India Allows Import of Marange Shipment Under Disputed KP Permission

KP appointed monitor Abbey Chikane (above) approved exports of Marange goods, sating the stage for international trading confusion

(IDEX Online News) – The Indian government has finally approved the import of rough diamonds from Zimbabwe’s Marange field, collectively worth $160 million, that had been bought by Indian dealers under a certificate issued by the then Kimberley Process (KP) monitor, Abbey Chikane in November 2010.

The goods had been shipped to Dubai, where they were impounded in a free zone while authorities sought a clarification from the KP. Other KP member states had decried the KP monitor’s permission, saying it did not have the okay of the Working Group on Monitoring (WGM).

The goods were subsequently released for shipment by the Dubai authorities after the UAE authorities pressured the WGM gave, which a nod of approval in the minutes of a June meeting, but did not issue a statement approving the exports.

Consequently, the first parcels of these goods that were sent to India were impounded by Indian customs, who sought a clear mandate from the Indian government on the issue. Meanwhile, the remaining goods were kept on in Dubai’s free zone.

The Indian dealers, with India’s Gem & Jewellery Export Promotion Council (GJEPC) support, represented to the government that it was unfair to hold them liable as they had bought the goods on what was, at the time, legitimate KP permission.

GJEPC Vice Chairman Sanjay Kothari confirmed to IDEX Online that the government had approved the import of these goods. He further confirmed that customs authorities had acknowledged the government order and that the process of releasing the impounded parcels had begun.

While the KP position on Zimbabwe’s Marange fields remains unclear today, the Indian government’s okay puts an end to a nine-month-long saga for these 14 parcels.