Proposal for a Council Regulation amending for the second time Regulation (EC) No 2368/2002 implementing the Kimberley Process certification scheme for the international trade in rough diamonds
Date: 2003-02-06
Institutions: European Commission
Subjects: Community certification, Council of the European Union, EC Regulation, international trade, precious stones, trade restriction

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 6.2.2003
COM(2003) 53 final

2003/0018(ACC)

Proposal for a

COUNCIL REGULATION

amending for the second time Regulation (EC) No 2368/2002 implementing the
Kimberley Process certification scheme for the international trade in rough diamonds

(presented by the Commission)

1.

2.

3.

EXPLANATORY MEMORANDUM

The  Council  adopted  on  20  December  2002  Regulation  (EC)  No  2368/2002
implementing the Kimberley Process certification scheme for the international trade
in  rough  diamonds.  Article  29  (3)  of  this  Regulation  reads  “The  application  of
Articles 3, 4, 5,  10, 11, 12, 13, 14, 15  and  18 shall be suspended  until the Council
decides to apply these Articles on the basis of a proposal of the Commission.”

The  suspension  of  said  Articles  was  motivated,  inter  alia,  by  the  uncertainty
concerning the fulfilment of all requirements of the Kimberley Process certification
scheme by a number of participants, among them the European Community itself. In
particular the availability of the required secure Kimberley Process Certificates was
not  guaranteed  at  the  time  of  the  adoption  of  the  Regulation.  (The  Regulation
provides  that  interested  Member  States  shall  be  responsible  for  the  printing  and
issuing of the EC certificates).

Since then, the Commission has obtained sufficient evidence that those requirements
will be fulfilled by 1 February 2003. Therefore, the suspension of the applicability of
said Articles could be lifted by that date.

There  is  also  a  need  to  amend  the  Regulation  in  respect  of  the  definition  of
participants  in  the  Kimberley  Process  certification  scheme.  The  current  definition
does  not  allow  the  participation  in  the  scheme  of  all  states,  regional  economic
integration  organisations,  WTO-members  or  separate  customs  territories  that  fulfil
the requirements of the scheme. While consultations are ongoing under the aegis of
the chair  of the Kimberley  Process certification scheme, participants  have  accepted
that the trade ban contained in paragraph C of Section III of the document contained
in Annex I of  Regulation 2368/2002  shall not apply  in  respect of shipments to and
from rough diamonds trading entities that have been found by participants to fulfil all
requirements  of  the  Kimberley  Process  certification  scheme  and  that  have  notified
participants,  through  the  chair  of  the  Kimberley  Process,  accordingly.  This
acceptance  has  been  laid  down  in  a  Notice  from  the  chair  that  forms  part  of  the
official record of the Kimberley Process negotiations. It is a step in the right direction
of a definitive agreement ensuring the possibility for each WTO member that fulfils
the requirements of the Kimberley Process certification scheme to participate in the
scheme. This possibility should be properly reflected in the definition of participant
in the Regulation.

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2003/0018(ACC)

Proposal for a

COUNCIL REGULATION

amending for the second time Regulation (EC) No 2368/2002 implementing the
Kimberley Process certification scheme for the international trade in rough diamonds

THE COUNCIL OF THE EUROPEAN UNION,

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

Having regard to the proposal from the Commission1,

Whereas:

(1)

(2)

(3)

It is appropriate to ensure that the provisions established by Council Regulation (EC)
No  2368/2002  of  20  December  2002 
the  Kimberley  Process
certification  scheme  for  the  international  trade  in  rough  diamonds2  enable  all  WTO-
members fulfilling the requirements of the Kimberley Process certification scheme to
participate in the scheme. Therefore, the definition of participant set out in Article 2 of
that Regulation and the conditions governing the insertion into the list of participants
contained in Annex II to that Regulation should be amended.

implementing 

The  Community  and  all  other  participants  listed  in  Annex  II  to  Regulation  (EC)
No 2368/2002 have fulfilled the requirements of the Kimberley  Process  Certification
Scheme in such a manner that the full application of all provisions of that Regulation
will not lead to a serious disturbance of international trade in rough diamonds.

Sufficient  evidence  has  been  submitted  that  those  requirements  will  be  fulfilled  by
1 February  2003.  The  suspension  of  the  applicability  of  those  provisions  should,
therefore, be lifted from that date,

1

2

OJ C , , p. .
OJ L 358, 31.12.2002, p.28, as amended by Commission Regulation (EC) No …./2003.

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HAS ADOPTED THIS REGULATION:

Article 1

Regulation (EC) No 2368/2002 is amended as follows:

(1)

Point (c) of Article 2 is replaced by the following:

"  'Participant'  means  any  State,  regional  economic  integration  organisation,  WTO-
member  or  separate  customs  territory  that  fulfils  the  requirements  of  the  KP
certification scheme, has notified that fact to the Chair of the KP certification scheme
and is listed in Annex II;”

(2)

Article 20 is replaced by the following:

“Article  20.  On  the  basis  of  relevant  Information  provided  to  the  Chair  of  the  KP
certification  scheme  and/or  by  participants,  the  Commission  may  amend  the  list  of
participants and their competent authorities.”;

(3)

In Article 29, paragraph 3 is replaced by the following:

"3. Articles 3, 4, 5, 10, 11, 12, 13, 14, 15 and 18 shall apply from 1 February 2003.”

This  Regulation  shall  enter  into  force  on  the  day  following  that  of  its  publication  in  the
Official Journal of the European Communities.

Article 2

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

Done at Brussels,

For the Council
The President

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