Kimberly process

COUNCIL REGULATION (EC) No 2368/2002 of 20 December 2002 implementing the Kimberley Process certification scheme for the international trade in rough diamonds

The Kimberley Process is an international certification scheme that regulates trade in rough diamonds. It was launched by a coalition of governments, civil society and the diamond industry in response to the role rough diamonds play in funding some of the most devastating civil wars in Africa (so called „blood diamonds“).

The Kimberley Process sets out two main goals: to secure peace and security for the population in diamond-producing areas, and to make sure that the wealth created by diamonds contribute to peace and prosperity in these countries.

The Kimberley Process sets out requirements for participating States to control all imports and exports of rough diamonds. The Scheme puts in place rigorous internal controls over production and trade. Participating States can only legally trade with other participating States who have also met the minimum requirements of the Scheme, and international shipments of rough diamonds must be accompanied by a process Certificate guaranteeing that they are conflict-free.

WHO PARTICIPATES IN THE KIMBERLEY PROCESS?

The Kimberley Process (KP) is open to all countries that are willing and able to implement its requirements. As of 2 August 2013, the KP has 55 participants, representing 82 countries, with the European Union and its 28 Member States counting as a single participant, represented by the European Commission. KP members account for approximately 99.8% of the global production of rough diamonds.

HOW THE KIMBERLEY PROCESS WORKS?

The Kimberley Process (KP) is a binding agreement that imposes extensive requirements on every participant. The visible evidence of this commitment is The Kimberley Process Certification Scheme (KPCS) that both safeguards the shipment of ‘rough diamonds’ and certifies them as conflict free.

Under the terms of the Kimberley Process Certification Scheme (KPCS) participants must:

1)Satisfy ‘minimum requirements’ and establish national legislation, institutions and import/export controls

2) Commit to transparent practices and to the exchange of critical statistical dana

3) Trade only with fellow members who also satisfy the fundamentals of the agreement

4) Certify shipments as conflict-free and provide the supporting certification

IMPORT OF ROUGH DIAMONDS INTO THE EU

Article 3 provides: The import of rough diamonds into the Union shall be prohibited unless all of the following conditions are fulfilled:

(a) the rough diamonds are accompanied by a certificate validated by the competent authority of a participant (i.e. of the Kimberley Process);

(b) the rough diamonds are contained in tamper-resistant containers, and the seals applied at export by that participant are not broken;

Every import of rough diamonds must first be verified by a Union authority.

There are currently Union Authorities in:

	EU Certificate N°s:
	from	to
Belgium	900001	upwards
Germany	850001	860000
Czech Republic	860001	861000
Romania	861001	862000
Portugal	862001	863000
Ireland	863001	873000
Italy	873001	883000

If there is a Union authority in either the Member State where the rough diamonds are imported, or in the Member State for which they are destined the container(s) and certificate(s) should be submitted for verification, together and at the earliest opportunity, to the Union authority in either the importing or the destination Member State, as applicable.

If the above does not apply, then the importer can chose which Union authority it will submit the shipment and certificate to, for verification. As there is no Union authority in Croatia, the importer can choose any EU Union authority for verification.

LAW AND SUBORDINATE LEGISLATION

Commission implementing regulation (EU) 2018/578 of 13 April 2018 amending Council Regulation (EC) No.2368/2002 implementing the Kimberley Process certification scheme for the international trade in rough diamonds
http://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri=CELEX:32018R0578&from=HR

Council Regulation (EC) No 2368/2002 of 20 December 2002 implementing the Kimberley Process certification scheme for the international trade in rough diamonds:
http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:32002R2368&qid=1516358173847

Under Article 27 of the Regulation (EC) 2368/2002 each Member State shall determine the sanctions to be imposed where the provisions of this Regulation are infringed. Penal provisions for violations of Regulation (EC) 2368/2002 are provided in the Law on amendments of the Law on Trade (OG 68/2013).

COMMISSION IMPLEMENTING REGULATION (EU) 2020/2149 of 9 December 2020 amending Council Regulation (EC) No 2368/2002 implementing the Kimberley Process certification scheme for the international trade in rough diamonds, in order to add Italy as a Union authority and to take into account the withdrawal of the United Kingdom from the Union was published on the pages of the Official Journal of the EU on 18 December 2020. In accordance with Article 2 of this Regulation, it shall enter into force on the day following that of its publication in the Official Journal of the European Union, and shall apply from 1 January 2021.

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). Polished diamonds do not require a Kimberley Process certificate.

A practical guide for Kimberley Process Participants and companies involved in trade in rough diamonds with the EU:
https://eeas.europa.eu/sites/eeas/files/guidelines-on-trading-with-the-european-community-012015_en.pdf