[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1584 Enrolled Bill (ENR)]
H.R.1584
One Hundred Eighth Congress
of the
United States of America
AT THE FIRST SESSION
Begun and held at the City of Washington on Tuesday,
the seventh day of January, two thousand and three
An Act
To implement effective measures to stop trade in conflict diamonds, and
for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Clean Diamond Trade Act''.
SEC. 2. 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 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. 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 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. MEASURES FOR THE IMPORTATION AND EXPORTATION OF ROUGH DIAMONDS.
(a) 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
(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. 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. 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) 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. 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. 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 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. 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. 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. 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.
(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. 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. 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. 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.
SEC. 15. 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.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.