) to any legal person, entity or body which is incorporated

or constituted under the law of a Member State.

The Commission shall be notified of any information
3.
suggesting that the provisions of this Regulation are being,
or have been, circumvented.

Article 25

Information supplied in accordance with this Regulation shall
only be used for the purposes for which it was provided.

Information which is by nature confidential or which is
provided on a confidential basis shall be covered by the obli-
gation of professional secrecy. It shall not be disclosed by the
Commission without
the person
providing it.

the express permission of

Article 28

This Regulation shall enter into force on the day of its publi-
cation in the Official Journal of the European Communities.

The Commission shall report annually to the Council on the
implementation of this Regulation and the need for a review of
the Regulation.

The application of Articles 3, 5, 9, 13 and 18 shall be
suspended until the Council decides to apply these Articles
on the basis of a proposal from the Commission.

This Regulation shall be binding in its entirety and directly
applicable in all Member States.

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ANNEX I

The Kimberley Process Certification Scheme

Kimberley Process Working Document No 1/2002

dd. 20 March 2002

ESSENTIAL ELEMENTS OF AN INTERNATIONAL SCHEME OF CERTIFICATION FOR ROUGH DIAMONDS, WITH A
VIEW TO BREAKING THE LINK BETWEEN ARMED CONFLICT AND THE TRADE IN ROUGH DIAMONDS

PARTICIPANTS,

PREAMBLE

RECOGNISING 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 governments, and the illicit traffic in, and proliferation of, armaments, especially
small arms and light weapons;

FURTHER RECOGNISING the devastating impact of conflicts fuelled by the trade in conflict diamonds on the
peace, safety and security of people in affected countries and the systematic and gross human rights
violations that have been perpetrated in such conflicts;

NOTING the negative impact of such conflicts on regional stability and the obligations placed upon states
by the United Nations Charter regarding the maintenance of international peace and security;

BEARING IN MIND that urgent international action is imperative to prevent the problem of conflict
diamonds from negatively affecting the trade in legitimate diamonds, which makes a critical contribution
to the economies of many of the producing, processing, exporting and importing states, especially
developing states;

RECALLING all of the relevant resolutions of the United Nations Security Council under Chapter VII of the
United Nations Charter, including the relevant provisions of Resolutions 1173 (1998), 1295 (2000), 1306
(2000), and 1343 (2001), and determined to contribute to and support the implementation of the
measures provided for in these resolutions;

HIGHLIGHTING the United Nations General Assembly Resolution 55/56 (2000) on the role of the trade in
conflict diamonds in fuelling armed conflict, which called on the international community to give urgent
and careful consideration to devising effective and pragmatic measures to address this problem;

FURTHER HIGHLIGHTING the recommendation in United Nations General Assembly Resolution 55/56 that
the international community develop detailed proposals for a simple and workable international certifi-
cation scheme for rough diamonds based primarily on national certification schemes and on inter-
nationally agreed minimum standards;

RECALLING that the Kimberley Process, which was established to find a solution to the international
problem of conflict diamonds, was inclusive of concerned stake holders, namely producing, exporting
and importing states, the diamond industry and civil society;

CONVINCED that the opportunity for conflict diamonds to play a role in fuelling armed conflict can be
seriously reduced by introducing a certification scheme for rough diamonds designed to exclude conflict
diamonds from the legitimate trade;

RECALLING that the Kimberley Process considered that an international certification scheme for rough
diamonds, based on national laws and practices and meeting internationally agreed minimum standards,
will be the most effective system by which the problem of conflict diamonds could be addressed;

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ACKNOWLEDGING the important initiatives already taken to address this problem, in particular by the
governments of Angola, the Democratic Republic of Congo, Guinea and Sierra Leone and by other key
producing, exporting and importing countries, as well as by the diamond industry, in particular by the
World Diamond Council, and by civil society;

WELCOMING voluntary self-regulation initiatives announced by the diamond industry and recognising that
a system of such voluntary self-regulation contributes to ensuring an effective internal control system of
rough diamonds based upon the international certification scheme for rough diamonds;

RECOGNISING that an international certification scheme for rough diamonds will only be credible if all
Participants have established internal systems of control designed to eliminate the presence of conflict
diamonds in the chain of producing, exporting and importing rough diamonds within their own territories,
while taking into account
that differences in production methods and trading practices as well as
differences in institutional controls thereof may require different approaches to meet minimum standards;

FURTHER RECOGNISING that the international certification scheme for rough diamonds must be consistent
with international law governing international trade;

ACKNOWLEDGING that state sovereignty should be fully respected and the principles of equality, mutual
benefits and consensus should be adhered to;

RECOMMEND THE FOLLOWING PROVISIONS:

S e c t i o n I

Definitions

of rough diamonds is leaving, and which are authorised to
validate the Kimberley Process Certificate;

For the purposes of the international certification scheme for
rough diamonds (hereinafter referred to as ‘the certification
scheme’), the following definitions apply:

FREE TRADE ZONE means a part of the territory of a Participant
where any goods introduced are generally regarded, insofar as
import duties and taxes are concerned, as being outside the
customs territory;

CONFLICT DIAMONDS means rough diamonds used by rebel
movements or their allies to finance conflict aimed at under-
mining legitimate governments, as described in relevant United
Nations Security Council
(UNSC) resolutions insofar as they
remain in effect, or in other similar UNSC resolutions which
may be adopted in the future, and as understood and
recognised in United Nations General Assembly (UNGA)
Resolution 55/56, or
similar UNGA resolutions
in other
which may be adopted in future;

COUNTRY OF ORIGIN means the country where a shipment of
rough diamonds has been mined or extracted;

COUNTRY OF PROVENANCE means the last Participant
where a shipment of
recorded on import documentation;

from
rough diamonds was exported, as

DIAMOND means a natural mineral consisting essentially of
pure crystallised carbon in the isometric system, with a
hardness on the Mohs (scratch) scale of 10, a specific gravity
of approximately 3,52 and a refractive index of 2,42;

EXPORT means the physical leaving/taking out of any part of
the geographical territory of a Participant;

IMPORT means the physical entering/bringing into any part of
the geographical territory of a Participant;

IMPORTING AUTHORITY means the authority(ies) or body(ies)
designated by a Participant into whose territory a shipment
of
import
formalities and particularly the verification of accompanying
Certificates;

imported to conduct all

rough diamonds

is

KIMBERLEY PROCESS CERTIFICATE means a forgery resistant
document with a particular
a
shipment of rough diamonds as being in compliance with
the requirements of the certification scheme;

format which identifies

OBSERVER means a representative of civil society, the diamond
international organisations and non-participating
industry,
in Plenary meetings;
invited to take part
governments
(Further consultations to be undertaken by the Chair.);

PARCEL means one or more diamonds that are packed together
and that are not individualised;

EXPORTING AUTHORITY means the authority(ies) or body(ies)
designated by a Participant from whose territory a shipment

PARCEL OF MIXED ORIGIN means a parcel that contains rough
diamonds from two or more countries of origin, mixed
together;

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PARTICIPANT means a state or a regional economic integration
organisation for whom the certification scheme is effective;
(Further consultations to be undertaken by the Chair.);

(b) with regard to shipments of rough diamonds imported

from a Participant:

REGIONAL ECONOMIC INTEGRATION ORGANISATION means an
organisation comprised of sovereign states that have transferred
competence to that organisation in respect of matters governed
by the certification scheme;

ROUGH DIAMONDS means diamonds that are unworked or
simply sawn, cleaved or bruted and fall under the Relevant
Harmonised Commodity Description and Coding System
7102 10, 7102 21 and 7102 31;

SHIPMENT means one or more parcels that are physically
imported or exported;

TRANSIT means the physical passage across the territory of a
Participant or a non-Participant, with or without transhipment,
warehousing or change in mode of
transport, when such
passage is only a portion of a complete journey beginning
and terminating beyond the frontier of
the Participant or
non-Participant across whose territory a shipment passes.

S e c t i o n I I

The Kimberley Process Certificate

Each Participant should ensure that:

— require a duly validated Certificate;

— ensure that confirmation of receipt is sent expeditiously
to the relevant Exporting Authority. The confirmation
should as a minimum refer to the Certificate number,
the number of parcels, the carat weight and the details
of the importer and exporter;

— require that the original of the Certificate be readily
accessible for a period of no less than three years;

(c) ensure that no shipment of rough diamonds is imported

from or exported to a non-Participant;

(d) recognise

that

Participants

through whose

territory
shipments transit are not required to meet the requirement
of paragraphs (a) and (b) above, and of Section II
(a)
provided that the designated authorities of the Participant
through whose territory a shipment passes, ensure that the
shipment
leaves its territory in an identical state as it
entered its territory (i.e. unopened and not tampered with).

S e c t i o n I V

Internal Controls

(a) a Kimberley Process Certificate (hereafter referred to as the
Certificate) accompanies each shipment of rough diamonds
on export;

Undertakings by Participants

Each Participant should:

(b) its processes for issuing Certificates meet the minimum
standards of the Kimberley Process as set out in Section IV;

the minimum requirements set out in
(c) Certificates meet
are met,
long as
requirements
Annex 1. As
Participants may at
their discretion establish additional
characteristics for their own Certificates, for example their
form, additional data or security elements;

these

(d) it notifies all other Participants through the Chair of the
for

its Certificate as specified in Annex 1,

features of
purposes of validation.

S e c t i o n I I I

(a) establish a system of internal controls designed to eliminate
the presence of conflict diamonds from shipments of rough
diamonds imported into and exported from its territory;

(b) designate an Importing and an Exporting Authority(ies);

(c) ensure that rough diamonds are imported and exported in

tamper resistant containers;

(d) as required, amend or enact appropriate laws or regulations
to implement and enforce the Certification Scheme and to
maintain dissuasive and proportional penalties for trans-
gressions;

Undertakings in respect of the international trade in rough
diamonds

Each Participant should:

(e) collect and maintain relevant official production,

import
and export data, and collate and exchange such data in
accordance with the provisions of Section V;

(a) with regard to shipments of rough diamonds exported to a
is accom-

Participant, require that each such shipment
panied by a duly validated Certificate;

(f) when establishing a system of internal controls, take into
account, where appropriate, the further options and recom-
mendations for internal controls as elaborated in Annex 2.

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Principles of Industry Self-Regulation

as

referred to in the Preamble of

Participants understand that a voluntary system of industry
self-regulation,
this
Document, will provide for a system of warranties underpinned
individual
through verification by independent auditors of
companies
set by
industry, which will help to facilitate the full traceability of
rough diamond transactions by government authorities.

and supported by internal penalties

S e c t i o n V

Co-operation and Transparency

Participants should:

— provide to each other through the Chair information ident-
ifying their designated authorities or bodies responsible for
implementing the provisions of this Certification Scheme.
Each Participant
should provide to other Participants
through the Chair information, preferably in electronic
format, on its relevant laws, regulations, rules, procedures
and practices, and update that information as required. This
should include a synopsis in English of the essential content
of this information;

— compile and make available to all other Participants
through the Chair statistical data in line with the principles
set out in Annex 3;

— exchange on a regular basis experiences and other relevant
information, including on self-assessment, in order to arrive
at the best practice in given circumstances;

— consider favourably requests from other Participants for
assistance to improve the functioning of the certification
scheme within their territories;

S e c t i o n V I

Administrative Matters

MEETINGS

1. Participants and Observers are to meet in Plenary annually,
as Participants may deem
the

in order to discuss the effectiveness of

and on other occasions
necessary,
certification scheme.

2. Participants should adopt Rules of Procedure for such

meetings at the first Plenary meeting.

3. Meetings are to be held in the country where the Chair is
located, unless a Participant or an international organi-
sation offers to host a meeting and this offer has been
accepted. The host
entry
formalities for those attending such meetings.

should facilitate

country

4. At the end of each Plenary meeting, a Chair would be
elected to preside over all Plenary meetings, and any ad
hoc working groups which might be formed, until the
conclusion of the next annual Plenary meeting.

5. Participants are to reach decisions by consensus. In the
event that consensus proves to be impossible, the Chair
is to conduct consultations.

ADMINISTRATIVE SUPPORT

6. For the effective administration of the certification scheme,
administrative support will be necessary. The modalities
and functions of that support should be discussed at the
first Plenary meeting, following endorsement by the UN
General Assembly.

7. Administrative
functions:

support

could include

the

following

(a) to serve as a channel of communication, information
sharing and consultation between the Participants with
regard to matters provided for in this Document;

— inform another Participant through the Chair if it considers
that the laws, regulations, rules, procedures or practices of
that other Participant do not ensure the absence of conflict
diamonds in the exports of that other Participant;

(b) to maintain and make available for the use of all
those laws, regulations,
and statistics notified

Participants a collection of
rules, procedures, practices
pursuant to Section V;

— cooperate with other Participants to attempt

to resolve
problems which may arise from unintentional circum-
the
stances and which could lead to non-fulfilment of
minimum requirements for the issuance or acceptance of
the Certificates, and inform all other Participants of the
essence of
the problems encountered and of solutions
found;

(c) to prepare documents and provide administrative
support for Plenary and working group meetings;

(d) to undertake such additional responsibilities as the
Plenary meetings, or any working group delegated by
Plenary meetings, may instruct.

— encourage,

through their
co-operation between law enforcement
between customs agencies of Participants.

relevant

authorities,

agencies

PARTICIPATION

closer
and

8. Participation in the certification scheme is open on a
global, non-discriminatory basis to all Applicants willing
and able to fulfill the requirements of that scheme.

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9. Applicants wanting to participate in the certification
scheme should signify this interest by notifying the Chair
through diplomatic channels. This notification should
include the information set forth in Section V, paragraph
(a) and be circulated to all Participants within one month.

10. Participants intend to invite representatives of civil society,
the diamond industry, non-participating governments and
international organizations
in Plenary
meetings as Observers.

to participate

PARTICIPANT MEASURES

11. Participants are to prepare, and make available to other
Participants, in advance of annual Plenary meetings of the
Kimberley Process, information as stipulated in paragraph
(a) of Section V outlining how the requirements of the
international certification scheme are being implemented
within their respective jurisdictions.

12. The agenda of annual Plenary meetings is to include an
item where information as stipulated in paragraph (a) of
Section V is reviewed and Participants can provide further
details of their respective systems at the request of the
Plenary.

dentiality regarding the issue and the discussions relating
to any compliance matter.

COMPLIANCE AND DISPUTE PREVENTION

16. In the event

that an issue regarding compliance by a
Participant or any other issue regarding the implemen-
tation of the certification scheme arises, any concerned
Participant may so inform the Chair, who is to inform
all Participants without delay about the said concern and
enter into dialogue on how to address it. Participants and
Observers should make every effort to observe strict confi-
dentiality regarding the issue and the discussions relating
to any compliance matter.

MODIFICATIONS

17. This document may be modified by consensus of

the

Participants.

18. Modifications may be proposed by any Participant. Such
proposals should be sent in writing to the Chair, at least
ninety days before the next Plenary meeting, unless
otherwise agreed.

13. Where further clarification is needed, Participants at
Plenary meetings, upon recommendation by the Chair,
can identify
verification
measures to be undertaken. Such measures are to be
implemented in accordance with applicable national and
international
law. These could include, but need not be
limited to measures such as:

decide on additional

and

(a) requesting additional
from Participants;

information and clarification

(b) review missions by other Participants or their represen-
indications of
are
international

tatives where
there
significant non-compliance with the
certification scheme.

credible

14. Review missions are to be conducted in an analytical,
the
expert and impartial manner with the consent of
Participant concerned. The size, composition,
terms of
these missions should be
reference and time-frame of
based on the circumstances and be established by the
Chair with the consent of the Participant concerned and
in consultation with all Participants.

15. A report on the

results of

compliance verification
measures is to be forwarded to the Chair and to the
Participant concerned within three weeks of completion
of the mission. Any comments from that Participant as
well as the report, are to be posted on the restricted
access section of an official certification scheme website
no later than three weeks after the submission of the
report
to the Participant concerned. Participants and
Observers should make every effort to observe strict confi-

19. The Chair

is

to circulate any proposed modification
expeditiously to all Participants and Observers and place
it on the agenda of the next annual Plenary meeting.

REVIEW MECHANISM

20. Participants

intend that

to conduct

thorough analysis of

the international certification
to allow
scheme should be subject to periodic review,
Participants
all
a
elements contained in the scheme. The review should
also include consideration of the continuing requirement
the
for such a scheme,
in view of
the perception of
organisations,
Participants,
in
particular the United Nations, of
the continued threat
posed at that time by conflict diamonds. The first such
review should take place no later than three years after
the effective starting date of the certification scheme. The
review meeting should normally coincide with the annual
Plenary meeting, unless otherwise agreed.

international

and

of

THE START OF THE IMPLEMENTATION OF THE SCHEME

21. The certification scheme should be established through an
international understanding as soon as possible, recog-
nizing the urgency of the situation from a humanitarian
and security standpoint. Those in a position to issue the
Kimberley process Certificates should do so immediately.
All others are encouraged to do so by 1 June 2002. It is
the intention of Participants to start the full
implemen-
tation simultaneously by the end of 2002. For Applicants
that decide to join the scheme after this date, it becomes
effective upon notification to the Chair pursuant to the
provision in Section VI, Paragraph 9.

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Annex 1

CERTIFICATES

A. Minimum requirements for Certificates

A Certificate is to meet the following minimum requirements:

— Each Certificate should bear the title ‘Kimberley Process Certificate’, the Kimberley Process logo and the following
‘The rough diamonds in this shipment have been handled in accordance with the provisions of the

statement:
Kimberley Process international certification scheme for rough diamonds’

— Country of origin for shipment of parcels of unmixed (i.e. from the same) origin

— Certificates may be issued in any language, provided that an English translation is incorporated

— Unique numbering with the Alpha 2 country code, according to ISO 3166-1

— Tamper and forgery resistant

— Date of issuance

— Date of expiry

— Issuing authority

— Identification of exporter and importer

— Carat weight/mass

— Value in USD

— Number of parcels in shipment

— Relevant Harmonised Commodity Description and Coding System

— Validation of Certificate by the Exporting Authority

B. Optional Certificate Elements

A Certificate may include the following optional features:

— Characteristics of a Certificate (for example as to form, additional data or security elements)

— Quality characteristics of the rough diamonds in the shipment

— A recommended import confirmation part should have the following elements:

Country of destination

Identification of importer

Carat/weight and value in USD

Relevant Harmonised Commodity Description and Coding System

Date of receipt by Importing Authority

Authentication by Importing Authority

C. Optional Procedures

— Rough diamonds may be shipped in transparent security bags.

— The unique Certificate number may be replicated on the container.

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RECOMMENDATIONS AS PROVIDED FOR IN SECTION IV, PARAGRAPH (f)

Annex 2

General Recommendations

1. Participants may appoint an official co-ordinator(s) to deal with the implementation of the certification scheme.

2. Participants may consider the utility of complementing and/or enhancing the collection and publication of the

statistics identified in Annex 3 based on the contents of Kimberley Process Certificates.

3. Participants are encouraged to maintain the information and data required by Section V on a computerised

database.

4. Participants are encouraged to transmit and receive electronic messages in order to support the certification scheme.

5. Participants that produce diamonds and that have rebel groups suspected of mining diamonds within their terri-
tories are encouraged to identify the areas of rebel diamond mining activity and provide this information to all
other Participants. This information should be updated on a regular basis.

6. Participants are encouraged to make known the names of individuals or companies convicted of activities relevant

to the purposes of the certification scheme to all other Participants through the Chair.

7. Participants are encouraged to ensure that all cash purchases of rough diamonds are routed through official banking

channels, supported by verifiable documentation.

8. Participants that produce diamonds should analyse their diamond production under the following headings:

— Characteristics of diamonds produced

— Actual production

Recommendations for Control over Diamond Mines

9. Participants are encouraged to ensure that all diamond mines are licensed and to allow only those mines so licensed

to mine diamonds.

10. Participants are encouraged to ensure that prospecting and mining companies maintain effective security standards

to ensure that conflict diamonds do not contaminate legitimate production.

Recommendations for Participants with Small-scale Diamond Mining

11. All artisinal and informal diamond miners should be licensed and only those persons so licensed should be allowed

to mine diamonds.

12. Licensing records should contain the following minimum information: name, address, nationality and/or residence

status and the area of authorised diamond mining activity.

Recommendations for Rough Diamond Buyers, Sellers and Exporters

13. All diamond buyers, sellers, exporters, agents and courier companies involved in carrying rough diamonds should

be registered and licensed by each Participant's relevant authorities.

14. Licensing records should contain the following minimum information: name, address and nationality and/or

residence status.

15. All rough diamond buyers, sellers and exporters should be required by law to keep for a period of five years daily
buying, selling or exporting records listing the names of buying or selling clients, their license number and the
amount and value of diamonds sold, exported or purchased.

16. The information in paragraph 14 above should be entered into a computerised database, to facilitate the presen-

tation of detailed information relating to the activities of individual rough diamond buyers and sellers.

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Recommendations for Export Processes

17. A exporter should submit a rough diamond shipment to the relevant Exporting Authority.

18. The Exporting Authority is encouraged, prior to validating a Certificate, to require an exporter to provide a

declaration that the rough diamonds being exported are not conflict diamonds.

19. Rough diamonds should be sealed in a tamper proof container together with the Certificate or a duly authenticated
copy. The Exporting Authority should then transmit a detailed e-mail message to the relevant Importing Authority
containing information on the carat weight, value, country of origin or provenance, importer and the serial number
of the Certificate.

20. The Exporting Authority should record all details of rough diamond shipments on a computerised database.

Recommendations for Import Processes

21. The Importing Authority should receive an e-mail message either before or upon arrival of a rough diamond
shipment. The message should contain details such as the carat weight, value, country of origin or provenance,
exporter and the serial number of the Certificate.

22. The Importing Authority should inspect the shipment of rough diamonds to verify that the seals and the container
have not been tampered with and that the export was performed in accordance with the certification scheme.

23. The Importing Authority should open and inspect the contents of the shipment to verify the details declared on the

Certificate.

24. Where applicable and when requested, the Importing Authority should send the return slip or import confirmation

coupon to the relevant Exporting Authority.

25. The Importing Authority should record all details of rough diamond shipments on a computerised database.

Recommendations on Shipments to and from Free Trade Zones

26. Shipments of rough diamonds to and from free trade zones should be processed by the designated authorities.

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Annex 3

STATISTICS

Recognising that reliable and comparable data on the production and the international trade in rough diamonds are an
essential tool for the effective implementation of the certification scheme, and particularly for identifying any irregu-
larities or anomalies which could indicate that conflict diamonds are entering the legitimate trade, Participants strongly
support the following principles, taking into account the need to protect commercially sensitive information:

(a) to keep and publish within two months of the reference period and in a standardised format, quarterly aggregate
statistics on rough diamond exports and imports, as well as the numbers of certificates validated for export, and of
imported shipments accompanied by certificates;

(b) to keep and publish statistics on exports and imports, by origin and provenance wherever possible; by carat weight
and value; and under the relevant Harmonised Commodity Description and Coding System (HS) classifications
7102 10; 7102 21; 7102 31;

(c) to keep and publish on a semi-annual basis and within two months of the reference period statistics on rough
diamond production by carat weight and by value. In the event that a Participant is unable to publish these statistics
it should notify the Chair immediately;

(d) to collect and publish these statistics by relying in the first instance on existing national processes and metho-

dologies;

(e)

to make these statistics available to an intergovernmental body or to another appropriate mechanism identified by
the Participants for (1) compilation and publication on a quarterly basis in respect of exports and imports, and (2)
on a semi-annual basis in respect of production. These statistics are to be made available for analysis by interested
parties and by the Participants,
individually or collectively, according to such terms of reference as may be
established by the Participants;

(f)

to consider statistical information pertaining to the international trade in and production of rough diamonds at
annual Plenary meetings, with a view to addressing related issues, and to supporting effective implementation of the
international certification scheme.

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List of participants in the Kimberley Process certification scheme and their duly appointed competent auth-
orities as referred to in Articles 1, 3, 18 and 21(2)

ANNEX II

. . . . . .

. . . . . .

List of Member States' competent authorities and their tasks as referred to in Articles 1
and 20(1)

ANNEX III

ANNEX IV

Community certificate as referred to in Article 2

1. The Community certificate referred to in Article 2 shall be:

(a) be printed on watermarked security paper with an intaglio border,

(b) measure 21 cm by 15 cm,

(c) contain red and green UV inks,

(d) have a unique number with the alpha-2 country code prescribed by ISO 3166-1,

(e) be tamper and forgery resistant,

(f) be printed in English and, where relevant, the language(s) of the Member State concerned.

2. Member States shall be responsible for having the forms printed. The forms may also be printed by printers
appointed by the Member State in which they are established. In the latter case, reference to the appointment by
the Member State must appear on each form. Each form shall bear an indication of the printer's name and address or
a mark enabling the printer to be identified.

C 20 E/120

EN

Official Journal of the European Communities

28.1.2003

28.1.2003

EN

Official Journal of the European Communities

C 20 E/121

List of diamond organisations implementing the system of warranties and industry self-regulation referred to
in Articles 11 and 17

ANNEX V

. . . . . .