    [United States Statutes at Large, Volume 117, 108th Congress, 1st Session]
    [From the U.S. Government Publishing Office, www.gpo.gov]

    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

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    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

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    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

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    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

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    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.

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    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.

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    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.