The Kimberley Process Certification @ Jewel Info 4 UBy:
Ms Nandita Ray
Summary: In 1998, an N.G.O. called Global Witness brought conflict
diamond issue to the world forum. Again in 2000, another group, Partnership
Africa Canada, brought the issue of "conflict diamonds" into focus once
more. They contended that certain rebel /terrorists were using the proceeds
from the sale of these diamonds to fund their wars.
The Kimberley Process Certification Act
Like Cleopatra, diamond has incited many wars. Some wars still rage on in
African countries, namely Sierra-Leone, Angola, Congo and Cote d'Ivoire. The
civilian life is full of strive and anguish. Millions of innocent civilians
have been and are being killed in the war. Rebel groups, terrorists,
unscrupulous agents and war lords fund these wars by seizing diamond mines
and selling the rough diamonds. The funds thus generated is used to de-
stabilize recognized governments and bring misery to the innocent public,
sometimes in the most in- humane way. National resources were and are
plundered and the government treasury of Africa is nearly empty. The
economic situation of many African countries is impeded due to this illicit
diamond trade. Human Rights abused. Moreover the proliferation of small arms
and light weapons is a cause of International concern as well as the safety
and welfare of the people of the war torn countries.
Kimberley Process Background
In 1998, an N.G.O. called Global Witness brought this issue to the world
forum. Again in 2000, another group, Partnership Africa Canada, brought the
issue of 'conflict diamonds' into focus once more. They contended that
certain rebel /terrorists were using the proceeds from the sale of these
diamonds to fund their wars. It was clear that 20% of the total world
diamond trade was made up of these diamonds. Joining them was many other
such Human rights group. They joined the movement to stop the sale of such
diamonds. Leading the way was U.S.A and the World diamond Council. It is
believed that UNITA rebels of Angola earned 3.7 billion $ by selling such
tainted diamonds to De Beers. The RUF of Sierra Leone also did the same. Al-Qaida
and other terrorist groups have used the diamond trade to launder money. In
order to stop the infiltration of these diamonds into legitimate diamond
trade, USA along with 52 other countries under the sponsorship of United
Nations is seeking ways to stop this run.
In 2000, the South African government convened a meeting in Kimberley. The
aim was to invite all concerned parties to deal with this threat, especially
the African countries, key in the conflict and victim to economic loss. Two
years after this meeting, in 2002, the concerned countries adopted a system
of self regulatory controls on the export and import of 'conflict diamonds'.
This is called the Kimberley Process Certification Scheme. This was adopted
in Interlaken Declaration in accordance with International trade rules. All
the participants were given six months to comply with the requisite
obligations but it was found that 24 countries could not qualify for
membership. In the first list there were 40 countries. Today there are 45
countries with China Taipei joining the group after fulfilling the three
step plan. It was simultaneously launched on January 1, 2003.
The Kimberley Process Certification scheme is code of conduct between the
members. It is an International Certification scheme which is based on
national laws of the member states, approved by the International Forum. It
consist of governmental controls designed to remove conflict
diamonds in the long run of mining, producing, exporting and importing rough
diamonds, within their control. This does not mean that the sovereignty of
any state is disrespected.
A 'conflict diamond' is a diamond that is used by the terrorist and rebels
to finance illegal war aimed at crippling the authorized government. It is
essential to differentiate between a conflict diamond and legitimate diamond
because it affects the International Diamond Industry.
Under KPSC, diamond trading is to be conducted between participants only.
Trade to be conducted only with those countries, companies/businesses that
have/give the certificate stating that the diamonds are 'conflict free' and
legally mined, traded or sold.
Members cannot do business with origins that are doubtful or have violated
governmental rules regarding KPSC and to prevent other countries from buying
or selling 'conflict diamonds'. Antwerp and Tel-Aviv are two important
channels for diamond trade. Each monitors the others movements and thus keep
check on each other. In 2004, Congo was excluded from the membership and
banned from diamond trading because it could not clarify the source of its
diamonds. It was accused of smuggling diamonds. The implication of the
scheme is simple. No
diamond can be sold in any form unless the seller gives in writing that the
diamonds are legally bought through authorized channels and are not 'blood
diamonds'.
The Certificate has some minimum conditions. It should:-
1. Be titled Kimberley Process Certificate
2. Have the following statement," The diamonds in the shipment have been
handled accordance with the KPCS for rough diamonds"
3. Name of the country of origin
4. The certificate can be issued in the national language of the country but
an English translation is mandatory
5. Unique numbering code that cannot be tampered with.
6. Tamper proof boxes, though transparent security bags can be used but the
unique code should be on it.
7. Date of issue and the date of expiry.
8. Issuing authority and validation of the certificate by the exporting
authority.
9. Number of parcels.
10. Carat weight of the diamonds.
11. value in USD.
12. Identification of the exporter and importer with their addresses.
13. The original certificate should be preserved for 3 to 5 years.
The people affected by this are the exporters, importers and shippers of
rough diamonds. It is essential to make a distinction between rough diamond
and diamond powder, as it is not under KPS jurisdiction. Also included are
jewelers, diamond mining and exploration companies, tool,
equipment and machinery manufacturers and cutting and polishing companies.
There are some general recommendations for the members of this Certification
Scheme. Each participant should guarantee that a KPC should escort every
shipment of rough diamonds that are being exported. The processing of the
KPSC under its territory should be according to international set standards.
For further safeguard, the participants can decree additional distinctive
features for their own
certificates. They should inform the other members of these safety features.
But this has to be channeled through the chair. Ensure that a confirmation
is sent immediately to the relevant exporting authority.
Make sure that the shipment that passes through its territory leaves as it
arrived...intact. Make sure that the cash purchases of rough diamonds are
routed through official or legal banking channels. All diamond mining
companies are licensed. And the licensing records should contain detailed
information and computerized.
There are some internal safety requirements for the members. Each member
country should have a designated Export and Import Authority.
They should collect and maintain relevant data in accordance with the KPSC.
The warranty that is needed for import and export of finished diamond goods
is issued under strict guidance. Companies etc who fail to comply with the
specification should be strictly dealt with. Criminal
proceedings can also be carried out or strict penalties imposed.
There should be transparency and traceability of all diamond transactions.
The members should also provide each other with statistical data.
Information on self assessment and other experiences on a regular basis.
Members should give consideration to requests from other members and help
out in special circumstances. Participants and observers to meet once a year
to review the effectiveness of the KPCS.
The meeting is to be held where the chair is located. A new chair to be
elected at the end of the term, at a plenary meeting. It has been decided
that the European Union is to be the new chair in
2007.The KPSC processes 90% of the global production of rough diamonds.
It is hoped that internal check along with faithful adherence to KPSC will
eradicate the menace of 'conflict diamonds' and bring relief to the war torn
countries. The work continues.
More Resources
http://web.amnesty.org/pages/ec-diamonds-eng
http://www.kimberleyprocess.com
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