Bush Signs Clean Diamond Act

April 28, 2003

Bush Signs Clean Diamond Act

As expected, President George W. Bush signed the recently passed Clean Diamond Trade Act in time for the U.S. delegation to take the news to an international meeting this week in Johannesburg, South Africa, convened to fine-tune the Kimberley Process Certification Scheme.

"Enactment of the Clean Diamond Trade Act makes the U.S. a full participant in the Kimberley Process Certification Scheme, and this participation is critical to the systemıs success in excluding conflict diamonds from the legitimate supply chain. The industry is proud to have played an active role in the progress achieved so far," Eli Izhakoff, chairman of the World Diamond Council, and Matthew Runci, executive director of WDC and president/CEO of Jewelers of America, said in a joint statement.

Izhakoff and Runci said the international certification system requires strong enforcement and ongoing review to fulfill its goals. The statement said:

"Now the international community has the task of building on the strong foundation represented by the KPCS. Participating governments will have that opportunity when they meet in Johannesburg starting April 28. This plenary session will consider proposals for standardizing the compilation and analysis of government trade statistics and for monitoring enforcement of the certification scheme going forward. This is essentially the responsibility of governments of all the nations involved in extracting, processing, exporting and importing of rough diamonds.

"Industry supports these deliberations. We will work for the creation of a practical and effective statistics regime and a credible and effective monitoring system. In industryıs view, these tasks are particularly important in the context of producing countries, where in some instances effective control measures and reliable statistics will require technical assistance and support from outside sources.

"As a supplement to the government-enforced certification program, the industry has also established a system of warranties under which dealers purchase stones only from sellers who attest to the merchandiseıs legitimacy. The WDC, JA and other industry trade groups have been informing their constituents worldwide of the importance of their adhering to the warranty program for the purpose of supporting the KPCS. We have also been informing these constituents – in detail – of their responsibilities in complying with the KPCS for cross-border trade in rough diamonds and implementing the warranty program. These efforts will continue.

"To underpin the voluntary system of warranties, individual members of the international diamond industry and trade are to instruct their independent auditors to verify that records of warranties are being created and maintained, in the normal course of business, in full compliance with the KPCS. This certification should be subject to government verification and we urge governments to perform that function."

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