Rough diamonds
- Document symbol
- G/LIC/N/3/AUS/16
- Original language
- English
- Published on
- 27/11/2023
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.
Australia is a participant to the Kimberley Process (KP) and the Kimberley Process Certification Scheme (KPCS). Australian legislation implements our obligations under this international agreement.
The importation of rough diamonds is prohibited under regulation 4MA of the Customs (Prohibited Imports) Regulations 1956 (PI Regulations) unless the diamonds are transported in a tamper-proof container, exported from a country that is a participant of the KPCS and accompanied by a valid KP Certificate, and the original certificate is produced to a collector at or before the time of importation. KP Certificates are issued by the relevant export authority in the country exporting the goods to Australia. An original and valid KP Certificate must be presented to the Australian Border Force (ABF) at the time of importation.
The importer must retain the original KP Certificate for a period of five years after the time of importation. The certificate must be made available to the Department of Industry, Science and Resources (DISR) if requested.
The Department of Foreign Affairs and Trade (DFAT) is Australia's lead Policy KP Focal Point, the ABF within the Home Affairs Portfolio is the import authority for the KPCS in Australia and DISR is the export authority for the KPCS in Australia.
Purposes and Coverage of Licensing
Q2. Identify each licensing system maintained and state what products, appropriately grouped, are covered.
The KP is an international agreement aimed at preventing the entry of "conflict diamonds" into the legitimate global supply chain. The trade in conflict diamonds is a matter of serious international concern, which can be directly linked to the fuelling of armed conflict, the activities of rebel movements aimed at undermining or overthrowing legitimate governments, and the illicit traffic in, and proliferation of small arms and light weapons.
"Rough diamonds" means diamonds that are unworked or simply sawn, cleaved or bruted and fall under the relevant Harmonised Commodity Description and Coding System 7102.10, 7102.21 and 7102.31.
Q3. The system applies to goods originating in and coming from which countries?
The KPCS is an international certification scheme that outlines the rules and standards that govern global trade and production of all rough diamonds, and applies to all Participant countries of the KP.
Participants of the KP must meet the terms of KPCS, including issuing export certificates to verify rough diamonds are conflict free.
Under the terms of the KPCS participants must:
• satisfy minimum requirements and establish national legislation, institutions and import/export controls;
• commit to transparent practices and to the exchange of critical statistical data;
• trade only with fellow members who also satisfy the fundamentals of the agreement;
• certify shipments as conflict-free and provide the supporting certification.
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 KPCS is not intended to restrict the quantity or value of imports.
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?
The control of imports of rough diamonds is a statutory requirement under regulation 4MA of the PI Regulations, made under the Customs Act 1901. The system cannot be abolished 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 and issue of a KP Certificate needs to be made in advance of arrival of the goods.
Q7.b. Can a licence be granted immediately on request?
KP Certificates are not normally issued immediately. The time taken to issue a KP Certificate is dependent on the time taken for completion of a number of checks by the exporting authority issuing the certificate. In some cases, this may take up to several weeks.
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, permits may be issued at any period of the year.
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?
KP Certificates are only issued by the exporting authority of a recognised KP Participant. KP Certificates are presented to the importing authority of a recognised KP Participant on import.
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?
Application for a KP Certificate to export rough diamonds can be refused at the discretion of the Exporting Authority in the exporting country. Reasons for refusal may or may not be provided to the applicant and will depend on the exporting authority protocols and internal controls.
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?
Any person, firm or institution is eligible to apply to an authorised KP Participant exporting authority for a KP Certificate.
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?
For permission to import rough diamonds, the importer must apply for a KP Certificate from the Exporting authority of the export country. Applications are made in writing and must provide the following:
• importer's name and address;
• proof of origin of rough diamonds being exported;
• original receipt of purchase of rough diamonds;
• an affirmative statement declaring all rough diamonds are produced from legitimate sources and are not conflict diamonds;
• country of import;
• carat weight;
• total value; and
• any other information as requested by the KP Participant exporting authority.
Q11. What documents are required upon actual importation?
The original KP Certificate must be presented to the ABF at the time of importation.
Q12. Is there any licensing fee or administrative charge? If so, what is the amount of the fee or charge?
Fees and charges for the issue of a KP Certificate is at the discretion of the KP Participant. Some KP Participants do charge a fee, while others do not.
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?
A KP Certificate is typically valid for a two-month period. However, KP Exporting Authorities can determine different expiry timeframes as required. This may be the case for frequent exporters. KP Certificates cannot be extended. If a KP Certificate is not presented to an importing authority of a KP Participant country prior to the expiry date, the exporter must apply for a new KP Certificate.
Q15. Is there any penalty for the non-utilization of a licence or a portion of a licence?
There is no penalty for the non-utilisation of a KP Certificate.
Q16. Are licences transferable between importers? If so, are any limitations or conditions attached to such transfer?
KP Certificates are not transferable between importers.
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?
Specified conditions for issuing a KP Certificate are set out by each individual KP Participant.
Other Procedural Requirements
Q18. Are there any other administrative procedures, apart from import licensing and similar administrative procedures, required prior to importation?
No.