Clean Diamond Trade Act 2003

117 STAT. 631 PUBLIC LAW 108–19—APR. 25, 2003
Public Law 108–19
108th Congress
An Act
To implement effective measures to stop trade in conflict diamonds, and for other
purposes.
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled ,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Clean Diamond Trade Act’’.
SEC. 2. FINDINGS.
Congress finds the following:
(1) Funds derived from the sale of rough diamonds are
being used by rebels and state actors to finance military activi-ties, overthrow legitimate governments, subvert internationalefforts to promote peace and stability, and commit horrifyingatrocities against unarmed civilians. During the past decade,more than 6,500,000 people from Sierra Leone, Angola, andthe Democratic Republic of the Congo have been driven fromtheir homes by wars waged in large part for control of diamondmining areas. A million of these are refugees eking out amiserable existence in neighboring countries, and tens of thou-sands have fled to the United States. Approximately 3,700,000people have died during these wars.
(2) The countries caught in this fighting are home to nearly
70,000,000 people whose societies have been torn apart notonly by fighting but also by terrible human rights violations.
(3) Human rights and humanitarian advocates, the
diamond trade as represented by the World Diamond Council,and the United States Government have been working to blockthe trade in conflict diamonds. Their efforts have helped tobuild a consensus that action is urgently needed to end thetrade in conflict diamonds.
(4) The United Nations Security Council has acted at var-
ious times under chapter VII of the Charter of the UnitedNations to address threats to international peace and securityposed by conflicts linked to diamonds. Through these actions,it has prohibited all states from exporting weapons to certaincountries affected by such conflicts. It has further requiredall states to prohibit the direct and indirect import of roughdiamonds from Sierra Leone unless the diamonds are controlledunder specified certificate of origin regimes and to prohibitabsolutely the direct and indirect import of rough diamondsfrom Liberia.
(5) In response, the United States implemented sanctions
restricting the importation of rough diamonds from Sierra19 USC 3901.19 USC 3901
note.Clean Diamond
Trade Act.Apr. 25, 2003
[H.R. 1584]
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Leone to those diamonds accompanied by specified certificates
of origin and fully prohibiting the importation of rough dia-monds from Liberia. The United States is now taking furtheraction against trade in conflict diamonds.
(6) Without effective action to eliminate trade in conflict
diamonds, the trade in legitimate diamonds faces the threatof a consumer backlash that could damage the economies ofcountries not involved in the trade in conflict diamonds andpenalize members of the legitimate trade and the people theyemploy. To prevent that, South Africa and more than 30 othercountries are involved in working, through the ‘‘KimberleyProcess’’, toward devising a solution to this problem. As theconsumer of a majority of the world’s supply of diamonds,the United States has an obligation to help sever the linkbetween diamonds and conflict and press for implementationof an effective solution.
(7) Failure to curtail the trade in conflict diamonds or
to differentiate between the trade in conflict diamonds andthe trade in legitimate diamonds could have a severe negativeimpact on the legitimate diamond trade in countries such asBotswana, Namibia, South Africa, and Tanzania.
(8) Initiatives of the United States seek to resolve the
regional conflicts in sub-Saharan Africa which facilitate thetrade in conflict diamonds.
(9) The Interlaken Declaration on the Kimberley Process
Certification Scheme for Rough Diamonds of November 5, 2002,states that Participants will ensure that measures taken toimplement the Kimberley Process Certification Scheme forRough Diamonds will be consistent with international traderules.
SEC. 3. DEFINITIONS.
In this Act:
(1) A PPROPRIATE CONGRESSIONAL COMMITTEES .—The term
‘‘appropriate congressional committees’’ means the Committeeon Ways and Means and the Committee on International Rela-tions of the House of Representatives, and the Committee onFinance and the Committee on Foreign Relations of the Senate.
(2) C
ONTROLLED THROUGH THE KIMBERLEY PROCESS CERTIFI –
CATION SCHEME .—An importation or exportation of rough dia-
monds is ‘‘controlled through the Kimberley Process Certifi-cation Scheme’’ if it is an importation from the territory ofa Participant or exportation to the territory of a Participantof rough diamonds that is—
(A) carried out in accordance with the Kimberley
Process Certification Scheme, as set forth in regulationspromulgated by the President; or
(B) controlled under a system determined by the Presi-
dent to meet substantially the standards, practices, andprocedures of the Kimberley Process Certification Scheme.(3) E
XPORTING AUTHORITY .—The term ‘‘exporting authority’’
means 1 or more entities designated by a Participant fromwhose territory a shipment of rough diamonds is being exportedas having the authority to validate the Kimberley Process Cer-tificate.
(4) I
MPORTING AUTHORITY .—The term ‘‘importing authority’’
means 1 or more entities designated by a Participant into19 USC 3902.
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whose territory a shipment of rough diamonds is imported
as having the authority to enforce the laws and regulationsof the Participant regulating imports, including the verificationof the Kimberley Process Certificate accompanying the ship-ment.
(5) K
IMBERLEY PROCESS CERTIFICATE .—The term ‘‘Kim-
berley Process Certificate’’ means a forgery resistant documentof a Participant that demonstrates that an importation or expor-tation of rough diamonds has been controlled through the Kim-berley Process Certification Scheme and contains the minimumelements set forth in Annex I to the Kimberley Process Certifi-cation Scheme.
(6) K
IMBERLEY PROCESS CERTIFICATION SCHEME .—The term
‘‘Kimberley Process Certification Scheme’’ means those stand-ards, practices, and procedures of the international certificationscheme for rough diamonds presented in the document entitled‘‘Kimberley Process Certification Scheme’’ referred to in theInterlaken Declaration on the Kimberley Process CertificationScheme for Rough Diamonds of November 5, 2002.
(7) P
ARTICIPANT .—The term ‘‘Participant’’ means a state,
customs territory, or regional economic integration organizationidentified by the Secretary of State.
(8) P
ERSON .—The term ‘‘person’’ means an individual or
entity.
(9) R OUGH DIAMOND .—The term ‘‘rough diamond’’ means
any diamond that is unworked or simply sawn, cleaved, orbruted and classifiable under subheading 7102.10, 7102.21, or7102.31 of the Harmonized Tariff Schedule of the United States.
(10) U
NITED STATES .—The term ‘‘United States’’, when used
in the geographic sense, means the several States, the Districtof Columbia, and any commonwealth, territory, or possessionof the United States.
(11) U
NITED STATES PERSON .—The term ‘‘United States per-
son’’ means—
(A) any United States citizen or any alien admitted
for permanent residence into the United States;
(B) any entity organized under the laws of the United
States or any jurisdiction within the United States(including its foreign branches); and
(C) any person in the United States.
SEC. 4. MEASURES FOR THE IMPORTATION AND EXPORTATION OF
ROUGH DIAMONDS.
(a) P ROHIBITION .—The President shall prohibit the importation
into, or exportation from, the United States of any rough diamond,from whatever source, that has not been controlled through theKimberley Process Certification Scheme.
(b) W
AIVER .—The President may waive the requirements set
forth in subsection (a) with respect to a particular country forperiods of not more than 1 year each, if, with respect to eachsuch waiver—
(1) the President determines and reports to the appropriate
congressional committees that such country is taking effectivesteps to implement the Kimberley Process Certification Scheme;orPresident.19 USC 3903.
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(2) the President determines that the waiver is in the
national interests of the United States, and reports such deter-mination to the appropriate congressional committees, togetherwith the reasons therefor.
SEC. 5. REGULATORY AND OTHER AUTHORITY.
(a) I NGENERAL .—The President is authorized to and shall
as necessary issue such proclamations, regulations, licenses, andorders, and conduct such investigations, as may be necessary tocarry out this Act.
(b) R
ECORDKEEPING .—Any United States person seeking to
export from or import into the United States any rough diamondsshall keep a full record of, in the form of reports or otherwise,complete information relating to any act or transaction to whichany prohibition imposed under section 4(a) applies. The Presidentmay require such person to furnish such information under oath,including the production of books of account, records, contracts,letters, memoranda, or other papers, in the custody or controlof such person.
(c) O
VERSIGHT .—The President shall require the appropriate
Government agency to conduct annual reviews of the standards,practices, and procedures of any entity in the United States thatissues Kimberley Process Certificates for the exportation from theUnited States of rough diamonds to determine whether such stand-ards, practices, and procedures are in accordance with the Kim-berley Process Certification Scheme. The President shall transmitto the appropriate congressional committees a report on each annualreview under this subsection.
SEC. 6. IMPORTING AND EXPORTING AUTHORITIES.
(a) I N THE UNITED STATES .—For purposes of this Act—
(1) the importing authority shall be the United States
Bureau of Customs and Border Protection or, in the case ofa territory or possession of the United States with its owncustoms administration, analogous officials; and
(2) the exporting authority shall be the Bureau of the
Census.(b) O
FOTHER COUNTRIES .—The President shall publish in the
Federal Register a list of all Participants, and all exporting authori-ties and importing authorities of Participants. The President shallupdate the list as necessary.
SEC. 7. STATEMENT OF POLICY.
The Congress supports the policy that the President shall take
appropriate steps to promote and facilitate the adoption by theinternational community of the Kimberley Process CertificationScheme implemented under this Act.
SEC. 8. ENFORCEMENT.
(a) I NGENERAL .—In addition to the enforcement provisions
set forth in subsection (b)—
(1) a civil penalty of not to exceed $10,000 may be imposed
on any person who violates, or attempts to violate, any license,order, or regulation issued under this Act; and
(2) whoever willfully violates, or willfully attempts to vio-
late, any license, order, or regulation issued under this Actshall, upon conviction, be fined not more than $50,000, or,if a natural person, may be imprisoned for not more than19 USC 3907.19 USC 3906.President.
Federal Register,publication.19 USC 3905.President.
19 USC 3904.
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10 years, or both; and any officer, director, or agent of any
corporation who willfully participates in such violation maybe punished by a like fine, imprisonment, or both.(b) I
MPORT VIOLATIONS .—Those customs laws of the United
States, both civil and criminal, including those laws relating toseizure and forfeiture, that apply to articles imported in violationof such laws shall apply with respect to rough diamonds importedin violation of this Act.
(c) A
UTHORITY TO ENFORCE .—The United States Bureau of
Customs and Border Protection and the United States Bureauof Immigration and Customs Enforcement are authorized, as appro-priate, to enforce the provisions of subsection (a) and to enforcethe laws and regulations governing exports of rough diamonds,including with respect to the validation of the Kimberley ProcessCertificate by the exporting authority.
SEC. 9. TECHNICAL ASSISTANCE.
The President may direct the appropriate agencies of the United
States Government to make available technical assistance to coun-
tries seeking to implement the Kimberley Process CertificationScheme.
SEC. 10. SENSE OF CONGRESS.
(a) O NGOING PROCESS .—It is the sense of the Congress that
the Kimberley Process Certification Scheme, officially launched onJanuary 1, 2003, is an ongoing process. The President should workwith Participants to strengthen the Kimberley Process CertificationScheme through the adoption of measures for the sharing of statis-tics on the production of and trade in rough diamonds, and formonitoring the effectiveness of the Kimberley Process CertificationScheme in stemming trade in diamonds the importation or expor-tation of which is not controlled through the Kimberley ProcessCertification Scheme.
(b) S
TATISTICS AND REPORTING .—It is the sense of the Congress
that under Annex III to the Kimberley Process Certification Scheme,Participants recognized that reliable and comparable data on theinternational trade in rough diamonds are an essential tool forthe effective implementation of the Kimberley Process CertificationScheme. Therefore, the executive branch should continue to—
(1) keep and publish statistics on imports and exports
of rough diamonds under subheadings 7102.10.00, 7102.21, and7102.31.00 of the Harmonized Tariff Schedule of the UnitedStates;
(2) make these statistics available for analysis by interested
parties and by Participants; and
(3) take a leadership role in negotiating a standardized
methodology among Participants for reporting statistics onimports and exports of rough diamonds.
SEC. 11. KIMBERLEY PROCESS IMPLEMENTATION COORDINATING
COMMITTEE.
The President shall establish a Kimberley Process Implementa-
tion Coordinating Committee to coordinate the implementation ofthis Act. The Committee shall be composed of the following individ-uals or their designees:
(1) The Secretary of the Treasury and the Secretary of
State, who shall be co-chairpersons.
(2) The Secretary of Commerce.Establishment.President.19 USC 3910.19 USC 3909.19 USC 3908.
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(3) The United States Trade Representative.
(4) The Secretary of Homeland Security.(5) A representative of any other agency the President
deems appropriate.
SEC. 12. REPORTS.
(a) A NNUAL REPORTS .—Not later than 1 year after the date
of the enactment of this Act and every 12 months thereafter forsuch period as this Act is in effect, the President shall transmitto the Congress a report—
(1) describing actions taken by countries that have exported
rough diamonds to the United States during the preceding12-month period to control the exportation of the diamondsthrough the Kimberley Process Certification Scheme;
(2) describing whether there is statistical information or
other evidence that would indicate efforts to circumvent theKimberley Process Certification Scheme, including cuttingrough diamonds for the purpose of circumventing the Kimberley
Process Certification Scheme;
(3) identifying each country that, during the preceding
12-month period, exported rough diamonds to the United Statesand was exporting rough diamonds not controlled through theKimberley Process Certification Scheme, if the failure to doso has significantly increased the likelihood that those dia-monds not so controlled are being imported into the UnitedStates; and
(4) identifying any problems or obstacles encountered in
the implementation of this Act or the Kimberly Process Certifi-cation Scheme.(b) S
EMIANNUAL REPORTS .—For each country identified in sub-
section (a)(3), the President, during such period as this Act isin effect, shall, every 6 months after the initial report in whichthe country was identified, transmit to the Congress a report thatexplains what actions have been taken by the United States orsuch country since the previous report to ensure that diamondsthe exportation of which was not controlled through the KimberleyProcess Certification Scheme are not being imported from thatcountry into the United States. The requirement to issue a semi-annual report with respect to a country under this subsectionshall remain in effect until such time as the country is controllingthe importation and exportation of rough diamonds through theKimberley Process Certification Scheme.
SEC. 13. GAO REPORT.
Not later than 24 months after the effective date of this Act,
the Comptroller General of the United States shall transmit areport to the Congress on the effectiveness of the provisions ofthis Act in preventing the importation or exportation of roughdiamonds that is prohibited under section 4. The Comptroller Gen-eral shall include in the report any recommendations on any modi-fications to this Act that may be necessary.
SEC. 14. DELEGATION OF AUTHORITIES.
The President may delegate the duties and authorities under
this Act to such officers, officials, departments, or agencies of theUnited States Government as the President deems appropriate.19 USC 3913.Deadline.
19 USC 3912.Deadlines.
President.19 USC 3911.
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LEGISLATIVE HISTORY—H.R. 1584:
CONGRESSIONAL RECORD, Vol. 149 (2003):
Apr. 8, considered and passed House.Apr. 10, considered and passed Senate, amended.Apr. 11, House concurred in Senate amendment.
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 39 (2003):
Apr. 25, Presidential statement.SEC. 15. EFFECTIVE DATE.
This Act shall take effect on the date on which the President
certifies to the Congress that—
(1) an applicable waiver that has been granted by the
World Trade Organization is in effect; or
(2) an applicable decision in a resolution adopted by the
United Nations Security Council pursuant to Chapter VII ofthe Charter of the United Nations is in effect.
This Act shall thereafter remain in effect during those periodsin which, as certified by the President to the Congress, an applicablewaiver or decision referred to in paragraph (1) or (2) is in effect.
Approved April 25, 2003.19 USC 3901
note.President.Certification.
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