[Congressional Record Volume 147, Number 54 (Thursday, April 26, 2001)]
[Senate]
[Pages S4004-S4006]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. GREGG:
  S. 787. A bill to prohibit the importation of diamonds from countries 
that have not become signatories to an international agreement 
establishing a certification system for exports and imports of rough 
diamonds or that have not unilaterally implemented a certification 
system meeting the standards set forth herein; to the Committee on 
Finance
  Mr. GREGG. Mr. President, the purpose of the Conflict Diamonds Act of 
2001 is to eliminate the illegal diamond trade that has fueled violent 
conflicts in the African nations of Sierra Leone, Liberia, Congo, 
Angola, Ivory Coast, and Burkina Faso. The sale of illicit diamonds has 
allowed criminal gangs like the Revolutionary United Front in Sierra 
Leone to buy arms and supplies in an effort to expand their influence. 
In the process, they have inflicted unspeakable pain, including torture 
and amputation, on the innocent people they encounter.
  The Conflict Diamonds Act of 2001 bans the importation into the 
United States of diamonds from countries that fail to observe an 
effective diamond control system. Under this legislation, no diamond 
that has ever been in the possession of the RUF or any other rebel 
group will be allowed to enter the United States. This includes 
diamonds that pass through another country for cutting or setting. The 
Conflict Diamonds Act of 2001 authorizes the President of the United 
States to ban the importation of diamonds and diamond jewelry from 
countries if he believes that shipments from those countries violate 
the legislation's intent. Those who knowingly violate the import ban 
would be subject to criminal and civil penalties under existing U.S. 
Customs law. The Customs Service would be authorized to seize illicit 
shipments. The import ban would take effect six months after enactment, 
regardless of the status of negotiations for an international 
agreement.
  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                 S. 787

       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 ``Conflict Diamonds Act of 
     2001.

        TITLE I--PROHIBITION ON IMPORTATION OF CONFLICT DIAMONDS

     SEC. 101. FINDINGS.

       The Congress finds that--
       (1) The use of funds from illegitimate diamond trade to 
     support conflicts in Africa has had devastating effects on 
     the peoples of the regions involved in those conflicts;
       (2) U.N. Security Council Resolution 1173 of June 12, 1998 
     requires the United States and all other U.N. members to take 
     the necessary measures to prohibit the direct or indirect 
     importation from Angola to their territory of all diamonds 
     that are not controlled through the Certificate of Origin 
     regime of the Government of Unity and National Reconciliation 
     (GURN);

[[Page S4005]]

       (3) U.N. Security Council Resolution 1306 of July 5, 2000 
     requires the United States and all other U.N. members to take 
     the necessary measures to prohibit the direct or indirect 
     importation of all rough diamonds from Sierra Leone into 
     their territory that are not controlled by the Government of 
     Sierra Leone through its Certificate of Origin regime;
       (4) U.N. Security Council Resolution 1344 of March 8, 2001 
     requires the United States and all other U.N. members to take 
     the necessary measures to prevent the direct or indirect 
     import of all rough diamonds from Liberia, whether or not 
     such diamonds originated in Liberia;
       (5) Effective compliance with U.N. Security Council 
     Resolutions 1173, 1306, and 1344 is necessary to eliminate 
     trade in conflict diamonds;
       (6) Although the President of the United States has issued 
     Executive Orders to implement Resolution 1173 and Resolution 
     1306, additional measures are needed to ensure compliance 
     with, and prevent circumvention of, those resolutions;
       (7) Further measures are needed to prevent rough diamonds 
     originating in other rebel-controlled conflict areas from 
     entering the global stream of commerce in which legitimate 
     diamonds are sold;
       (8) The resolution of the United Nations General Assembly 
     approved on December 1, 2000 provides important guidance on 
     devising effective and pragmatic measures to address the 
     problem of conflict diamonds; and,
       (9) Since legitimate diamond trade is of great economic 
     importance to developing countries in Africa, no law should 
     be enacted, nor regulation or other measure implemented, that 
     would impede legitimate diamond trade or diminish confidence 
     in the integrity of the legitimate diamond industry.

     SEC. 102. DEFINITIONS.

       (a) The term ``diamond'' means a natural mineral consisting 
     of essentially pure carbon crystallized in the isometric 
     system with a hardness of 10 on the Mohs scale, a specific 
     gravity of approximately 3.52, and a refractive index of 
     2.42.
       (b) The term ``rough diamond'' means a diamond that is 
     unworked or simply sawn, cleaved or bruted, as described in 
     Harmonized Tariff Schedule of the United States subheading 
     7102.31.0000.
       (c) The term ``conflict diamond'' means a diamond that has 
     at any time been in the possession of any person belonging to 
     or associated with armed insurgents, rebel forces, or any 
     other movement using violence against civilians or 
     internationally recognized governments.

     SEC. 103. RESTRICTIONS ON THE IMPORTATION OF DIAMONDS.

       (a) No person may enter into the customs territory of the 
     United States or aid or abet an attempt to enter any diamond, 
     including any diamond set in jewelry, that has been mined in, 
     or mined and set in, and exported directly from, the Republic 
     of Sierra Leone, the Republic of Angola, or the Republic of 
     Liberia except for a diamond or a diamond set in jewelry:
       (1) the country of origin of which has been certified as 
     the Republic of Sierra Leone by the internationally 
     recognized government of that country, in accordance with 
     United Nations Security Council Resolution 1306 of July 5, 
     2000; or
       (2) the country of origin of which has been certified as 
     the Republic of Angola by the internationally recognized 
     government of that country, in accordance with United Nations 
     Security Council Resolution 1173 of June 12, 1998.
       (b) No person may enter into the customs territory of the 
     United States or aid or abet an attempt to enter any diamond 
     directly from a country that: is subject to a United Nations 
     Security Council resolution similar to those identified in 
     subsection (a) or that is not a signatory to an international 
     agreement that establishes a certification system for exports 
     and imports of rough diamonds, that has not unilaterally 
     implemented such a system, or that is not a ``cooperating 
     country'' as defined in subsection (c) of section 105 of this 
     Act.

     SEC. 104. PROHIBITION OF OTHER IMPORTS TO PREVENT 
                   CIRCUMVENTION OF U.N. RESOLUTIONS.

       The President of the United States is authorized to 
     prohibit the importation of diamonds or diamond jewelry 
     exported from any country except for rough diamonds 
     whose country of origin has been certified as either the 
     Republic of Angola or the Republic of Sierra Leone under 
     the Certificate of Origin regimes described in section 103 
     (a) (1) or (2), if there are reasonable grounds to believe 
     that such prohibition is necessary to carry out U.N. 
     Security Council Resolution 1173, 1306, or 1344, or any 
     other Resolution banning the exportation or importation of 
     conflict diamonds.

     SEC. 105. IMPLEMENTING MEASURES.

       (a) The Secretary of the Treasury of the United States is 
     authorized to make such rules and regulations as may be 
     necessary to carry out the provisions of this Act. The public 
     will be notified and given an opportunity of at least 30 days 
     to comment on all proposed rules and regulations before they 
     take effect.
       (b) These regulations will provide that an importer is 
     entitled to rely on the country of origin marking that is 
     required under 19 U.S.C. Sec. 1304. However, nothing in this 
     Act shall be construed to override an importer's duty to 
     exercise reasonable care.
       (c) No later than six months after the date of enactment of 
     this Act, the Secretary of the Treasury will issue a list of 
     countries that are signatories to the international agreement 
     described in Title II, have unilaterally implemented a 
     certification system containing the elements described in 
     subsection (b) of section 203, or are found to be 
     ``cooperating'' countries as defined in this subsection. The 
     Secretary of the Treasury will revise and update this list as 
     necessary. For purposes of this subsection, the Secretary of 
     the Treasury will find that a country is ``cooperating'' if 
     it is acting in good faith to establish and enforce a 
     unilateral certification system meeting the standards 
     described in subsection (b) of section 203 or taking action 
     to ensure that it is not facilitating trade in conflict 
     diamonds. The Secretary of the Treasury, in consultation with 
     appropriate agencies, shall develop and publish criteria that 
     will be used to evaluate whether a country will be deemed a 
     cooperating country. These criteria will be subject to public 
     notice and comment before adoption in final form.
       (d) The Secretary of the Treasury may extend cooperating 
     country status for more than six months after the initial 
     designation, but shall provide to Congress an explanation of 
     the reasons for why such an extension is necessary.
       (e) The President of the United States shall ensure that 
     implementation of and compliance with Title I of this Act is 
     monitored by appropriate agencies or by an independent body.

     SEC. 106. PENALTIES FOR NON-COMPLIANCE.

       (a) Civil and criminal penalties.--Any person who enters or 
     introduces into the commerce of the United States, attempts 
     to enter or introduce, or aids or abets an attempt to enter 
     or introduce, merchandise in violation of Title I of this Act 
     or the implementing regulations for Title I will be subject 
     to civil and criminal penalties in effect under the customs 
     laws of the United States, as set forth in Title 19 of the 
     United States Code. The same administrative procedures and 
     defenses that apply under Title 19 of the United States Code 
     will apply to penalties that are sought to be assessed under 
     this subsection.
       (b) Seizure.--If the Customs Service has reasonable cause 
     to believe that a person has violated the provisions of 
     subsection (a) of this section and that seizure is essential 
     to prevent the introduction of merchandise into the customs 
     territory of the United States whose importation is 
     prohibited by Title I of this Act, then such merchandise may 
     be seized. Within a reasonable time after any such seizure is 
     made, the Customs Service will issue to the person concerned 
     a written statement containing the reasons for the seizure. A 
     person may seek relief from seizure under the procedures and 
     standards prescribed in 19 U.S.C. Sec. 1618 and the Customs 
     Service regulations that implement that provision.
       (c) Court of International Trade Proceedings.--
       (1) Jurisdiction.--Section 1582 of Title 28, United States 
     Code, is amended by amending paragraph (1) to read as 
     follows:
       ``(1) to recover a civil penalty under section 592, 593A, 
     641(b)(6), 641(d)(2)(A), 704(i)(2), or 734(i)(2) of the 
     Tariff Act of 1930.
       (2) Standard of Review.--Notwithstanding any other 
     provision of law, in any proceeding commenced by the United 
     States in the Court of International Trade for the recovery 
     of any monetary penalty under this section, all issues, 
     including the amount of any penalty, shall be tried de novo.
       (d) Proceeds from Fines and Seized Goods.--The proceeds 
     derived from penalties and seizures under Title I of this Act 
     will, in addition to amounts otherwise available for such 
     purposes, be available only for programs to assist the 
     victims of conflicts involving illicitly traded diamonds.

     SEC. 107. REPORT TO CONGRESS.

       The President of the United States will report to Congress 
     no later than 180 days after enactment of this Act and 
     annually thereafter on the implementing measures taken to 
     carry out the provisions of this Title and their 
     effectiveness in stopping imports of conflict diamonds into 
     the United States.

TITLE II--NEGOTIATION OF AN INTERNATIONAL AGREEMENT TO ELIMINATE TRADE 
                          IN CONFLICT DIAMONDS

     SEC. 201. FINDINGS.

       The Congress finds that--
       (1) The most effective and desirable means of eliminating 
     international trade in conflict diamonds is through 
     international cooperative efforts involving governments, the 
     private sector, civil society, and appropriate international 
     organizations;
       (2) The initiatives of the world diamond industry, as 
     reflected in the Resolution of the World Federation of 
     Diamond Bourses and the International Diamond Manufacturers 
     Association in Antwerp on July 19, 2000, as well as the 
     efforts of the South African-led Working Group on African 
     Diamonds and the World Diamond Council in developing 
     proposals for a global certification system for rough 
     diamonds, are important efforts at international cooperation 
     and may provide effective mechanisms that could be 
     incorporated in an international agreement to eliminate trade 
     in conflict diamonds;
       (3) Eliminating imports of rough diamonds from countries 
     where conflict diamonds are mined, transshipped, or 
     subsequently shipped into countries where cutting and 
     polishing occur is the most effective way to eliminate trade 
     in conflict diamonds;

[[Page S4006]]

     SEC. 202. SENSE OF CONGRESS--NEGOTIATION OF INTERNATIONAL 
                   AGREEMENT.

       It is the sense of the Congress that the President should 
     engage in negotiations on and seek to conclude an 
     international agreement to eliminate trade in conflict 
     diamonds as soon as possible. The system implementing this 
     agreement shall be transparent and subject to independent 
     verification and monitoring. Participants in such an 
     agreement should include all countries that either export or 
     import diamonds or diamond jewelry.

     SEC. 203. OVERALL NEGOTIATING OBJECTIVE OF THE UNITED STATES 
                   AND ESSENTIAL ELEMENTS OF AN INTERNATIONAL 
                   AGREEMENT.

       (a) The overall negotiating objective of the United States 
     is to establish an effective global certification system 
     covering the major exporting and importing countries of rough 
     diamonds that will eliminate trade in conflict diamonds.
       (b) The elements of an effective global certification 
     system for rough diamonds that the United States should seek 
     in its negotiations are as follows:
       (1) Rough diamonds, when exported from the country in which 
     they were extracted, must be sealed in a secure, transparent 
     container or bag by appropriate government officials of that 
     country;
       (2) The sealed container described in paragraph (1) must 
     include a fully visible government document certifying the 
     country of extraction and recording a unique export 
     registration number and the total carat weight of the rough 
     diamonds enclosed;
       (3) A database containing information described in 
     paragraph (2) must be established for rough diamond exports 
     in each exporting country, including countries engaged in the 
     re-export of rough diamonds;
       (4) No country may allow importation of rough diamonds 
     unless they are sealed in a secure, transparent container 
     that includes a fully visible document that states a unique 
     export registration number for such container and the total 
     carat weight of the rough diamonds enclosed. The legitimacy 
     of such document must be verified by electronic or other 
     reliable means with the database maintained in the country of 
     export.
       (5) Provisions shall be made for physical inspection of 
     sealed containers of rough diamonds by appropriate 
     authorities.
       (6) Diamonds may be freely imported and exported from a 
     country that implements and enforces a rough diamond 
     certification system that contains the elements specified in 
     paragraphs (1) through (5), or a system that is its 
     functional equivalent, provided that the country of 
     extraction need only be specified when rough diamonds are 
     exported from such country and need not be specified when 
     rough diamonds are exported from a country that implements 
     and enforces such a rough diamond certification system.

     SEC. 204. CONSULTATIONS WITH CONGRESS.

       The President of the United States shall consult 
     periodically with Congress in developing and negotiating 
     proposals for an international agreement as described in 
     sections 202 and 203.

     SEC. 205. REPORT TO CONGRESS.

       The President of the United States will provide a written 
     report to Congress no later than 180 days after enactment of 
     this Act and annually thereafter on the progress made towards 
     concluding an international agreement and the progress of the 
     signatories to that agreement in implementing it, including 
     which countries are not implementing it and the effects of 
     their actions on trade in conflict diamonds. Each report 
     shall also describe any technological advances that permit 
     determining a diamond's origin, marking a diamond, and 
     tracking it.

     SEC. 206. IMPLEMENTING LEGISLATION.

       The President of the United States will submit to Congress 
     a draft bill implementing the provisions of any agreement 
     that is negotiated no later than 60 calendar days after 
     entering into that agreement.

     SEC. 207. EFFECTIVE DATE.

       Title I will apply with respect to articles entered, or 
     withdrawn from warehouse for consumption, six months after 
     the date of enactment of this Act. Title II will take effect 
     on the date of enactment of this Act.

                      TITLE III--OTHER PROVISIONS

     SEC. 301. AUTHORIZATION OF APPROPRIATIONS.

       Such sums as may be necessary are hereby authorized to be 
     appropriated to implement the provisions of this Act, 
     including such sums as are necessary to assist the 
     governments of Sierra Leone and Angola to establish and 
     maintain a diamond certification system.

     SEC. 302. SEVERABILITY.

       If any provision of this Act or the application of such 
     provision to any person or circumstance is held invalid, it 
     is the intent of Congress that the remainder of this Act and 
     application of such provision to other persons or 
     circumstances will not be affected thereby.

     SEC. 303. GAO REPORT.

       The General Accounting Office shall report to Congress on 
     the effectiveness of this Act no later than three years after 
     the date of enactment of this Act.
                                 ______