Conflict Diamonds
Facts About the Campaign To Eliminate Conflict Diamonds
There has been a major breakthrough in the campaign to eliminate the traffic in “conflict diamonds.” All of the nations with significant involvement in the diamond trade have agreed on a global certification system aimed at preventing criminals from insinuating contraband diamonds mined in African combat zones into the legitimate supply chain. To supplement this government effort, industry leaders have created a voluntary self-regulation programme.
We at Otley Jewellers welcome this important development and are very actively supporting the new system designed to safeguard our products’ integrity. This fact sheet describes highlights of the comprehensive system taking effect 1st January 2003.
Role of Governments
Fifty-two countries have adopted a system to control the export and import of rough diamonds minded from 1st January 2003 onward. Known as the Kimberley Process Certification Scheme, it requires that each shipment of rough diamonds – before stones are cut and polished – be in a tamper-resistant container and accompanied by a government-validated certificate. Each certificate is uniquely numbered and contains data describing the shipment’s contents.
Participating countries have pledged to turn back or impound shipments of rough diamonds from any nation that fails to subscribe to the new standards. Shipments lacking proper certification will be treated in a similar way. The Government Diamond Office is responsible for enforcement in the United Kingdom.
In the past, the legitimate supply chain was most vulnerable to exploitation between the time diamonds were mined in African combat zones and the time they were exported from the country of origin. Under the new system that problem is addressed as rough diamonds are packaged with a certificate of origin soon after they are mined. At later stages of the diamonds’ journey to market, rough diamonds also carry a certificate describing the shipment’s contents and confirming that the stones are coming from a Kimberley Process participant. Any country declining to participate is effectively barred from the international diamond trade.
Role of Industry
To supplement the government programme, the International Diamond Manufacturers Association (IDMA) and the World Federation of Diamond Bourses (WFDB) – representing virtually all significant processors and traders – have established a regimen of self-regulation. Its principal element is a system of warranties that will accompany invoices covering the sale of rough diamonds, polished diamonds and diamond jewellery. The requirement applies to rough diamonds mined after 31 st December 2002 and product fabricated from them.
Each time the diamonds change hands, the seller affirms to the buyer, in writing, that the diamonds come from legitimate sources “not involved in funding conflict [and] in compliance with United Nations resolutions…” Under a new code of conduct adopted by IDMA and WFDB, members are required, among other things, to deal only with sellers that use the warranty system.
Retailers who support the Kimberley Process must buy diamonds from dealers and manufacturers that adhere to the warranty system. At Otley Jewellers this policy is being followed. We are notifying/have notified all of our suppliers of diamonds and diamond jewellery that merchandise we buy that is derived from rough diamonds mined after 31 st December 2002 must be accompanied by a warranty. This warranty assures us that the supplier vouches for the legitimacy of the merchandise and that the supplier, in turn, has required the same warranty from their source of merchandise.
Between the government’s certification programme and the industry’s warranty system, Otley Jewellers' customers can have a very high degree of confidence that the worldwide supply chain is protected from the introduction of additional conflict diamonds. The new system’s effectiveness will be monitored. Participants agree that if experience indicates improvements are needed, they will be made.
www.kimberleyprocess.com
Otley Jewellers Supports the Kimberley Process
States and regional economic integration organizations who have met the minimum requirements of the Kimberley Process Certification Scheme are:
(as of 08/05/2007)
1. Angola
2. Armenia
3. Australia
4. Bangladesh
5. Belarus
6. Botswana
7. Brazil
8. Canada
9. Central African Republic
10. China, People's Republic of
11. Congo, Democratic Republic of
12. Cote D' Ivoire
13. Croatia
14. European Community
15. Ghana
16. Guinea
17. Guyana
18. India
19. Indonesia
20. Israel
21. Japan
22. Korea, Republic of
23. Lao, Democratic Republic of
24. Lebanon
25. Lesotho
26. Liberia
27. Malaysia
28. Mauritius
29. Namibia
30. New Zealand
31. Norway
32. Russian Federation
33. Sierra Leone
34. Singapore
35. South Africa
36. Sri Lanka
37. Switzerland
38. Tanzania
39. Thailand
40. Togo
41. Ukraine
42. United Arab Emirates
43. United States of America
44. Venezuela
45. Vietnam
46. Zimbabwe
NOTE: The rough diamond-trading entity of Chinese Taipei has also met the minimum requirements of the KPCS.
