[Congressional Record Volume 149, Number 59 (Friday, April 11, 2003)]
[House]
[Pages H3332-H3334]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
CLEAN DIAMOND TRADE ACT
Mr. THOMAS. Mr. Speaker, I ask unanimous consent to take from the
Speaker's table the bill (H.R. 1584) to implement effective measures to
stop trade in conflict diamonds, and for other purposes, with a Senate
amendment thereto, and concur in the Senate amendment.
The Clerk read the title of the bill.
The Clerk read the Senate amendment, as follows:
Senate Amendment:
Strike out all after the enacting clause and insert:
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
[[Page H3333]]
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.
Mr. THOMAS (during the reading). Mr. Speaker, I ask unanimous consent
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that the Senate amendment be considered as read and printed in the
Record.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from California?
There was no objection.
The SPEAKER pro tempore. Is there objection to the original request
of the gentleman from California?
There was no objection.
A motion to reconsider was laid on the table.
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