One Hundred Eighth Congress
United States of America
AT THE FIRST SESSION
Begun and held at the City of Washington on Tuesday,
the seventh day of January, two thousand and three
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 activities, overthrow legitimate
governments, subvert international efforts to promote peace and stability,
and commit horrifying atrocities against unarmed civilians. During the past
decade, more than 6,500,000 people from Sierra Leone, Angola, and the
Democratic Republic of the Congo have been driven from their homes by wars
waged in large part for control of diamond mining areas. A million of these
are refugees eking out a miserable existence in neighboring countries, and
tens of thousands have fled to the United States. Approximately 3,700,000
people 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 not only 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 block the trade in conflict diamonds. Their efforts
have helped to build a consensus that action is urgently needed to end the
trade in conflict diamonds.
(4) The United Nations Security Council has acted at various times under
chapter VII of the Charter of the United Nations to address threats to
international peace and security posed by conflicts linked to diamonds.
Through these actions, it has prohibited all states from exporting weapons
to certain countries affected by such conflicts. It has further required all
states to prohibit the direct and indirect import of rough diamonds from
Sierra Leone unless the diamonds are controlled under specified certificate
of origin regimes and to prohibit absolutely the direct and indirect import
of rough diamonds from Liberia.
(5) In response, the United States implemented sanctions restricting the
importation of rough diamonds from Sierra Leone to those diamonds
accompanied by specified certificates of origin and fully prohibiting the
importation of rough diamonds from Liberia. The United States is now taking
further action against trade in conflict diamonds.
(6) Without effective action to eliminate trade in conflict diamonds,
the trade in legitimate diamonds faces the threat of a consumer backlash
that could damage the economies of countries not involved in the trade in
conflict diamonds and penalize members of the legitimate trade and the
people they employ. To prevent that, South Africa and more than 30 other
countries are involved in working, through the `Kimberley Process', toward
devising a solution to this problem. As the consumer of a majority of the
world's supply of diamonds, the United States has an obligation to help
sever the link between diamonds and conflict and press for implementation of
an effective solution.
(7) Failure to curtail the trade in conflict diamonds or to
differentiate between the trade in conflict diamonds and the trade in
legitimate diamonds could have a severe negative impact on the legitimate
diamond trade in countries such as Botswana, Namibia, South Africa, and
(8) Initiatives of the United States seek to resolve the regional
conflicts in sub-Saharan Africa which facilitate the trade in conflict
(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 to implement the Kimberley Process Certification
Scheme for Rough Diamonds will be consistent with international trade
SEC. 3. DEFINITIONS.
(1) APPROPRIATE CONGRESSIONAL COMMITTEES- The term `appropriate
congressional committees' means the Committee on Ways and Means and the
Committee on International Relations of the House of Representatives, and
the Committee on Finance and the Committee on Foreign Relations of the
(2) CONTROLLED THROUGH THE KIMBERLEY PROCESS CERTIFICATION SCHEME- An
importation or exportation of rough diamonds is `controlled through the
Kimberley Process Certification Scheme' if it is an importation from the
territory of a Participant or exportation to the territory of a Participant
of rough diamonds that is--
(A) carried out in accordance with the Kimberley Process Certification
Scheme, as set forth in regulations promulgated by the President;
(B) controlled under a system determined by the President to meet
substantially the standards, practices, and procedures of the Kimberley
Process Certification Scheme.
(3) EXPORTING AUTHORITY- The term `exporting authority' means 1 or more
entities designated by a Participant from whose territory a shipment of
rough diamonds is being exported as having the authority to validate the
Kimberley Process Certificate.
(4) IMPORTING AUTHORITY- The term `importing authority' means 1 or more
entities designated by a Participant into whose territory a shipment of
rough diamonds is imported as having the authority to enforce the laws and
regulations of the Participant regulating imports, including the
verification of the Kimberley Process Certificate accompanying the
(5) KIMBERLEY PROCESS CERTIFICATE- The term `Kimberley Process
Certificate' means a forgery resistant document of a Participant that
demonstrates that an importation or exportation of rough diamonds has been
controlled through the Kimberley Process Certification Scheme and contains
the minimum elements set forth in Annex I to the Kimberley Process
(6) KIMBERLEY PROCESS CERTIFICATION SCHEME- The term `Kimberley Process
Certification Scheme' means those standards, practices, and procedures of
the international certification scheme for rough diamonds presented in the
document entitled `Kimberley Process Certification Scheme' referred to in
the Interlaken Declaration on the Kimberley Process Certification Scheme for
Rough Diamonds of November 5, 2002.
(7) PARTICIPANT- The term `Participant' means a state, customs
territory, or regional economic integration organization identified by the
Secretary of State.
(8) PERSON- The term `person' means an individual or entity.
(9) ROUGH DIAMOND- The term `rough diamond' means any diamond that is
unworked or simply sawn, cleaved, or bruted and classifiable under
subheading 7102.10, 7102.21, or 7102.31 of the Harmonized Tariff Schedule of
the United States.
(10) UNITED STATES- The term `United States', when used in the
geographic sense, means the several States, the District of Columbia, and
any commonwealth, territory, or possession of the United States.
(11) UNITED STATES PERSON- The term `United States person' 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);
(C) any person in the United States.
SEC. 4. MEASURES FOR THE IMPORTATION AND EXPORTATION OF ROUGH DIAMONDS.
(a) PROHIBITION- 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 the Kimberley Process
(b) WAIVER- The President may waive the requirements set forth in
subsection (a) with respect to a particular country for periods of not more
than 1 year each, if, with respect to each such waiver--
(1) the President determines and reports to the appropriate
congressional committees that such country is taking effective steps to
implement the Kimberley Process Certification Scheme; or
(2) the President determines that the waiver is in the national
interests of the United States, and reports such determination to the
appropriate congressional committees, together with the reasons
SEC. 5. REGULATORY AND OTHER AUTHORITY.
(a) IN GENERAL- The President is authorized to and shall as necessary
issue such proclamations, regulations, licenses, and orders, and conduct such
investigations, as may be necessary to carry out this Act.
(b) RECORDKEEPING- Any United States person seeking to export from or
import into the United States any rough diamonds shall keep a full record of,
in the form of reports or otherwise, complete information relating to any act
or transaction to which any prohibition imposed under section 4(a) applies.
The President may 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 control of such person.
(c) OVERSIGHT- 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 that issues Kimberley Process Certificates
for the exportation from the United States of rough diamonds to determine
whether such standards, practices, and procedures are in accordance with the
Kimberley Process Certification Scheme. The President shall transmit to the
appropriate congressional committees a report on each annual review under this
SEC. 6. IMPORTING AND EXPORTING AUTHORITIES.
(a) IN 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 of a territory or possession of the
United States with its own customs administration, analogous officials;
(2) the exporting authority shall be the Bureau of the Census.
(b) OF OTHER COUNTRIES- The President shall publish in the Federal
Register a list of all Participants, and all exporting authorities and
importing authorities of Participants. The President shall update the list as
SEC. 7. STATEMENT OF POLICY.
The Congress supports the policy that the President shall take appropriate
steps to promote and facilitate the adoption by the international community of
the Kimberley Process Certification Scheme implemented under this Act.
SEC. 8. ENFORCEMENT.
(a) IN GENERAL- In addition to the enforcement provisions set forth in
(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 violate, any
license, order, or regulation issued under this Act shall, upon conviction,
be fined not more than $50,000, or, if a natural person, may be imprisoned
for not more than 10 years, or both; and any officer, director, or agent of
any corporation who willfully participates in such violation may be punished
by a like fine, imprisonment, or both.
(b) IMPORT VIOLATIONS- Those customs laws of the United States, both civil
and criminal, including those laws relating to seizure and forfeiture, that
apply to articles imported in violation of such laws shall apply with respect
to rough diamonds imported in violation of this Act.
(c) AUTHORITY TO ENFORCE- The United States Bureau of Customs and Border
Protection and the United States Bureau of Immigration and Customs Enforcement
are authorized, as appropriate, to enforce the provisions of subsection (a)
and to enforce the laws and regulations governing exports of rough diamonds,
including with respect to the validation of the Kimberley Process Certificate
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 countries seeking to
implement the Kimberley Process Certification Scheme.
SEC. 10. SENSE OF CONGRESS.
(a) ONGOING PROCESS- It is the sense of the Congress that the Kimberley
Process Certification Scheme, officially launched on January 1, 2003, is an
ongoing process. The President should work with Participants to strengthen the
Kimberley Process Certification Scheme through the adoption of measures for
the sharing of statistics on the production of and trade in rough diamonds,
and for monitoring the effectiveness of the Kimberley Process Certification
Scheme in stemming trade in diamonds the importation or exportation of which
is not controlled through the Kimberley Process Certification Scheme.
(b) STATISTICS 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 the international trade in
rough diamonds are an essential tool for the effective implementation of the
Kimberley Process Certification Scheme. Therefore, the executive branch should
(1) keep and publish statistics on imports and exports of rough diamonds
under subheadings 7102.10.00, 7102.21, and 7102.31.00 of the Harmonized
Tariff Schedule of the United States;
(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 on imports and exports of rough
SEC. 11. KIMBERLEY PROCESS IMPLEMENTATION COORDINATING COMMITTEE.
The President shall establish a Kimberley Process Implementation
Coordinating Committee to coordinate the implementation of this Act. The
Committee shall be composed of the following individuals or their
(1) The Secretary of the Treasury and the Secretary of State, who shall
(2) The Secretary of Commerce.
(3) The United States Trade Representative.
(4) The Secretary of Homeland Security.
(5) A representative of any other agency the President deems
SEC. 12. REPORTS.
(a) ANNUAL REPORTS- Not later than 1 year after the date of the enactment
of this Act and every 12 months thereafter for such period as this Act is in
effect, the President shall transmit to the Congress a report--
(1) describing actions taken by countries that have exported rough
diamonds to the United States during the preceding 12-month period to
control the exportation of the diamonds through the Kimberley Process
(2) describing whether there is statistical information or other
evidence that would indicate efforts to circumvent the Kimberley Process
Certification Scheme, including cutting rough 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 States and was exporting rough
diamonds not controlled through the Kimberley Process Certification Scheme,
if the failure to do so has significantly increased the likelihood that
those diamonds not so controlled are being imported into the United States;
(4) identifying any problems or obstacles encountered in the
implementation of this Act or the Kimberly Process Certification
(b) SEMIANNUAL REPORTS- For each country identified in subsection (a)(3),
the President, during such period as this Act is in effect, shall, every 6
months after the initial report in which the country was identified, transmit
to the Congress a report that explains what actions have been taken by the
United States or such country since the previous report to ensure that
diamonds the exportation of which was not controlled through the Kimberley
Process Certification Scheme are not being imported from that country into the
United States. The requirement to issue a semiannual report with respect to a
country under this subsection shall remain in effect until such time as the
country is controlling the importation and exportation of rough diamonds
through the Kimberley 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 a report to the
Congress on the effectiveness of the provisions of this Act in preventing the
importation or exportation of rough diamonds that is prohibited under section
4. The Comptroller General shall include in the report any recommendations on
any modifications 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 the United States
Government as the President deems appropriate.
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 of the Charter of the United
Nations is in effect.
This Act shall thereafter remain in effect during those periods in which,
as certified by the President to the Congress, an applicable waiver or
decision referred to in paragraph (1) or (2) is in effect.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.