[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.