SoC Brings Change to DTC Sightholders

With the launch in July of “Supplier of Choice”, the DTC has this week confidentially advised applicants with regard to their future status as Sightholders.  All our Supplier of Choice customers, including Diamond Trading Company Sightholders, will be supplied under the new arrangements with effect from the July 2003 Sight.  Any existing clients who do not qualify as  Sightholders under Supplier of Choice will continue to be offered supplies by the DTC throughout 2003 in order that they are well positioned to meet their current supply commitments and to make alternative arrangements for future supply. 

It is clear that all clients should be able to conduct discussions with their business partners in their own time and on their own terms.  As a result, the DTC will not make any public comment on the details of its Sightholders’ status until early in 2004 when it plans to publish a Sightholder Directory.

However, it is worth noting:

¨      The DTC has assessed the applications of prospective and existing clients by applying rigorous and objective criteria under a process approved by the European Commission.

¨      Not qualifying for Sightholder status under Supplier of Choice is no criticism of a client’s business. The DTC holds those businesses in high regard.  Where the DTC will regrettably no longer be able to supply them, this has followed, in almost all cases, from competition for limited supplies of particular goods.  When goods are very popular and in relatively scarce supply, this necessarily impacts the number of diamantaires whom DTC is able to supply on a consistent basis. DTC hopes to be considering, in early 2005, applications from these clients for readmission as DTC Sightholders.

¨      The DTC believes that its dynamic and pro-competitive approach – under which new applications can be made every two years – represents a great opportunity for the many successful business models in our industry. The new list reflects this in that it includes a wide range of differing business models, including:

• Large global players
• Niche players
• Manufacturing orientated businesses with strong downstream operations
• Dealer orientated businesses with strong marketing orientated customers
• Businesses that use a full range of diamonds
• Businesses that are highly focused on specific goods
• Existing Sightholders
• Entities that are new to the Sightholder list
• Entities that are returning to the Sightholder list

What they have in common is a commitment to driving demand for diamonds, a passion for protecting the integrity of our unique product, a shared vision regarding the future of our industry and a track record of achievement.