Rough diamonds
- Document symbol
- G/LIC/N/3/BRA/12
- Original language
- English
- Published on
- 21/09/2023
Outline of Systems
Q1. Give a brief description of each licensing system as a whole and, with respect to each, reply to the following questions as relevant, placing all of the material with respect to a given system in sequence together, and using cross references as appropriate when elements which have already been described are also present in another system.
The National Mining Agency (ANM) does not have its own licensing system for the administrative handling of imports of raw diamonds, a procedure which is carried out entirely in the SISCOMEX.
Purposes and Coverage of Licensing
Q2. Identify each licensing system maintained and state what products, appropriately grouped, are covered.
Imports of rough diamonds (NCM 71021000, 71022100 and 71023100.
Q3. The system applies to goods originating in and coming from which countries?
Only among the member countries of the Kimberley Process International Agreement. Namely: Angola; Armenia; Australia; Bangladesh; Belarus; Botswana; Cambodia; Cameroon; Canada; Central African Republic; China; Congo (DRC); Congo (ROC); Cote d'Ivoire; Eswatini (formerly Swaziland); European Union; Gabon; Ghana; Guinea; Guyana; India; Indonesia; Israel; Japan; Kazakhstan; Lao PDR; Lebanon; Lesotho; Liberia; Malaysia; Mali; Mauritius; Mexico; Namibia; New Zealand; Norway; Panama; Russian Federation; Sierra Leone; Singapore; South Africa; South Korea; Sri Lanka; Switzerland; Tanzania; Thailand; Togo; Turkey; Ukraine; United Arab Emirates; United Kingdom; United States of America; Venezuela; Viet Nam; Zimbabwe.
Q4. Is the licensing intended to restrict the quantity or value of imports, and if not, what are its purposes? Have alternative methods of accomplishing the purposes been considered and if so which? Why have they not been adopted?
The purpose of the licensing is to verify the mandatory presentation of the Kimberley Process Certification (CPK) and to verify compliance of the information contained in the CPK with the data declared by the importer in completing the Import License (LI), as well as the Consignment Invoice data. The certification procedure for raw diamonds, through CPK, aims to prevent the financing of conflicts for their trade. No alternative methods to achieve the objectives were considered.
Q5. Cite the law, regulation and/or administrative order under which the licensing is maintained. Is the licensing statutorily required? Does the legislation leave designation of products to be subjected to licensing to administrative discretion? Is it possible for the government (or the executive branch) to abolish the system without legislative approval?
- Law No. 10.743 of 9 October 2003. It establishes in Brazil the Kimberley Process Certification System - SCPK regarding the export and import of rough diamonds and provides other measures: http://www.planalto.gov.br/ccivil_03/LEIS/2003/L10.743.htm. Article 7 - Imports of raw diamonds will be accompanied by the Kimberley Process Certification, issued by the competent authorities of the country of origin, and the submission of such a certification shall be compulsory at the time of non-automatic licensing by the DNPM.
- Ordinance No. 192 of 25 May 2007 of the General Director of DNPM. It regulates the issuance of the Kimberley Process Certification – CPK for export and consent for imports of rough diamonds, establishes the National Register of Raw Diamonds Trade, the Transaction Report on the Production and Commercialization of Raw Diamonds and provides other measures: https://www.legisweb.com.br/legislacao/?id=201278.
- Joint Ordinance DNPM/SRF No. 397 of 13 October 2003 - It establishes the Kimberley Process Certification System in the national territory: http://normas.receita.fazenda.gov.br/sijut2consulta/link.action?visao=anotado&idAto=27416.
Article 2 The prior consent will be requested: II - through the use of the non-automatic licensing module of SISCOMEX, in the case of import.
Yes, licensing is mandatory by law (Law No. 10.743 of 9 October 2003), which states that imports of raw diamonds will be accompanied by the Kimberley Process Certification issued by the competent authorities of the country of origin, and the submission of such a certification shall be compulsory at the time of non‑automatic licensing by the DNPM.
Yes, the legislation is subject to administrative discretion of the designation of the products subject to licensing.
No, it is not possible for the government (or executive) to abolish the system without legislative approval.
Procedures
Q6. For products under restriction as to the quantity or value of imports (whether applicable globally or to a limited number of countries or whether established bilaterally or unilaterally):
Q6.I. Is information published, and where, concerning allocation of quotas and formalities of filing applications for licences? If not, how is it brought to the attention of possible importers? Of governments and export promotion bodies of exporting countries and their trade representatives? Is the overall amount published? The amount allocated to goods from each country? The maximum amount allocated to each importer? How to request any exceptions or derogations from the licensing requirement?
Q6.II. How is the size of the quotas determined: on a yearly, six-monthly or quarterly basis? Are there cases where the size of quota is determined on a yearly basis but licences are issued for imports on a six-monthly or quarterly basis? In the latter case, is it necessary for importers to apply for fresh licence on a six-monthly or quarterly basis?
Q6.III. Are licences allotted for certain goods partly or only to domestic producers of like goods? What steps are taken to ensure that licences allocated are actually used for imports? Are unused allocations added to quotas for a succeeding period? Are the names of importers to whom licences have been allocated made known to governments and export promotion bodies of exporting countries upon request? If not, for what reason? (Indicate products to which replies relate.)
Q6.IV. From the time of announcing the opening of quotas, as indicated in I above, what is the period of time allowed for the submission of applications for licences?
Q6.V. What are the minimum and maximum lengths of time for processing applications?
Q6.VI. How much time remains, at a minimum, between the granting of licences and the date of opening of the period of importation?
Q6.VII. Is consideration of licence applications effected by a single administrative organ? Or must the application be passed on to other organs for visa, note or approval? If so, which? Does the importer have to approach more than one administrative organ?
Q6.VIII. If the demand for licences cannot be fully satisfied, on what basis is the allocation to applicants made? First come, first served? Past performance? Is there a maximum amount to be allocated per applicant and, if so, on what basis is it determined? What provision is made for new importers? Are applications examined simultaneously or on receipt?
Q6.IX. In the case of bilateral quotas or export restraint arrangements where export permits are issued by exporting countries, are import licences also required? If so, are licences issued automatically?
Q6.X. In cases where imports are allowed on the basis of export permits only, how is the importing country informed of the effect given by the exporting countries to the understanding between the two countries?
Q6.XI. Are there products for which licences are issued on condition that goods should be exported and not sold in the domestic market?
Q7. Where there is no quantitative limit on importation of a product or on imports from a particular country:
Q7.a. How far in advance of importation must application for a licence be made? Can licences be obtained within a shorter time-limit or for goods arriving at the port without a licence (for example, owing to inadvertency)?
Application for a license shall be made preferably before the goods have landed in Brazil. The license shall be granted to the extent that the importer has submitted all compulsory documentation duly regularized. There is no specific regulation for cases of goods arriving at the port without a license.
Q7.b. Can a licence be granted immediately on request?
The license is performed digitally by an authorized public agent of ANM. It is not performed automatically via the system.
Q7.c. Are there any limitations as to the period of the year during which application for licence and/or importation may be made? If so, explain.
No.
Q7.d. Is consideration of licence applications effected by a single administrative organ? Or must the application be passed on to other organs for visa, note or approval? If so, which? Does the importer have to approach more than one administrative organ?
Yes, only by ANM. No, the request is not forwarded to other bodies for signature, note or approval.
Q8. Under what circumstances may an application for a licence be refused other than failure to meet the ordinary criteria? Are the reasons for any refusal given to the applicant? Have applicants a right of appeal in the event of refusal to issue a licence and, if so, to what bodies and under what procedures?
Eligibility of Importers to Apply for Licence
Q9. Are all persons, firms and institutions eligible to apply for licences: (If not, is there a system of registration of persons or firms permitted to engage in importation? What persons or firms are eligible? Is there a registration fee? Is there a published list of authorized importers?) a) under restrictive licensing systems? b) under non-restrictive systems?
Persons or companies authorized to make imports must be duly registered and qualified in the National Diamond Trade Register System (CNCD) of ANM, an instrument for monitoring the commercialization of rough diamonds throughout the national territory. https://app.anm.gov.br/CNCD/site/cadastro/acesso.aspx.
As stated in Ordinance No. 192 of 25 May 2007 - Article 6, every producer or trader of rough diamonds in the national territory, including importer and exporter, must register on the CNCD.
As stated in Ordinance No. 192 of 25 May 2007 - Article 7, the registration on the CNCD will be accompanied by the following information and evidence:
(i) in the case of a natural person, certified copies of an official identity document with photo and of the CPF or CNPJ; or simple copies, with presentation of the original documents;
(ii) in the case of a legal entity, original of the articles of incorporation or certified copy with due registration in the Board of Trade; and
(iii) Instrument of mandate in original or certified copy, in case the applicant is represented by a third party.
When filling out the CNCD, sales made by the applicant from 1 October 2005 in the domestic market shall be informed.
The confirmation of the registration will be effective with the protocol of the form printed in accordance with the caput of this article, after which the user's access to the system will be released, with the credentials provided in the registration.
There is no registration fee. The list with the information of the importers registered in the CNCD is not public, it is used only for internal consultation of ANM.
Documentational and Other Requirements for Application for Licence
Q10. What information is required in applications? Submit a sample form. What documents is the importer required to supply with the application?
In addition, to carrying out the import procedure, the importer must initiate an administrative process in the Electronic Information System (SEI) of ANM, through which the entire process will be carried, including the annexation of the Kimberley Certification of the country of origin and other required documentation.
Also, the importer should issue the payment slip for the "Prior Consent For Diamond Import" in the ANM collection system (https://sistemas.anm.gov.br/dipar_externo/cobranca/emolumentos.asp), pay it and the attachment of the respective proof of payment among the documentation required in the ANM SEI process.
As stated in Ordinance No. 192 of 25 May 2007 - Article 7, the registration in the CNCD will be requested by means of its own form, available on the DNPM website, addressed to the General Director of DNPM, which, after being sent over the Internet, will be printed in three counterparts (DNPM - District; DNPM - Headquarters and applicant) and filed in any DNPM District, accompanied by instruction and evidence.
A sample form is available at https://app.anm.gov.br/CNCD/site/cadastro/acesso.aspx.
Q11. What documents are required upon actual importation?
The procedure for importing rough diamonds begins with the importer or legal guardian opening proceedings in the ANM's SEI. In the SEI process, the importer should make the following mandatory documents available for the consent process:
- Official communication sent to the ANM Director requesting authorization for import;
- Copy of the Import License Statement – LI (SISCOMEX);
- Copy of the CPK of the exporting country;
- Consignment Invoice;
- SEI protocol electronic receipt of ANM;
- Proof of the bank slip payment.
Q12. Is there any licensing fee or administrative charge? If so, what is the amount of the fee or charge?
There is a mandatory payment of the fee "Prior Consent For Diamond Import" in the amount of R$ 120.49 requested through the site: https://sistemas.anm.gov.br/dipar_externo/cobranca/emolumentos.asp.
Q13. Is there any deposit or advance payment requirement associated with the issue of licences? If so, state the amount or rate, whether it is refundable, the period of retention and the purpose of the requirement.
No.
Conditions of Licensing
Q14. What is the period of validity of a licence? Can the validity of a licence be extended? How?
The validity period of the License is conditional on the validity period of the CPK accompanying the imported batch of raw diamonds. The validity period of CPK is 60 days from its issuance. The license validity cannot be extended, since, after expiration of the CPK, it becomes impossible to complete the administrative handling of the import.
Q15. Is there any penalty for the non-utilization of a licence or a portion of a licence?
No.
Q16. Are licences transferable between importers? If so, are any limitations or conditions attached to such transfer?
No.
Q17. Are any other conditions attached to the issue of a licence? a) for products subject to quantitative restriction? b) for products not subject to quantitative restriction?
No.
Other Procedural Requirements
Q18. Are there any other administrative procedures, apart from import licensing and similar administrative procedures, required prior to importation?
Yes, only the registration of the importer with the National REGISTER OF DIAMOND TRADE (CNCD) system of ANM.