Kimberley Process Scheme List of Participants

Kimberley Process Scheme List of Participants and Offices Responsible to Issue the KPC’s in Each Countries.

This list revises the previously published list of October 31, 2011, to add Cambodia, Cameroon, Kazakhstan, and Panama to the list of Participants in the Kimberley Process Certification Scheme.

Angola—Ministry of Geology and Mines.

Armenia—Ministry of Trade and Economic Development.

Australia—Exporting Authority—Department of Industry, Tourism and Resources;

Importing Authority—Australian Customs Service.

Bangladesh—Ministry of Commerce.

Belarus—Department of Finance.

Botswana—Ministry of Minerals, Energy and Water Resources.

Brazil—Ministry of Mines and Energy.

Canada—Natural Resources Canada.

Cambodia—Ministry of Commerce.

Cameroon—National Permanent Secretariat for the Kimberley Process in Cameroon

Central African Republic—Ministry of Energy and Mining.

China—General Administration of Quality Supervision, Inspection and Quarantine.

Democratic Republic of the Congo—Ministry of Mines.

Republic of Congo—Ministry of Mines.

Croatia—Ministry of Economy.

European Union—DG/External Relations

Ghana—Precious Minerals and Marketing Company Ltd.

Guinea—Ministry of Mines and Geology.

Guyana—Geology and Mines Commission.

India—The Gem and Jewelry Export Promotion Council.

Indonesia—Directorate General of Foreign Trade of the Ministry of Trade.

Israel—The Diamond Controller.

Japan—Ministry of Economy, Trade and Industry.

Kazakhstan—Ministry of Finance.

Republic of Korea—Ministry of Commerce, Industry and Energy.

Laos—Ministry of Finance.

Lebanon—Ministry of Economy and Trade.

Lesotho—Commissioner of Mines and Geology.

Liberia—Ministry of Lands, Mines and Energy.

Malaysia—Ministry of International Trade and Industry.

Mauritius—Ministry of Commerce.

Namibia—Ministry of Mines and Energy.

Mexico—Economic Secretariat.

New Zealand—Ministry of Foreign Affairs and Trade.

Norway—The Norwegian Goldsmiths’ Association.

Panama—National Customs Authority.

Russia—Gokhran, Ministry of Finance.

Sierra Leone—Government Gold and Diamond Office.

Singapore—Singapore Customs

South Africa—South African Diamond Board.

Sri Lanka—National Gem and Jewelry Authority.

Swaziland—Office of the Commissioner of Mines.

Switzerland—State Secretariat for Economic Affairs.

Chinese Taipei—Bureau of Foreign Trade.

Tanzania—Commissioner for Minerals.

Thailand—Ministry of Commerce.

Togo—Ministry of Mines and Geology.

Turkey—Istanbul Gold Exchange.

Ukraine—State Gemological Centre of Ukraine

United Arab Emirates—Dubai Metals and Commodities Center.

United States of America—Importing Authority—United States Bureau of Customs and Border Protection;

Exporting Authority—Bureau of the Census.

Vietnam—Ministry of Trade.

Zimbabwe—Ministry of Mines and Mining Development.

Rough Diamonds Import Requirements Into The USA

The requirements for importing in compliance with the KP are as follows:

  • All imports and exports of rough diamonds must be accompanied by a Kimberley Process Certificate (KPC).  The original KPC must be with the actual merchandise; copies will not suffice.
  • Imports of rough diamonds must be in a sealed tamper-resistant container.  A tamper-resistant container is defined as “packaging having an indicator or barrier to entry that could reasonably be expected to provide visible evidence that tampering had occurred.  For example, packaging such as a re-sealable sandwich bag is not deemed tamper-resistant.  Further, standard mailing and express consignment packaging alone is not considered as tamper-resistant.”

Rough diamonds may only be imported from, or exported to, countries that are participants in the KimberleyProcess and are not subject to further US restrictions.  The recent FR notice can be found here that lists all Kimberley participants and those countries subject to US restrictions.

  • All shipments of rough diamonds shall not be released from the custody of Customs and Border Protection (CBP) except by a formal entry for consumption (this is the step that involves a customs broker).
  • Importers must fax a copy of all Kimberley Process certificates ( U.S. KPs and those received from other countries) to the U.S. Census Bureau at: 1-800-457-7328.

o       This must be faxed after the arrival or export without delay.

  • Rough Diamond importers and exporters must retain records of all Kimberley Process ( U.S. and foreign certificates for five years).
  • An annual report must be filed with the Department of State by April 1, that report summarizes the previous year’s activity.  The attached brochure contains the message that I read to you about this requirement.

Rough diamonds are unconditionally duty free, but a merchandise processing fee will apply.  That fee currently does not exceed $485, and is calculated by multiplying the value of the merchandise by .3464%.  There will be fees from the customs broker associated with filing a formal entry.

Several African Countries Enforcing FOB Transactions To Protect from Money Laundering

There is a clear trend in African Counties such as Sierra Leone, DRC, Zimbabwe and others to attempt to control diamonds transaction on an FOB basis for various reasons.

Countries like Zimbabwe are more interested in job creation and the additional employment created as a result of closing diamond transactions in Harare, thus circulating more money into the local economy.

Countries like Sierra Leone on the other hand are trying to curve the money laundering, as banks and or KPC issuing institutions in these Countries such as the GGDO, now want to know who the buyers are, and the anti money laundering departments want to make sure they receive a copy of the person’s passport.

They will usually authorize a CIF transaction AFTER the Buyer is in the system (usually 1 to 3 transactions done on an FOB basis first). At that time a CIF transaction will be permitted for exports.

In the DRC, the banks will usually authorize a CIF transaction after 3 transactions have been done on an FOB basis, unless the Buyer is willing to issue a bank to bank swift.

Rough Diamond Prices on a Downwards Trend For the Last Few Weeks

With some of the largest mining companies slashing their prices by 10% and more, and the pressure on these companies from the Indian market to keep prices low, prices are going down.

This softer market is unlikely to remain for the long term as demand in Asia is expected to pick up within the next 6 months. Despite the lower global production in 2014, most of the major producers like Russia and Botswana’s productions have increased.

Rough Diamonds will always remain a strong commodity on the global market and despite fluctuations in value like all other commodities,  the core value of the asset will always be strong.

Global Rough Diamond Production Down 3.8% in 2014

The KPC’s Annual Global Summary reveals that the Russian Federation is still strong #1 in CTS volume, with 38,303,500 CTS produced in 2014. Distant second in volume only is Botswana with 24,668,090 CTS, however, Botswana almost catches up to the Russian Federation in value, with a production of $3,646,952,179 against $3,733,262,920.

With a global production of 124,778,468 CTS in 2014, we can clearly see a global decrease in production from 2013 of 4,983,573 CTS. This trend downwards equates to a 3.8 % reduction in production.

Now keep in mind that these numbers are for stones with KPC’s only, this does not include diamonds mined and circulated on the black market.

“Fantomas” Makes Diamonds “Magically Disappear”

News of Alrosa & related companies being victim of a theft is going around the diamond community. Alrosa is the largest diamond producing company worldwide, by far. It is owned by the Russian Government and Private Companies.

The Gokhran Depository is holding precious metals, jewels and stones, and has fallen victim of theft before. It is reported that several large stones were stolen from a large parcel on deposit and replaced by smaller ones.

The depository holds Russia’s supplies of gold, silver, platinum, diamonds, emeralds, sapphires, pearls and other stones and precious metals, and has been robbed several times over the years.

India’s Volume of Rough Diamonds Export Down 14.4%

Exports of diamonds last month were just north of $1.5 billion, down by over 18 per cent from to $1.85 billion at the same time last year.

Volume wise, this decline was over 14 per cent, Indian trade exporting over 2.80 million carats in July this year,  against 3.26 million carats last year.

Similarly, imports of rough diamonds in July fell 42.9 per cent to $1 billion against $2 billion last year. In volume terms, 9.36 million carats of rough were imported in July, a decline of 40 per cent compared with imports of 15.6 million carats in July 2014.

However the main markets both for rough and polished diamonds remained strong in places like Holland. Sourcing from Alrosa, the largest producer of rough diamonds. Another would be to make Mumbai a more attractive market in the global diamond trade, as India already cuts over 80% of the world’s diamonds.

Sierra Leone’s Ebola Crisis Dissipating

Since early July, Sierra Leone miners have restarted their mine exploitations, and mines are now operating in full swing. Most operations were suspended for about 7 months from late last year to this summer.

These are great news for all Sierra Leonians and for their economy. The Ebola still remains a threat in Sierra Leone, but there has been no new cases this month on record, which is very positive news.