U.S. DEPARTMENT OF THE TREASURY, OFFICE OF FOREIGN ASSETS CONTROL, ANNOUNCES TWO AMENDMENTS TO THE CLEAN DIAMOND TRADE ACT
Amendments Cover Data Collection
for the Import and Export of Rough
Diamonds in the U.S. to Support
Obligations Under The Kimberley Process
Officials from the U.S. State Department,
Customs and Border Protection, and Census
Bureau will be at JVC's Booth,
JCK Vegas, to Provide Guidance
New York City — May 21, 2008 — The Jewelers Vigilance Committee (JVC) has been notified that the Office of Foreign Assets Control (“OFAC”) of the U.S. Department of the Treasury announced today two important amendments to the Clean Diamond Trade Act that assist in the gathering of statistical data relating to import and export of rough diamonds in the U.S.
The first amendment emphasizes that Customs will not release a shipment of rough diamonds, regardless of value, without the formal entry documents (a “formal entry for consumption”) regardless of the value of the shipment. This amendment clarifies the already existing requirement for this documentation for imports, but makes clear that the documents are required for all shipments, including those under $2,500 in value.
The second amendment requires all rough diamond importers and exporters in the U.S. to file an annual report by April 1 of the year following the reported period. The report is filed via e-mail with the Office of the Special Advisor for Conflict Diamonds, U.S. Department of State. The first report for the calendar year 2007 is due on September 1, 2008.
The report should include contact information regarding the identity of the importer or exporter (name, address, telephone number, fax, and e-mail address) and the total amount of import/export activity for each of the three harmonized tariff codes (7102.10, 7102.21 and 7102.31) that cover rough diamonds for the year reported. This should include the total amount of carats of each classification of rough diamonds imported and exported, the total number of import and exported shipments and information on remaining stockpiles or rough diamonds as of the end of the reporting year, reported both in number of carats and approximate value.
The e-mail address for filing these reports is USKimberleyProcess@state.gov.
Failure to file the annual report can expose a rough diamond importer or exporter to a civil fine of $10,000 for each instance of non-compliance, or criminal penalties of up to $50,000 in fines and 10 years imprisonment.
Said Sue Saarnio, Special Advisor for Conflict Diamonds, U.S. Department of State: “The data contained in the annual reports filed by rough diamond traders is protected by U.S. privacy laws and will not be subject to disclosure. The new regulations will enhance our statistical data gathering and reporting for purposes of complying with our obligations under the Kimberley Process.”
Said Cecilia Gardner, President and CEO of the JVC and Director of the US Kimberley Process Authority, “This effort to improve the data gathered on imports and exports of rough diamonds will further strengthen the US industry’s efforts to end the trade in conflict diamonds.”
Sue Saarnio, Special Advisor for Conflict Diamonds, U.S. State Department, Vincent Dantone, Program Manager for Trade Policy Enforcement Programs, U.S. Customs and Border Protection and Kristen Nespoli, U.S. Census Bureau, will be at JVC’s booth, L-13, at the JCK Las Vegas show, Sands Expo and Convention Center, Sunday, June 1 and Monday, June 2, to provide guidance to rough diamond importers and exporters on the Kimberley Process and Clean Diamond Trade Act regulations.
Said Eli Izhakoff, Chairman and CEO, World Diamond Council, "Efforts to facilitate data collection of rough diamond trading in the US meet the industry's goals of improving international implementation of the Kimberley Process."
Watch JVC’s website, www.jvclegal.org, for more information about amendments to the Clean Diamond Trade Act and for JVC’s legal compliance products and services.
Jewelers Vigilance Committee, founded in 1917, is a not-for-profit legal trade association fulfilling its mission to maintain the jewelry industry’s highest ethical standards. JVC offers dispute mediation and arbitration services for trade and consumers, compliance monitoring and precious metals testing, among many other services. JVC, long considered the industry’s guardian of ethics and integrity, is a resource for the entire jewelry industry and its customers as well as an industry representative before government agencies, media and adjunct fields. For more information visit: www.jvclegal.org.
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