Rough diamonds
- Document symbol
- G/LIC/N/3/GBR/3
- Original language
- English
- Published on
- 07/12/2023
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 UK's rough diamonds import regime controls the import, export and transit of rough diamonds, in line with the requirements of the Kimberley Process. The Kimberley Process is a regulatory certification scheme set up by States with the aim of breaking the link between armed conflict and the trade in rough diamonds.
The Kimberley Process has established a set of requirements which participants must comply with and enforce through enacting national legislation. This includes ensuring that a Kimberley Process Certificate accompanies each export of rough diamonds from their territory, and no shipment of rough diamonds is imported to or exported from a non-participant.
The Government Diamond Office in the Foreign, Commonwealth and Development Office, is responsible for implementing the Kimberley Process in the UK.
Purposes and Coverage of Licensing
Q2. Identify each licensing system maintained and state what products, appropriately grouped, are covered.
Rough diamond imports must be accompanied by a Kimberley Process certificate issued and validated by the competent authority of the exporting participant. A competent authority means the authority designated by a participant to issue, validate or verify a certificate. A certificate means a document duly issued and validated by a participant's competent authority identifying a shipment of rough diamonds as being in compliance with the requirements of the Kimberley Process certificate scheme.
Rough diamonds are diamonds that are unworked or simply sawn, cleaved or bruted and fall under the relevant trade tariff commodity codes – 7102.1000 (unsorted rough diamonds), 7102.2100 (industrial rough diamonds) and 7102.3100 (non-industrial rough diamonds).
Q3. The system applies to goods originating in and coming from which countries?
The import regime applies to rough diamonds being imported from a Kimberley Process participant. A participant is defined as any State, regional economic integration organisation, WTO-member or separate customs territory that fulfils the requirements of the KP certification scheme and has notified that fact to the Chair of the KP certification scheme. Rough diamond imports from non-participants of the Kimberley Process will be denied entry.
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 import regime does not restrict the quantity or value of imports. The purpose of the UK's import regime is to enforce the requirements of the Kimberley Process, a conflict prevention measure designed to break the link between armed conflict and the trade in rough diamonds.
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?
Retained EU law: Council Regulation (EC) No. 2368/2002 of 20 December 2002 implementing the Kimberley Process certification scheme for the international trade in rough diamonds.
UK legislation: The Kimberley Process Certification Scheme (Amendment) (EU Exit) Regulations 2019, The Kimberley Process Certification Scheme (Amendment) (EU Exit) Regulations 2020, and The Kimberley Process (Fees) Regulations 2014.[1]
[1] Specific arrangements apply in Northern Ireland including by virtue of the Protocol on Ireland/Northern Ireland. Further details on the operation of the Protocol on Ireland/Northern Ireland can be found at https://www.gov.uk/guidance/export-diamonds-special-rules.
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)?
The UK's import regime begins when the rough diamond import arrives at the UK border. The importer must make arrangements for the Kimberley Process certificate to be presented to the border authorities.
Q7.b. Can a licence be granted immediately on request?
There are a number of Kimberley Process related import conditions which must be satisfied. Only after it has been confirmed that the import complies with the conditions set out in 11 below will the import be granted entry (subject to compliance with any other import requirements not related to the Kimberley Process).
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.
There is no limitation as to the period of the year when an import of rough diamonds can arrive in the UK.
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 Government Diamond Office works with border authorities (UK Border Force and HM Revenues and Customs) to check if rough diamond imports comply with the import conditions set out in 11 below. All imports of rough diamonds may be subject to physical inspection by the Government Diamond Office to confirm compliance.
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 the rough diamond import does not comply with the import conditions set out in 11 below, it will be detained for further investigation by the Government Diamond Office. As part of the investigation, the Government Diamond Office will advise the importer why the import has failed compliance and discuss ways to rectify. Rough diamond imports can only be granted entry into the UK once all import 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?
All persons, firms and institutions are eligible to import rough diamonds into the UK providing the import complies with the import conditions set out in 11 below (and any other import requirements not related to the Kimberley Process), including being accompanied by a Kimberley Process certificate issued and validated by the competent authority of the exporting participant. The terms and conditions associated with the application and issuing of a certificate will be determined by the competent authority of the exporting participant and may vary from participant to participant.
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?
Rough diamond imports must be accompanied by a Kimberley Process certificate issued and validated by the competent authority of the exporting participant. The terms and conditions associated with the application and issuing of a Kimberley Process certificate are determined by the competent authority of the exporting participant and may vary from participant to participant. A competent authority means the authority designated by a participant to issue, validate or verify a certificate. A certificate means a document duly issued and validated by a participant's competent authority identifying a shipment of rough diamonds as complying with the requirements of the Kimberley Process certificate scheme.
Q11. What documents are required upon actual importation?
There are a number of Kimberley Process related import conditions which must be satisfied. These conditions are that:
- The rough diamonds are accompanied by a Kimberley Process certificate validated by the competent authority of a Kimberley Process participant.
- The rough diamonds are contained in tamper-resistant containers, and the seals applied at export by the participant are not broken.
- The Kimberley Process certificate clearly identifies the consignment to which it refers.
Q12. Is there any licensing fee or administrative charge? If so, what is the amount of the fee or charge?
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?
The Kimberley Process certificate must be within the period of validity when the import arrives at the UK border. If the certificate is not within the period of validity, the import will be detained for further investigation by the Government Diamond Office.
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?
The name and address of the importer on the certificate must be the same as the name and address of the actual importer. Therefore, it is not transferable.
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?
Other Procedural Requirements
Q18. Are there any other administrative procedures, apart from import licensing and similar administrative procedures, required prior to importation?
Customs declarations.
Q19. Is foreign exchange automatically provided by the banking authorities for goods to be imported? Is a licence required as a condition to obtaining foreign exchange? Is foreign exchange always available to cover licences issued? What formalities must be fulfilled for obtaining the foreign exchange?
Not applicable for the UK's import requirements.