Explanatory Memorandum to COM(2002)455 - Implementation of the Kimberley Process certification scheme for the international trade in rough diamonds - Main contents
Please note
This page contains a limited version of this dossier in the EU Monitor.
| dossier | COM(2002)455 - Implementation of the Kimberley Process certification scheme for the international trade in rough diamonds. |
|---|---|
| source | COM(2002)455  |
| date | 08-08-2002 |
The sanctions have failed to stop the flow of conflict diamonds into the legitimate trade or to bring the conflicts to a halt. Conflict diamonds are continuing to find a market and enter the legitimate diamond trade. There is therefore a need to complement the sanctions to reduce the role of such diamonds in fuelling conflicts.
At the initiative of African diamond producing countries in particular, producer and trading countries, industry and civil society have met in the 'Kimberley Process' to design a certification scheme for the international trade in rough diamonds.
The purpose of the scheme is to prevent 'conflict' diamonds from fuelling armed conflicts and discrediting the legitimate market for rough diamonds, which makes an important economic contribution, not least to certain developing countries in Africa.
Such a certification scheme will make a major contribution to bringing an end to these conflicts and serve the implementation of the EU programme on conflict prevention.
On 29 October 2001 the Council authorised the Commission to negotiate an agreement establishing an international certification scheme for rough diamonds and to conduct these negotiations on behalf of the European Community.
A ministerial meeting of the Kimberley Process in Gaborone on 29 November 2001 produced detailed proposals for the scheme. The ministers agreed to submit the proposals to their competent authorities with a view to implementing the scheme at the earliest possible date in the course of 2002. Participants are encouraged to start using the certificate as soon as possible, but trade restrictions will not be applied until the scheme is put into force by all participants. Provided all participants have managed to put in place the necessary internal legislation, they are expected to launch the scheme simultaneously at a Kimberley Process ministerial meeting in November 2002.
Though the Commission has largely met the major objectives of the Council's authorisation to conduct negotiations, the negotiations will not lead to the formal agreement initially envisaged.
There remain two not fully resolved issues, namely the definitions of 'participant' and 'conflict diamonds'. These issues affect neither the framework nor the individual components of the certification scheme, and broad agreement has been reached on the rest of the document. The two outstanding issues are expected to be resolved at the meeting in Geneva.
In spite of the two outstanding issues the Commission therefore considers the design of the certification scheme to be definitive. The Community can therefore proceed with the preparations for the scheme's implementation. This is necessary to enable the Community to be a founder participant, which is desirable, and will allow the Community to be a leading partner in combating conflict diamonds.
The Commission therefore invites the Council to adopt the attached proposal for a Council Regulation implementing the Kimberley Process certification scheme in the Community. The document containing the Kimberley certification scheme for rough diamonds is attached to the proposed Council Regulation as Annex I.
The proposed Regulation would enable the Community to take all the necessary preparatory steps for the implementation of the scheme by the Community. The entry into force of the proposed import and export prohibition must, however, be suspended until the participants have set the date on which they will all simultaneously apply the scheme.
The certification scheme is basically an export and import control regime.
Producer countries will control the production and transport of rough diamonds from mine to point of export. Shipments of rough diamonds will be sealed in tamper-resistant containers and a Kimberley Process certificate issued for each shipment.
Re-exporting countries will ensure that only rough diamonds exported/imported under a Kimberly Process certificate enter the chain of transactions from import to export. The diamond industry will introduce a system of self regulation to support government efforts.
Importing countries will inspect the seal and the certificate at the time of import. Imports of rough diamonds not accompanied by a certificate issued by a Kimberly Process participant will be prohibited, as will exports to non-participants.
It is expected that all countries producing and trading rough diamonds will participate.
Participants will set up a mutual system to monitor the internal controls underpinning the issue of certificates.
The United Nations General Assembly welcomed the certification scheme developed by the Kimberley Process in Resolution 56/263 of 13 March 2002.
Subjecting international trade in rough diamonds to a certification scheme of the kind described above concerns both the free movement of goods and the common commercial policy. For the purposes of such a scheme the Community is to be considered a single entity without internal borders. The Community's participation in the Kimberley Certification Scheme is based on the Community's exclusive competence in these matters.
The Community's participation in the Kimberley Process certification scheme for rough diamonds is necessary and desirable for foreign and security policy reasons and economic considerations. In Antwerp and London the Community has two of the world largest rough diamond trading centres, and these centres are vulnerable to the effects of conflict diamonds on the legitimate trade. Participation in the certification scheme will protect the economic and financial interests of those centres and the Community as a whole. Furthermore, such participation is in line with the objectives of conflict management and conflict prevention defined by the European Council i.