Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL amending Council Regulation (EC) No 2368/2002 as regards the inclusion of Greenland in implementing the Kimberley Process certification scheme
Date: 2013-06-18
Institutions: European Commission
Subjects: EU Member State, Greenland, export licence, import licence, international trade, movement certificate, overseas countries and territories, precious stones, trade restriction

EUROPEAN 
COMMISSION 

Brussels, 18.6.2013  
COM(2013) 427 final 

2013/0198 (COD) 

Proposal for a 

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

amending Council Regulation (EC) No 2368/2002 as regards the inclusion of Greenland 
in implementing the Kimberley Process certification scheme  

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EXPLANATORY MEMORANDUM 

1. 

CONTEXT OF THE PROPOSAL 

This proposal aims at enabling Greenland to participate in the Kimberley Process certification 
scheme on rough diamonds through its cooperation with the European Union. The scheme set 
out in the proposal would allow for the import and export of rough diamonds from Greenland 
to  the  Union  as  well  as  to  other  participants  of  the  certification  scheme,  provided  that  all 
imports  and  exports  of  rough  diamonds  are  verified  and,  for  exports,  certified  by  Union 
authorities pursuant to the rules set out in Regulation (EC) No 2368/2002 implementing the 
Kimberley Process certification scheme for the international trade in rough diamonds.  

This  association  would  strengthen  economic  relations  between  the  European  Union  and 
Greenland  in  the  diamond  industry,  and  in  particular  it  would  enable  Greenland  to  export 
rough  diamonds  accompanied  by  the  European  Union  Certificate  issued  for  the  purposes  of 
the certification scheme, with a view of promoting the economic development of Greenland. 

2. 

RESULTS OF CONSULTATIONS WITH THE INTERESTED PARTIES AND 
IMPACT ASSESSMENTS 

Greenland and Denmark has agreed to the approach taken by the proposal and will undertake 
to transpose and implement in the legislation applicable to Greenland the relevant provisions 
of Regulation (EC) No 2368/2002 as regards the conditions and formalities for importing and 
exporting rough diamonds, their transit to a participant other than the Union, the participation 
of the Union, including Greenland, in the Kimberley Process certification scheme, obligations 
relating  to  due  diligence,  anti-circumvention,  exchange  of  information,  and  ensuring 
compliance with such provisions. 

3. 

LEGAL ELEMENTS OF THE PROPOSAL 

The legal basis of the proposal is Article 207. The proposal extends the territory of the Union 
to also cover the territory of Greenland for the purposes of the Kimberley Process certification 
scheme.  Accordingly,  Greenland  will  be  prohibited  to  accept  imports  or  exports  of  rough 
diamonds to or from outside of the territory of the Union without a valid Kimberley Process 
(KP)  certificate.  The  amendments  will  allow  for  the  export  of  rough  diamonds  from 
Greenland  to  third  countries  as  long  as  they  are  accompanied  by  an  EU  KP  certificate.  The 
conditions  for  certification  previously  required  evidence  that  the  rough  diamonds  were 
lawfully imported into the Union. For diamonds mined and extracted in Greenland that have 
never been exported before, an alternative condition is introduced by this proposal, notably to 
demonstrate proof in this regard.  

In  addition,  the  proposal  sets  out  the  modalities  of  submitting  rough  diamonds  to  Union 
authorities  for  verification,  extends  the  special  rules  for  transit  to  Greenland,  enables 
Greenland's  participation  in  the  Committee  for  the  implementation  of  the  Regulation  and 
enables  Greenland's  representation  in  the  Kimberley  Process  and  cooperation  with  other 
Member States through the Commission. 

The  proposal  is  closely  connected  to  a  proposal  for  a  Council  Decision  setting  out  specific 
rules for the circulation of rough diamonds between the Union and Greenland. As proposed in 
this  Decision,  the  main  requirements  for  rough  diamonds  to  enter  or  leave  the  territory  of 
Greenland  or  the  Union  would  be  to  (i)  be  accompanied  by  some  form  of  an  official 
document,  either  a  document  attesting  that  they  were  mined  in  Greenland,  or  a  copy  of  a 

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Kimberley Process certificate as validated by a Union authority, and (ii) be in sealed tamper-
resistant containers.  

As proposed in this Decision, rough diamonds mined or extracted in Greenland, provided that 
they  have  not  been  exported  previously  to  a  third  country,  may  enter  the  Union’s  customs 
territory by the use of an attesting document issued by authorities in Greenland. Once rough 
diamonds mined or  extracted in Greenland had been exported to a  third country, upon their 
return they may circulate between the Union and Greenland according to the same rules that 
apply to all other rough diamonds imported into the Union. 

The  application  of  the  Decision  is  proposed  to  align  with  the  entry  into  force  of  this 
amendment.  

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2013/0198 (COD) 

Proposal for a 

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

amending Council Regulation (EC) No 2368/2002 as regards the inclusion of Greenland 
in implementing the Kimberley Process certification scheme  

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  on  the  Functioning  of  the  European  Union,  and  in  particular 
Article 207 thereof, 

Having regard to the proposal from the European Commission, 

After transmission of the draft legislative act to the national Parliaments, 

Acting in accordance with the ordinary legislative procedure, 

Whereas: 

(1) 

(2) 

(3) 

(4) 

(5) 

Regulation  (EC)  No  2368/2002  implementing  the  Kimberley  Process  certification 
scheme for the international trade in rough diamonds1 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. 

Greenland  is  not  part  of  the  Union  territory  but  it  is  included  in  the  list  of  overseas 
countries and territories set out in Annex II to the Treaties. In accordance with Article 
198  of  the  Treaty  on  the  Functioning  of  the  European  Union,  the  purpose  of  the 
association of the overseas countries and territories with the Union is to promote the 
economic  and  social  development  of  the  overseas  countries  and  territories  and  to 
establish close economic relations between them and the Union as a whole. 

Council  Decision  [...]  sets  out  the  rules  and  procedures  enabling  Greenland's 
participation  in  the  Kimberley  Process  certification  scheme  on  rough  diamonds 
through  its  cooperation  with  the  European  Union.  This  association  would  strengthen 
economic  relations  between  the  European  Union  and  Greenland  in  the  diamond 
industry,  and  in  particular  it  would  enable  Greenland  to  export  rough  diamonds 
accompanied  by  the  European  Union  Certificate  issued  for  the  purposes  of  the 
certification  scheme,  with  a  view  to  promoting  the  economic  development  of 
Greenland. 

Regulation (EC) No 2368/2002 should be amended in order to enable this Decision to 
enter  into  force  and  in  particular  to  provide  for  the  inclusion  of  Greenland  in  the 
certification scheme.  

Accordingly,  Greenland  will  be  prohibited  to  accept  imports  or  exports  of  rough 
diamonds  to  or  from  a  participant  other  than  the  Union  without  a  valid  Kimberley 
Process certificate. The amendments will allow for the export of rough diamonds from 
Greenland  to  third  countries  as  long  as  they  are  accompanied  by  a  European  Union 
Kimberley Process certificate.  

1 

OJ L 358, 31.12.2002, p. 28. 

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(6) 

(7) 

To the existing condition for certification requiring evidence that the rough diamonds 
were lawfully imported into the Union, an alternative condition should be introduced 
for diamonds mined an extracted in Greenland that have never been exported before, 
notably to demonstrate proof in this regard.  

In  addition,  amendments  should  be  made  to  the  modalities  of  submitting  rough 
diamonds to Union authorities for verification, extending the special rules for transit to 
Greenland,  enabling  Greenland's  participation 
the 
implementation of the Regulation and providing for Greenland's representation in the 
the 
Kimberley  Process  and  cooperation  with  other  Member  States 
Commission. 

the  Committee 

through 

for 

in 

(8) 

Regulation (EC) No 2368/2002 should therefore be amended accordingly, 

HAVE ADOPTED THIS REGULATION: 

Article 1 

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

(1) 

Article 1 is replaced by the following: 

"Article 1 

This  Regulation  sets  up  a  Union  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  territory  of  the  Union  and  that  of 
Greenland shall be considered as one entity without internal borders. 

This  Regulation  does  not  prejudice  or  substitute  any  provisions  in  force  relating  to 
customs formalities and controls. " 

(2) 

In Article 3, the introductory phrase is replaced by the following: 

"The import of rough diamonds into the territories of the Union or Greenland shall be 
prohibited unless all of the following conditions are fulfilled:" 

(3) 

In Article 4, paragraph 1 is replaced by the following: 

"1. Containers and the corresponding certificates shall without delay be submitted for 
verification together, to a Union authority either in the Member State where they are 
imported  or  in  the  Member  State  for  which  they  are  destined,  as  indicated  in 
accompanying documents. Containers destined for Greenland shall be submitted for 
verification to one of the Union authorities, either in the  Member State  where they 
are  imported,  or  in  one  of  the  other  Member  States  where  a  Union  authority  is 
established."  

(4) 

In Article 8, paragraph 1 is replaced by the following: 

"1.  The  Commission  shall  consult  participants  on  the  practical  arrangements  for 
providing  the  competent  authority  of  the  exporting  participant  that  has  validated  a 
certificate with confirmation of imports into the Union territory or Greenland." 

(5) 

In Article 11, the introductory phrase is replaced by the following: 

"The export from the territories of the Union or Greenland of rough diamonds shall 
be prohibited unless both of the following conditions are fulfilled:" 

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(6) 

In Article 12(1), point (a) is replaced by the following: 

"(a) the exporter has provided conclusive evidence that:  

(i) the rough diamonds for which a certificate is being requested were lawfully 
imported in accordance with the provisions of Article 3; or 

(ii) the rough diamonds for which a certificate is being requested were mined 
or extracted in Greenland in case the rough diamonds have not been previously 
exported to a participant other than the Union."  

(7) 

Article 18 is replaced by the following: 

"Article 18 

Articles  4,  11,  12,  and  14  shall  not  apply  to  rough  diamonds  which  enter  the 
territories of the Union or Greenland solely for the purposes of transit to a participant 
outside  those  territories,  on  condition  that  neither  the  original  container  in  which 
rough  diamonds  are  being  transported  nor  the  original  accompanying  certificate 
issued  by  a  competent  authority  of  a  participant  have  been  tampered  with  at  entry 
into and exit from the territories of the Union or Greenland and the transit purpose is 
clearly attested by the accompanying certificate." 

(8) 

Article 21 is replaced by the following: 

"Article 21 

1.  The  Union,  including  Greenland,  shall  be  a  participant  in  the  KP  certification 
scheme.  

2.  The  Commission,  which  represents  the  Union,  including  Greenland,  in  the  KP 
certification  scheme,  shall  aim  to  ensure  optimal  implementation  of  the  KP 
certification scheme, in particular through cooperation with participants. To this end, 
the  Commission  shall,  in  particular,  exchange  information  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." 

(9) 

Article 23 is replaced by the following: 

"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 or Greenland."  

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

Article 2 

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

Done at Brussels,  

For the European Parliament 
The President 

For the Council 
The President 

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