Explanatory Memorandum to COM(2013)427 - Amendment of Council Regulation (EC) No 2368/2002 as regards the inclusion of Greenland in implementing the Kimberley Process certification scheme

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This page contains a limited version of this dossier in the EU Monitor.

1. CONTEXT OF THE PROPOSAL

This proposal aims at enabling Greenland to participate in the Kimberley Process certification scheme on rough diamonds through its cooperation with the European Union. The scheme set out in the proposal would allow for the import and export of rough diamonds from Greenland to the Union as well as to other participants of the certification scheme, provided that all imports and exports of rough diamonds are verified and, for exports, certified by Union authorities pursuant to the rules set out in Regulation (EC) No 2368/2002 implementing the Kimberley Process certification scheme for the international trade in rough diamonds.

This association would strengthen economic relations between the European Union and Greenland in the diamond industry, and in particular it would enable Greenland to export rough diamonds accompanied by the European Union Certificate issued for the purposes of the certification scheme, with a view of promoting the economic development of Greenland.

1.

RESULTS OF CONSULTATIONS WITH THE INTERESTED PARTIES AND IMPACT ASSESSMENTS



Greenland and Denmark has agreed to the approach taken by the proposal and will undertake to transpose and implement in the legislation applicable to Greenland the relevant provisions of Regulation (EC) No 2368/2002 as regards the conditions and formalities for importing and exporting rough diamonds, their transit to a participant other than the Union, the participation of the Union, including Greenland, in the Kimberley Process certification scheme, obligations relating to due diligence, anti-circumvention, exchange of information, and ensuring compliance with such provisions.

2.

LEGAL ELEMENTS OF THE PROPOSAL



The legal basis of the proposal is Article 207. The proposal extends the territory of the Union to also cover the territory of Greenland for the purposes of the Kimberley Process certification scheme. Accordingly, Greenland will be prohibited to accept imports or exports of rough diamonds to or from outside of the territory of the Union without a valid Kimberley Process (KP) certificate. The amendments will allow for the export of rough diamonds from Greenland to third countries as long as they are accompanied by an EU KP certificate. The conditions for certification previously required evidence that the rough diamonds were lawfully imported into the Union. For diamonds mined and extracted in Greenland that have never been exported before, an alternative condition is introduced by this proposal, notably to demonstrate proof in this regard.

In addition, the proposal sets out the modalities of submitting rough diamonds to Union authorities for verification, extends the special rules for transit to Greenland, enables Greenland's participation in the Committee for the implementation of the Regulation and enables Greenland's representation in the Kimberley Process and cooperation with other Member States through the Commission.

The proposal is closely connected to a proposal for a Council Decision setting out specific rules for the circulation of rough diamonds between the Union and Greenland. As proposed in this Decision, the main requirements for rough diamonds to enter or leave the territory of Greenland or the Union would be to (i) be accompanied by some form of an official document, either a document attesting that they were mined in Greenland, or a copy of a Kimberley Process certificate as validated by a Union authority, and (ii) be in sealed tamper-resistant containers.

As proposed in this Decision, rough diamonds mined or extracted in Greenland, provided that they have not been exported previously to a third country, may enter the Union’s customs territory by the use of an attesting document issued by authorities in Greenland. Once rough diamonds mined or extracted in Greenland had been exported to a third country, upon their return they may circulate between the Union and Greenland according to the same rules that apply to all other rough diamonds imported into the Union.

The application of the Decision is proposed to align with the entry into force of this amendment.