Kimberley Process, What Should I Know?

What is the Kimberley Process?

The Kimberley Process is a system set up by the international diamond industry together with 52 countries and a number of Non-Governmental Organizations (NGO’s) to combat conflict diamonds. The system required certifying all rough diamonds and transporting them in sealed containers from January 1, 2003. The export and import of rough diamonds will be limited to countries that are members of the Kimberley Process.

Who does it apply to?

The Process applies to the entire diamond industry, specifically to those who are dealing with rough diamonds.

Does the Kimberley Process apply to polished?

While the scheme was set up to deal with rough diamonds, the World Federation of Diamond Bourses and the International Diamond Manufacturers Association recommend adding a ‘Conflict Free’ declaration stating that the origin of the polished diamonds in the package are from conflict-free rough. Keep in mind that US retailers are now demanding a ‘Conflict Free’ declaration.

How do I certify my rough diamonds / How do I export rough?

Every exporter has to certify his rough. In each country the certification process is done a little differently, though all have to add an official Kimberley certificate. Every member country will set up an authority or authorize a body to issue Kimberley Process certificates.

In Belgium the certification is carried out by the HRD. Diamantaires who wish to export rough will receive a Kimberley Process certificate from the HRD. The HRD will examine the contents of the package. There are no additional costs involved.

In Israel, The Diamond Controller's office is in charge of issuing the certificates. Diamantaires will receive the certificates from the designated clerk in the import/export room after paying the Israel Diamond Institute 80 NIS. The controller will stamp each certificate after the Government diamond evaluator has compared the contents of the package to the dollar value and carat weight stated on the certificate.

All exports will be sealed by the Controller in a numbered, secure envelope. The shipments will be accompanied by an invoice that will include the diamantaire's declaration.

In the USA the U.S. Kimberley Process Authority (USKPA) issues Kimberley Certificates, together with authorized couriers.

Export by all authorities in member countries will be allowed only to the member countries. All certificates will have the exporter details – bringing greater transparency to the diamond trade.

What should the invoice declaration state?

“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.”

How do I import rough?

Rough can be imported only from countries that are members of the Kimberley Process. All imports must be accompanied by an official Kimberley certificate issued by the exporting country.

Rough diamonds can be released only with the exporter's invoice and declaration.

The package has to arrive in a sealed and numbered secure envelope and contents of the package must match the official certificate.

Does the Kimberley Process apply to Industrial diamonds too?

Yes. All rough diamonds are subject to the Kimberley Process.

What should I do if I’m offered non-certified rough?

According to the Kimberley Process, you should not deal with these goods.

What about my rough stock from before January 1?

Kimberley Process is a forward-looking system. All rough stock existing on January 1, 2003 enjoy an ‘amnesty’. This means a blanket approval applicable to all pre-January 1, 2003 stock.

What if my goods are from mixed origin, all in one package?

That is OK. As long as the goods are all from legitimate sources not involved in funding conflict and in compliance with United Nations Resolutions, there is no problem.

What is the Code of Conduct adopted by the WFDB and IDMA?

The World Federation of Diamond Bourses (WFDB) and the International Diamond Manufacturers Association (IDMA) adopted a Code of Ethics at the London Congress in October 2002.

Code Of Conduct:

(i.) Not to buy any diamonds from firms that do not include the above statement on their invoices.

(ii.) Not to buy any diamonds from suspect or unknown sources of supply and/or that originate in countries that have not implemented the Kimberley Process International Certification Scheme.

(v.) Not to buy diamonds from any source that after a legally binding due process system has been found to have violated government regulations restricting the trade in conflict diamonds.

(iv.) Not to buy diamonds in or from any region that is subject to an advisory by a governmental authority that conflict diamonds are emanating from or are available for sale in such region unless such diamonds have been exported from such region in compliance with Kimberley Process requirements.

(v.) Not to knowingly buy or sell or assist others to buy or sell conflict diamonds.

(vi.) Assure that all company employees that buy or sell diamonds within the diamond trade are well informed regarding trade resolutions and government regulations restricting the trade in conflict diamonds.

What happens if I deal with non-certified rough?

Any diamond exchange member found dealing with non-certified diamonds will be expelled from the exchange. The WFDB and IDMA decided that “each member organization shall expel and publicize the expulsion of any members that (…) has been found to be in violation” of the resolutions.

Which countries are members of the Kimberley Process / With which countries am I allowed to trade rough?

As of December 31, 2002 the following countries are members of the Kimberley Process: Angola, Armenia, Australia, Botswana, Brazil, Burkina Faso, Canada, Central African Republic, Cote d’Ivoire, People’s Republic of China, Democratic Republic of Congo, Czech Republic, the European Community (Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Luxemburg, Netherlands, Portugal, Spain, Sweden, the United Kingdom), Gabon, Ghana, Guinea, Hong Kong, India, Israel, Japan, Republic of Korea, Laos, Lesotho, Mauritius, Mexico, Namibia, Norway, Philippines, Russian Federation, Sierra Leone, South Africa, Sri Lanka, Swaziland, Switzerland, Taiwan, Tanzania, Thailand, Ukraine, United Arab Emirates, United States of America, Venezuela, Vietnam, Zambia and Zimbabwe.

Several countries announced that they will be joining the Process during 2003. No doubt that as time goes by, more countries will join.

How much does it cost me?

In Belgium there are no additional costs, in Israel the charge is 80 NIS per certificate.

How can I tell an authentic certificate from a fake one?

The certificates have special security marks and watermarks. The authorized bodies will check the authenticity of the certificates.

What do I do if I have a manufacturing facility in a country that is not a member of the Kimberley Process?

You have a problem. As it stands, you will not be able to send them your rough. It’s recommended that you approach your local Governmental authority responsible for enforcing the Kimberley Process and ask them to help you out. They can help by approaching their counterparts in the relevant country.

Do I need to keep my certificates on file? For how long?

Yes, for three years.