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The 4 C's |
The
Kimberley Process |
Intriguing
Facts On Diamonds |
10 Things To Look For
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WHAT IS THE KIMBERLEY PROCESS? |
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The Kimberley
process started when Southern African diamond-producing states met
in Kimberley, South Africa, in May 2000, to discuss ways to stop
the trade in ‘conflict diamonds’ and ensure that diamond purchases
were not funding violence.
In December 2000, the United Nations General Assembly adopted a
landmark resolution supporting the creation of an international
certification scheme for rough diamonds. By November 2002,
negotiations between governments, the international diamond
industry and civil society organizations resulted in the creation
of the Kimberley Process Certification Scheme (KPCS) . The KPCS
document sets out the requirements for controlling rough diamond
production and trade. The KPCS entered into force in 2003, when
participating countries started to implement its rules.
Who is involved?
The Kimberley Process (KP) is open to all countries that are
willing and able to implement its requirements. As of November
2008, the KP has 49 members, representing 75 countries, with the
European Community and its Member States counting as an individual
participant. KP members account for approximately 99.8% of the
global production of rough diamonds. In addition, the World
Diamond Council, representing the international diamond industry,
and civil society organizations – Global Witness,
Partnership-Africa Canada – are participating in the KP and have
played a major role since its outset.
How does the Kimberley Process work?
The Kimberley Process Certification Scheme (KPCS) imposes
extensive requirements (*) on its members to enable them to
certify shipments of rough diamonds as ‘conflict-free’ and prevent
conflict diamonds from entering the legitimate trade. Under the
terms of the KPCS, participating states must meet ‘minimum
requirements’ and must put in place national legislation and
institutions; export, import and internal controls; and also
commit to transparency and the exchange of statistical data.
Participants can only legally trade with other participants who
have also met the minimum requirements of the scheme, and
international shipments of rough diamonds must be accompanied by a
KP certificate guaranteeing that they are conflict-free.
The Kimberley Process is chaired, on a rotating basis, by
participating countries. So far, South Africa, Canada, Russia,
Botswana, the European Community have chaired the KP, and India is
the Chair in 2008. KP participating countries and industry and
civil society observers gather twice a year at intercessional and
plenary meetings, as well as in working groups and committees that
meet on a regular basis. Implementation is monitored through
‘review visits’ and annual reports as well as by regular exchange
and analysis of statistical data.
(*)The requirements for participation are outlined in Sections II,
V (a) and VI (8,9) of the KPCS.
The Kimberley Process: unique and effective
The Kimberley Process Certification Scheme (KPCS) has evolved into
an effective mechanism for stemming the trade in conflict diamonds
and is recognized as a unique conflict-prevention instrument to
promote peace and security. The joint efforts of governments,
industry leaders and civil society representatives have enabled
the Kimberley Process (KP) to curb successfully the flow of
conflict diamonds in a very short period of time. Diamond experts
estimate that conflict diamonds now represent a fraction of one
percent of the international trade in diamonds, compared to
estimates of up to 15% in the 1990s. That has been the KP’s most
remarkable contribution to a peaceful world, which should be
measured not in terms of carats, but by the effects on people’s
lives.
The KP has done more than just stem the flow of conflict diamonds,
it has also helped stabilize fragile countries and supported their
development. As the KP has made life harder for criminals, it has
brought large volumes of diamonds onto the legal market that would
not otherwise have made it there. This has increased the revenues
of poor governments, and helped them to address their countries’
development challenges. For instance, some $125 million worth of
diamonds were legally exported from Sierra Leone in 2006, compared
to almost none at the end of the 1990s.
In 2006, a review of the KP confirmed its effectiveness, and
recommended a number of actions to further strengthen the system
in areas such as monitoring of implementation and strengthening
internal controls in participating countries, as well as greater
transparency in the gathering of statistical data. |
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WHAT ARE
CONFLICT DIAMONDS? |
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What are conflict
diamonds?
Conflict diamonds, also known as ‘blood’ diamonds, are rough diamonds
used by rebel movements or their allies to finance armed conflicts
aimed at undermining legitimate governments.
What is the Kimberley Process?
The Kimberley Process is an international certification scheme that
regulates trade in rough diamonds. It aims to prevent the flow of
conflict diamonds, while helping to protect legitimate trade in rough
diamonds.
The Kimberley Process Certification Scheme (KPCS) outlines the rules
that govern the trade in rough diamonds. The KPCS has developed a set
of minimum requirements that each participant must meet.
The KP is not, strictly speaking, an international organization: it
has no permanent offices or permanent staff. It relies on the
contributions – under the principle of ‘burden-sharing’ – of
participants, supported by industry and civil society observers.
Neither can the KP be considered as an international agreement from a
legal perspective, as it is implemented through the national
legislations of its participants.
Who is involved?
The Kimberley Process (KP) participants are states and regional
economic integration organizations that are eligible to trade in rough
diamonds. As of 21 September 2007, there are 48 participants
representing 74 countries, with the European Community counting as a
single participant. The participants include all major rough diamond
producing, exporting and importing countries.
The diamond industry, through the World Diamond Council, and civil
society groups (currently Global Witness and Partnership Africa
Canada) are also integral parts of the KP. These organizations have
been involved since the start and continue to contribute to its
effective implementation and monitoring.
What areas of the world are affected by conflict diamonds?
The only current case of rebel forces controlling diamond-producing
areas is in Côte d’Ivoire. These conflict diamonds constitute less
than 0.1% of the world’s production, according to estimates from the
Kimberley Process (KP) and the United Nations. The KP is working with
the United Nations and neighboring countries to stop these diamonds
entering the legal market.
There is now much greater stability in the other countries that have
previously suffered from conflicts funded in part by diamonds: Sierra
Leone, Angola, Liberia and the Democratic Republic of the Congo (DRC).
Of course, fragile situations still prevail, and no one should make
the mistake of losing interest just because the guns are silent.
The KP means that there is now the potential for the wealth created by
diamonds to contribute to peace and prosperity in these countries,
rather than conflict. There have been some promising results – 2006
was the DRC’s best year for diamond exports since the stones were
discovered 100 years ago. In Sierra Leone, legal exports have
increased 100-fold since the end of the war in 2002, bringing benefits
for the estimated 10% of the population who depend on the diamond
industry.
What is the difference between Kimberley Process participants
and observers?
Participants in the Kimberley Process (KP) are states or regional
economic integration organizations (currently the European Community)
that have met the minimum requirements of the Kimberley Process
Certification Scheme (KPCS) and are, therefore, eligible to trade in
rough diamonds with one another. The KPCS prohibits participants from
trading with non-participants. Participants are often referred to as
‘members’.
The current list of Kimberley Process participants.
Observers are industry and civil society groups involved in the KP.
These groups monitor the effectiveness of the certification scheme,
and provide technical and administrative expertise. There are
currently three main Kimberley Process observers: the World Diamond
Council, representing industry and Global Witness and Partnership
Africa Canada, representing civil society.
How do I know I am not buying a conflict diamond?
Although the Kimberley Process does not certify individual jewelers,
reputable businesses should only buy from suppliers that can guarantee
that their diamonds are conflict-free.
What can I, as a consumer, do?
Ultimately, the success of the Kimberley Process is in the hands of
consumers. We appreciate your effort to make sure that you are buying
certified diamonds.
The KP does not certify individual jewelers. However, a reputable
business should be able to answer the following questions:
How can I be sure your jewelry does not contain conflict
diamonds?
Do your diamond suppliers participate in the industry’s ‘System of
Warranties’*?
Can I see a copy of your company’s policy on conflict diamonds?
*The diamond industry has set up a 'System of Warranties' that
complements, but is distinct from, the Kimberley Process. Find out
more about the System of Warranties.
How does a country join the Kimberley Process?
A country must meet the minimum requirements of the Kimberley Process
(KP) as set out in the relevant sections of the Kimberley Process
Certification Scheme (KPCS) document, and submit its application to
the Chair, who then requests the participation committee to consider
it.
The KP has a mandate from the United Nations to be inclusive and, in
principle, all countries with a stake in the diamond business are
encouraged to join. Under the scheme’s requirements, KP participants
may only import or export rough diamonds to or from other
participants.
Where can I find more information on the KP?
Please have a look at the documents section on this website.
Especially recommended are the KPCS document itself and the third year
review that was published at the end of 2006. In addition, you could
visit the websites listed in the links section.
Is it possible to say where a rough diamond is from?
A number of researchers are working on different analytical techniques
that could enable them to determine where an individual stone comes
from. However, to date, there is no scientific consensus on the best
methods. The Kimberley Process relies on administrative controls to
track stones from mine to export, and subsequent trading.
The Kimberley Process (KP) is investigating the possibility of
detecting anomalies both from ‘footprinting’ (study of the overall
characteristics of production/exports) and ‘fingerprinting’
(identification of individual stones) and how these methods might
strengthen KP implementation.
My company wants to ensure it complies with Kimberley Process
requirements, what do we need to do?
Companies need a Kimberley Process (KP) certificate when they plan to
export rough diamonds from a participant country if the diamonds fall
under the relevant customs tariff (subheadings 7102.10, 7102.21 or
7102.31) in the schedule to the Customs Tariff. The exporting
authorities in both country of export and the destination country
require this certificate to verify that the exporter is meeting all KP
requirements.
The KP secretariat can help you in contacting the national KP
authorities in your country.
In order to strengthen the credibility of the agreement, the industry
body, the World Diamond Council proposed that the industry create and
implement a ‘System of Warranties’ for diamonds. Under this system,
which has been endorsed by all Kimberley Process participants, buyers
and sellers of both rough and polished diamonds must make the
following statement on all invoices:
“The diamonds herein invoiced have been purchased from legitimate
sources not involved in funding conflict and in compliance with United
Nations resolutions. The seller hereby guarantees that these diamonds
are conflict free, based on personal knowledge and/or written
guarantees provided by the supplier of these diamonds.”
Which HS codes fall under the Kimberley Process?
The KP governs production and trade in rough diamonds only (HS codes
7102.10, 7102.21 and 7102.31). For further information on these
classifications see the WCO website. Polished diamonds do not require
a Kimberley Process certificate.
Questions or uncertainties about HS codes should be raised first with
the national authorities of the exporting country. |
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