Rough diamonds
- Document symbol
- G/LIC/N/3/EU/13
- Original language
- English
- Published on
- 19/11/2024
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 EU participates in the Kimberley Process Certification Scheme as a single participant representing all 27 EU Member States. The Kimberley Process establishes minimum requirements for an international scheme of certification for rough diamonds with a view to breaking the link between armed conflict and the trade in rough diamonds.
The system applies to rough diamonds originating in and coming from a Kimberley Process Participant. A Participant is defined as a State, international organization of States or dependent territory of a State, or a customs territory.
Rough diamonds may legally be imported to or exported from any of the Member States. Every person who imports rough diamonds must ensure that the diamonds are in a tamper-resistant container that meets the requirements of the regulations and are accompanied by a valid Kimberley Process Certificate issued by a Participant. In-transit rough diamonds are deemed not to be imported or exported. Since 30 March 2014, Greenland, one of the overseas countries and territories participates in the Kimberley Process Certification Scheme through its cooperation with the EU.
Purposes and Coverage of Licensing
Q2. Identify each licensing system maintained and state what products, appropriately grouped, are covered.
A rough diamond is defined as a diamond that is unsorted, unworked or simply sawn, cleaved or bruted, and that falls under subheading 7102 10 00, 7102 21 00 or 7102 31 00 of the Combined Nomenclature (Council Regulation (EEC) No. 2658/87 on the tariff and statistical nomenclature and on the Common Customs Tariff (OJ L 256, 7.9.1987, p. 1) and its subsequent amendments. A consolidated version of the Regulation can be consulted at the following address: EUR-Lex - 01987R2658-20230617 - EN - EUR-Lex (europa.eu)
Q3. The system applies to goods originating in and coming from which countries?
The system applies to rough diamonds originating in and coming from a participant. A participant is defined as a State, international organization of States or dependent territory of a State, or a customs territory.
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?
Importers or economic operators can freely choose a point of entry at an external border of the EU for the import of rough diamonds. However, every import of rough diamonds must first be verified by an EU authority, including those destined to Greenland. An EU authority is a competent authority designated by a Member State and agreed by the Commission to fulfil reliably, timely, effectively and adequately the tasks required by the Regulation, namely the verification of incoming shipments and KP certificates for conformity with KP rules.
Acceptance of a customs declaration for release for free circulation of rough diamonds pursuant to Regulation (EU) No 952/2013 of the European Parliament and of the Council can only happen after the containers and certificates had been verified by an EU competent authority.
Licensing System:
An administrative procedure used for the operation of import of rough diamonds, i.e. the act of the verification of a KP certificate is required. Some EU Member States with Union authorities also require that diamond traders be licensed.
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?
Legal basis:
Council Regulation (EC) No. 2368/2002 of 20 December 2002 implementing the Kimberley Process certification scheme for the international trade in rough diamonds. (OJ L 358, 31.12.2002, p. 28) and its amendments. The latest consolidated version of the Regulation can be consulted at the following address: EUR-Lex - 02002R2368-20220825 - EN - EUR-Lex (europa.eu)
The Regulation provides for controls on the import, export or transit across the EU of rough diamonds in order to meet the EU's obligations under the Kimberley Process Certification Scheme.
Article 3 of Council Regulation (EC) No 2368/2002 provides that the import of rough diamonds into the EU shall be prohibited unless all of the following conditions are fulfilled:
(a) The rough diamonds are accompanied by a certificate validated by the competent authority of a participant (i.e. of the Kimberley Process);
(b) The rough diamonds are contained in tamper-resistant containers, and the seals applied at export by that participant are not broken;
(c) The certificate clearly identifies the consignment to which it refers.
Article 4 of Council Regulation (EC) No. 2368/2002 provides:
1. Containers and the corresponding certificates shall be submitted for verification, together and at the earliest opportunity, to a Union authority either in the Member State where they are imported or in the Member State for which they are destined, as indicated in the accompanying documents.
2. In cases where rough diamonds are imported into a Member State where there is no Union authority, they shall be submitted to the appropriate Union authority in the Member State for which they are destined. If a Union authority exists neither in the importing Member State nor in the Member State of destination, or with regard to rough diamonds coming from/destined to Greenland, they shall be submitted to an appropriate Union authority in another Member State.
3. The Member State where the rough diamonds are imported shall ensure their submission to the appropriate Union authority provided for in paragraphs 1 and 2. Customs transit may be granted to that effect. If such customs transit is granted, the verification provided for by this Article shall be suspended until arrival at the appropriate Union authority.
There are currently seven Union Authorities in: Antwerp (Belgium); Idar- Oberstein (Germany); Prague (Czech Republic); Bucharest (Romania); Lisbon (Portugal); Dublin (Ireland); Torino (Italy).
Contact details are available in Annex II of Council Regulation (EC) No 2368/2002.
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)?
All imports of rough diamonds entering the European Union shall without delay be submitted for verification to a Union authority either in the member State where they are imported or in the member State for which they are destined, as indicated in accompanying documents. Containers destined for Greenland shall be submitted for verification to one of the Union authorities, either in the member State where they are imported, or in one of the other member States where a Union authority is established.
Q7.b. Can a licence be granted immediately on request?
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.
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?
The Kimberley Process Certification Scheme is implemented through the national legislation of the respective participants. The European Commission represents the European Union and Greenland in the Kimberley Process Certification Scheme.
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?
If an application for an EU licence for imports does not meet the criteria for import, each EU member State imposes its own sanctions. If a Union authority finds that the failure to fulfil the conditions is not made knowingly or intentionally or is the result of an action by another authority in the exercise of its proper duties, it may proceed with the confirmation and release the shipment, after the necessary remedial measures have been taken to ensure that the conditions are met.
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?
Import licences are issued by an EU authority by means of verification. Some member States require that rough diamond traders be registered.
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?
The Kimberley Process Certificate means a forgery resistant document with a particular format which identifies a shipment of rough diamonds as being in compliance with the requirements of the Certification Scheme, and is issued by the competent authority of a participant of the Kimberley Process.
Q11. What documents are required upon actual importation?
The import of rough diamonds into the Union shall be prohibited unless all of the following conditions are fulfilled: a) the rough diamonds are accompanied by a certificate validated by the competent authority of a participant (i.e. of the Kimberley Process); b) the rough diamonds are contained in tamper-resistant containers and the seals applied at export by that participant are not broken; c) the certificate clearly identifies the consignment to which it refers. Every import must be verified by a Union authority, which fulfils the task of verifying incoming shipments and Kimberley Process Certificates for conformity with the Kimberley Process requirements.
Q12. Is there any licensing fee or administrative charge? If so, what is the amount of the fee or charge?
Not applicable. However, it is to be noted that Union Kimberley Process authorities may charge fees for issuing export certificates.
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.
Conditions of Licensing
Q14. What is the period of validity of a licence? Can the validity of a licence be extended? How?
Authentic KP certificate accompanying the Kimberley Process certificate, within the period of validity; this may vary depending on the issuing country. The certificate must be valid for the shipment to be accepted in the EU. The Union authority shall keep the originals of certificates submitted for verification for at least three years.
Q15. Is there any penalty for the non-utilization of a licence or a portion of a licence?
Q16. Are licences transferable between importers? If so, are any limitations or conditions attached to such transfer?
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?
Tamper resistant container with unbroken seals.