[108th Congress Public Law 19]
[From the U.S. Government Printing Office]


[DOCID: f:publ019.108]

[[Page 117 STAT. 631]]

Public Law 108-19
108th Congress

                                 An Act


 
To implement effective measures to stop trade in conflict diamonds, and 
       for other purposes. <<NOTE: Apr. 25, 2003 -  [H.R. 1584]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress <<NOTE: Clean Diamond Trade 
Act.>> assembled,

SECTION 1. <<NOTE: 19 USC 3901 note.>> SHORT TITLE.

    This Act may be cited as the ``Clean Diamond Trade Act''.

SEC. 2. <<NOTE: 19 USC 3901.>> 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

[[Page 117 STAT. 632]]

        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. <<NOTE: 19 USC 3902.>> 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

[[Page 117 STAT. 633]]

        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. <<NOTE: 19 USC 3903.>> MEASURES FOR THE IMPORTATION AND 
            EXPORTATION OF ROUGH DIAMONDS.

    (a)  <<NOTE: President.>> 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

[[Page 117 STAT. 634]]

            (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. <<NOTE: President. 19 USC 3904.>> 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. <<NOTE: 19 USC 3905.>> 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)  <<NOTE: President. Federal Register, publication.>> 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. <<NOTE: 19 USC 3906.>> 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. <<NOTE: 19 USC 3907.>> 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

[[Page 117 STAT. 635]]

        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. <<NOTE: 19 USC 3908.>> 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. <<NOTE: 19 USC 3909.>> 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. <<NOTE: Establishment. President. 19 USC 3910.>> 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.

[[Page 117 STAT. 636]]

            (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. <<NOTE: Deadlines. President. 19 USC 3911.>> 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. <<NOTE: Deadline. 19 USC 3912.>> 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. <<NOTE: 19 USC 3913.>> 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.

[[Page 117 STAT. 637]]

SEC. 15. <<NOTE: 19 USC 3901 note. President. Certification.>> 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.

    Approved April 25, 2003.

LEGISLATIVE HISTORY--H.R. 1584:
---------------------------------------------------------------------------

CONGRESSIONAL RECORD, Vol. 149 (2003):
            Apr. 8, considered and passed House.
            Apr. 10, considered and passed Senate, amended.
            Apr. 11, House concurred in Senate amendment.
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 39 (2003):
            Apr. 25, Presidential statement.

                                  <all>