[108th Congress Public Law 19]
[From the U.S. Government Printing Office]
[DOCID: f:publ019.108]
[[Page 117 STAT. 631]]
Public Law 108-19
108th Congress
An Act
To implement effective measures to stop trade in conflict diamonds, and
for other purposes. <<NOTE: Apr. 25, 2003 - [H.R. 1584]>>
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress <<NOTE: Clean Diamond Trade
Act.>> assembled,
SECTION 1. <<NOTE: 19 USC 3901 note.>> SHORT TITLE.
This Act may be cited as the ``Clean Diamond Trade Act''.
SEC. 2. <<NOTE: 19 USC 3901.>> 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
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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 Tanzania.
(8) Initiatives of the United States seek to resolve the
regional conflicts in sub-Saharan Africa which facilitate the
trade 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 to
implement the Kimberley Process Certification Scheme for Rough
Diamonds will be consistent with international trade rules.
SEC. 3. <<NOTE: 19 USC 3902.>> DEFINITIONS.
In this Act:
(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 Senate.
(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; or
(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
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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 shipment.
(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 Certification
Scheme.
(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); and
(C) any person in the United States.
SEC. 4. <<NOTE: 19 USC 3903.>> MEASURES FOR THE IMPORTATION AND
EXPORTATION OF ROUGH DIAMONDS.
(a) <<NOTE: President.>> 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 Certification Scheme.
(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
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(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 therefor.
SEC. 5. <<NOTE: President. 19 USC 3904.>> 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 subsection.
SEC. 6. <<NOTE: 19 USC 3905.>> 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; and
(2) the exporting authority shall be the Bureau of the
Census.
(b) <<NOTE: President. Federal Register, publication.>> 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
necessary.
SEC. 7. <<NOTE: 19 USC 3906.>> 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. <<NOTE: 19 USC 3907.>> ENFORCEMENT.
(a) In General.--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
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
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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. <<NOTE: 19 USC 3908.>> 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. <<NOTE: 19 USC 3909.>> 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 continue to--
(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 diamonds.
SEC. 11. <<NOTE: Establishment. President. 19 USC 3910.>> 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
designees:
(1) The Secretary of the Treasury and the Secretary of
State, who shall be co-chairpersons.
(2) The Secretary of Commerce.
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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. <<NOTE: Deadlines. President. 19 USC 3911.>> 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 Certification Scheme;
(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; and
(4) identifying any problems or obstacles encountered in the
implementation of this Act or the Kimberly Process Certification
Scheme.
(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. <<NOTE: Deadline. 19 USC 3912.>> 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. <<NOTE: 19 USC 3913.>> 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.
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SEC. 15. <<NOTE: 19 USC 3901 note. President. Certification.>> 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.
Approved April 25, 2003.
LEGISLATIVE HISTORY--H.R. 1584:
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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.
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