Federal Law No ( 13 ) of 2004 Regarding Supervision of Import  Export and Transit of Rough Diamonds (economy and business law)

Article (1)  
In application of the provisions of this law, and unless otherwise requires, the following 
words and expressions shall have the meanings cited against them below:  
Country  : The United Arab Emirates.  
Ministry  : The Ministry of Economy and Commerce.  
Concerned 
Authority  : The Customs Authority in the Concerned Emirate.  
Kimberley : The International Certification Scheme, Concerning International  
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 Process   Trading of Rough Diamonds.  
Concerned Party 
of Participant  : Ministry of Economy and Commerce.  
Diamond  : The natural mineral consisting of crystallized carbon within the 
isometric system, characterized by relative resistance to scratch 
(10) and a specific gravity of about (3.52) and refractive index of 
(2.42).  
Rough Diamonds  : 
 Un-worked or simply sawn or split or trimmed diamonds, and 
fall under the Relevant Harmonized Commodity Description and 
Coding System Nos. (7102 -10), (7102- 21), (7102- 31) 
mentioned in Kimberley process.  
Conflict 
Diamonds  : Rough diamonds used by rebel movements or their allies to 
finance conflict aimed at destabilizing legitimate governments, 
per relevant applied International Security Council resolutions or 
any other resolutions the Council may adopt in the future, and in 
accordance with the United Nations General Assembly 
Resolution No (55/56) or any similar resolution the General 
Assembly may adopt in the future.  
Country of 
Origin  : The country where a shipment of rough diamonds has been 
mined or extracted.  
Country of 
Provenance  : The last participant country from where a shipment of rough 
diamonds was exported) as recorded on import documentation.  
Export  : Taking out of any part of the geographic territory of the country.  
Exporting 
Authority  : The authority designated by the participant from whose territory 
the rough diamond shipment shall leave and which is authorized 
to validate the Kimberley process certificate.  
Import  : Bringing into any part of the geographic territory of the country.  
Importing 
Authority  : 
 The authority or authorities designated by the participant into 
whose territory the rough diamond shipment shall be imported,  
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 and who completes all import procedures, particularly the 
verification of the attached Kimberley certificate.  
Country 
Certificate  : Kimberly process certificate issued by the concerned authority in 
the country.  
Kimberley 
Process 
Certificate  : A document resistant to abuse and forgery, with a special form 
which indicates that the rough diamond shipment meets the 
Kimberley process requirements . 
Parcel  : One or more parcel of diamonds which are packed together and 
not individually.  
Participant  : Any country or an international organization, or an 
un-independent region linked to a country, or a customs region 
to which the Kimberley Process applies.  
Shipment  : One or more parcels which are physically imported or exported.  
Transit  : The physical passage across the territory of the participant or 
non -participant, with or without transshipment or storing or 
changing means of transportation or otherwise, whereby such 
passage is only part of a complete journey, starting and ending 
beyond the frontiers of the participant or non -participant.  
Inspector  : The person assigned by the concerned party and relevant 
authority to act as a commissioner with regard to crimes 
committed by violating the provisions of this law, bylaws and 
decisions issued for the implementation of its provisions.  
 
Chapter Two  
 Powers of the Council of Ministers and the Minister

Article (2)  
Within the framework of the provisions of this law, the Minister is empowered to carry out 
the following : - 
1. Amending the list containing the participants in Kimberley process.   
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 2. Publishing the information contained in the applications submitted to obtain the country 
certificate or the information gathered during inspection, per the provisions of this law.  
3. Gathering, classifying and utilizing statistics, relating to country certificates and Kimberley certificates which are attached to diamond import into the country, for the purpose of analysis and study, or to exchange with other participants and to publish the number of 
those certificates.  
4. Identifying the prepared method or form to submit applications to obtain the certificate, 
authenticate it and identify its contents and its validity.  
5. Identifying the method, form and data which must be contained in the application submitted to the concerned authority, per the provisions of this law.  
6. Establishing the conditions to be met by containers used in import/export of rough diamonds.  
7. Identifying the records which must be maintained by individuals who import/export rough, diamonds.

Article (3)  
Entry and exit points for importing and exporting rough diamonds to and from the country shall be determined by a resolution from the Council of Ministers, per a proposal by the 
Minister.

Article (4)  
Due charges, regarding issuing, replacing or authenticating country certificates shall be determined by a resolution from the Council of Ministers, per a proposal by the minister.  
  
Chapter Three  
Regulation for Rough Diamond Import

Article (5)  
Import of rough diamonds into the country is prohibited unless the two following conditions 
are met:   
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 1. Import must be accompanied by Kimberley certificate, certified by the participant's 
concerned party and containing correct information.  
2. Rough diamonds must be imported in tamper resistant containers and duly sealed by the concerned party of the participant.

Article (6)  
The concerned authority must ensure not to tamper with the certificate before its authentication and to return it to the importer to maintain it, as it is considered a licence to 
acquire imported rough diamonds.

Article (7)  
The concerned authority must send the import receipt to the export party when necessary or 
when requested to do so.

Article (8)  
The concerned authority, per the provisions of this law, may order the individual who imported rough diamonds to return the diamonds to the participant, if it arrived into the 
country, accompanied by Kimberley certificate, but. in an opened cargo.

Article (9)  
The concerned authority must open the containers to ensure conformity with the data 
contained in Kimberley process certificate.

Article (10)  
1. If the concerned authority discovered the inaccuracy or unconformity of the cargo contents with Kimberley certificate, attached to the rough diamonds, the said authority must 
carry out the following:  
a- To confiscate the cargo immediately.  
b- To send the relevant information to the concerned party of the participant, which issued  
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 or authenticated the confiscated cargo certificate.  
2. If the matter is the result, of un -intended mistake, the concerned authority, in consultation 
with the concerned party of the participant which issued or authenticated the certificate, 
may correct the mistake and continue with the checking procedures.  
3. The concerned authority) which attached the cargo in other cases) must return the cargo 
to the concerned party in the country of origin) if it can be identified) otherwise the said 
authority must confiscate the cargo) auction it and transfer the proceeds) after deducting the sale cost) to the concerned party of the participant) to be used in enhancing the 
authentication system) contained in Kimberley process.

Article (11)  
No person - natural or juridical - is allowed to import or export rough diamonds to and from 
the country except through the entry or exit points identified thereby.  
  
Chapter Four  
Regulation for Rough Diamond Export

Article (12)  
Export of rough diamonds from the country is prohibited unless the two following 
conditions are met:  
1. Export must be accompanied by the country certificate, per the. requirements of 
Kimberley process.  
2. Export must be in tamper resistant containers and duly sealed by the concerned authority.

Article (13)  
1. The concerned authority, while authenticating the country certificate, must take the 
following into consideration:  
a- The exporter must submit concrete evidence that the rough diamonds, he intends to 
export, have been imported per the terms and conditions laid in this law, or that the 
diamonds were in the country prior to the issuance of this law.   
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 b- The data contained in the certificate are accurate and that the rough diamonds shall be 
exported to the participant in Kimberley process.  
c- The assigned charges for issuing the certificate must be collected.  
2. The concerned authority must not authenticate the certificate except after sealing the 
container which contains the rough diamonds.  
3. The concerned authority shall hand over the authenticated certificate to the exporter.

Article (14)  
When receiving the application to obtain the country certificate to export rough diamonds, 
the concerned authority may carry out the following : - 
1. Handing the certificate if the application meets the conditions laid in article (13) of this 
law.  
2. Notifying the applicant, in writing, about the reasons for an incomplete application. The executive bylaws of this law shall specify the period for completion of the application, 
during which it must be completed, otherwise it will be rejected.  
3. Rejecting the application which does not meet the conditions laid in article (13) of this 
law and notifying the applicant) identifying the reasons for rejection.

Article (15)  
The concerned authority may consider the statement signed by the exporter as concrete evidence that th e import of rough diamonds into the country is legal, if the exporter is a 
member in an organization which represents rough diamond traders, and which has contributed to establishing the system of warrantees and the self -regulation of the industry, 
for the purpose of executing Kimberley process, and it (the organization) is listed in the list prepared by the concerned party of the participant for this purpose. This statement must also contain the information contained in the invoice, per the terms and provisions 
mentioned in the bylaws and decisions issued in executing the provisions of this law.  
  
  
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Article (16)  
The concerned authority must attach the shipment of diamonds, intended for export, in case 
there is no concrete evidence that the conditions laid in articles (13) and (15) of this law are 
met.

Article (17)  
The concerned authority, before authenticating the certificate, must inspect the rough 
diamonds, intended for export, to ensure that they conform with the data contained in the 
certificate, particularly with regard to weight and value.  
  
Chapter Five  
Regulation for Rough Diamond Transit Outside the Country

Article (18)  
1. The concerned authority may attach rough diamonds in transit in the country if not 
accompanied by Kimberley certificate or are in an opened container.  
2. The concerned authority may order to return rough diamonds, crossing through the country and accompanied by Kimberley certificate, to the participant who issued the certificate if the diamonds arrive in an opened container.  
  
Chapter Six  
Self -Regulation of the Industry

Article (19)  
The organizations, which represent rough diamond traders and which contributed to the 
establishment of the system of warrantees and self - regulation of the industry for the 
purposes of executing Kimberley process, may submit an application to the Minister to be listed in the list prepared for this purpose, per the terms and provisions contained in the 
bylaws and decisions issued for the execution of the provisions of this law.  
   
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 Chapter Seven  
Disposing of Attached Items

Article (20)  
The commissioner - while attaching or seizing rough diamonds or any other related items - 
must identify the reasons which led him to attach or seize the diamonds.

Article (21)  
The attached rough diamonds or other related items may be kept at the place where they 
were attached or to be moved to a safer location..

Article (22)  
1. Taking into account the provision of item (3) of this article, it is not allowed to continue attaching the rough diamonds and other related items, after the concerned authority 
decides that the diamonds and these items do not violate the provisions of this law.  
2. It is not allowed to sue the owner or beneficiary (of rough diamonds), per the provisions 
of this law after the passage of (3) months from the date of attachment of the rough 
diamonds or other related items. The concerned authority, in this case, must return the 
diamonds or those items to the owner or the beneficiary at the time of attachment.  
3. If a lawsuit is submitted against the owner or the beneficiary, per the provisions of this law, it is then allowed to extend the attachment period of the rough diamonds or other 
related items until the completion of the court case. The owner or beneficiary may then 
approach the general prosecution or the court, requesting lifting of attachment.  
4. If the court finds the accused innocent, it may order that the attached rough diamonds or 
other related items be returned to the owner or beneficiary at the time of attachment.  
5. If the court finds the accused guilty, it may, in addition to any penalty it enforces per the 
provisions of this law, order the attachment of rough diamonds or other related items.  
  
 
  
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 Chapter Eight  
Penalties

Article (23)  
1. Without breaching any other stricter penalty, per any other law, a punishment by 
imprisonment for a period not exceeding (6) months, and a fine not exceeding One 
Hundred Thousand UAE Dirhams (AED 100,000), or either of the two punishments, shall 
apply to whoever brings or attempts to bring into the country or take outside the country, or 
attempts to take out of the country, by violating the provisions of this law, for the purpose of smuggling it, in addition to confiscating the rough diamonds and instrumentalities thereby 
and other items used in smuggling or are intended to be used thereof,  
2. It is not allowed to confiscate ships, whose load exceeds two hundred tons, or public 
transportation means and airplanes.  
3. The owner of the rough diamonds and attached items, or the person with whom the items 
are found, or the owner of transportation means shall be notified of the confiscation order. 
Whoever is concerned may appeal the order in front of the concerned court within thirty 
(30) days from the date of his formal notification thereof.

Article (24)  
Without breaching any other stricter penalty, per any other law, a punishment by 
imprisonment for a period not exceeding six (6) months and a fine not exceeding one 
hundred thousand UAE dirhams (AED 100.000), or either of the two punishments, shall 
apply to whoever : - 
1. Gave verbal or written or electronic incorrect information, regarding any data or other document for the purpose of obtaining a country certificate to export rough diamonds, while knowing that the information is incorrect.  
2. Submitted to the concerned authority, or used, while applying to obtain the country certificate, any statement or other document, which contains incorrect information, while aware of its incorrectness.  
3. Concealed any basic/important information with regard to any of the procedures, related  
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 to the country certificate.

Article (25)  
Except for the crimes stated in articles (23) and (24) of this law, a punishment by 
imprisonment for a period not exceeding one month and a five not exceeding Ten Thousand 
Dirhams (AED 10,000), or any of the two penalties, shall apply to whoever violates any 
other provision of the provisions of this law.

Article (26)  
It is not allowed to file a lawsuit or carry out any investigatory processes in crimes, which are 
committed by violating the provisions of this law, except through a written request from the 
concerned authority.

Article (27)  
The concerned authority has the right to waive the criminal law suit at any time before a 
final judgment is issued in its regard, and in case of numerous suspects, the waiver with 
regard to one suspect entails the rest of suspects.  
  
Chapter Nine  
Powers of the Commissioners of the Concerned Authority

Article (28)  
The Minister of Justice shall, in agreement with the Minister and in coordination with the 
Proper Authorities, issue a decree enumerating the employees possessing the capacity of 
Judicial Officers in the field of inspection, provided that among such employees shall be 
persons having experience in diamond with a view to verifying compliance with the application of the provisions of this Law, and such employees shall have the right to prove 
whatever occurs in violation of the provisions, regulations and decrees implementing this 
Law.  
   
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Article (29)  
The commissioner is particularly empowered to carry out the following : - 
1. To review the papers, scripts, records, correspondence, contracts and accounts of 
whichever nature, if they or related directly or indirectly to import and export of rough 
diamonds to and from the country, including commercial books, banking documents and 
computer systems. The commissioner may seize them when they are related to a crime 
committed by violating the provisions of this law.  
2. To enter and inspect any place or means of transportation -except homes - when the 
commissioner has reasons to believe that the rough diamonds, record, accounting book or 
document to which this law applies, is available at that place or instrumentality.  
3. To open any parcel or container when he has reasons to believe that they contain 
anything stated in the previous item (2 above).  
4. To examine rough diamonds, or other related items.  
5. To process and carry out analysis of rough diamonds, without affecting its value.  
6. To seize items related to rough diamond crimes, as well as means of transportation used 
in committing such crimes, except for public transportation means, airplanes and ships, 
whose registered loads exceed two hundred tons.  
7. To seek help from the general authority.  
  
Chapter Ten  
General Provisions

Article (30)  
The concerned party of the participants seeks to ensure the best execution of the international Kimberley process for authentication, regarding international trading in rough 
diamonds, particularly through cooperation with participants in this process. In order to 
achieve this goal, and without breaching communication channels followed in the country, 
the concerned party may exchange information with other participants, with regard to 
trading in rough diamonds and conflict diamonds, and cooperate with them in supervising 
the activities related to this trade.   
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Article (31)  
The concerned party of the participant maintains a database, regarding the judgments, 
issued by courts, with regard to crimes committed in violation of the provisions of this law.

Article (32)  
The implementation of the provisions of this law does not breach any of the customs procedures applied in the country .

Article (33)  
The Minister issues the bylaws and decisions, which are necessary for the execution of the provisions of this law.

Article (34)  
This law shall be published in the Official Gazette and shall come into force from the date of its publication.  
  
 
Zayed Bin Sultan AI Nahyan  
President of the United Arab Emirates  
 
Promulgated by us at the  Presidential Palace /Abu Dhabi  
On:  20/ 07 /2004  
 Hijri Georgian : 02 / Jumada 11/1425