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


The U.S. Department of the Treasury announced 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.” 

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.

For information about the Kimberley Process and Clean Diamond Trade Act, visit: www.state.gov/e/eeb/diamonds or http://www.kimberleyprocess.com/.
 
Jewelers Vigilance Committee
Does Not Provide Any Form Of Legal Advice.
Copyright © 2006 Jewelers Vigilance Committee · Contact JVC