Sunday, 5 February 2012

THE KIMBERLEY PROCESS

THE KIMBERLEY PROCESS

To prevent diamonds from areas of conflict entering into the legitimate diamond supply chain, diamonds are monitored at every point of the diamond pipeline, from mining through to retail. These monitoring processes are called the Kimberley Process and System of Warranties.
 
The Kimberley Process is a United Nations mandated system, and today more than 99 percent of all diamonds are certified through the Kimberley Process to be from conflict free sources. The Kimberley Process operates as follows: After rough diamonds are mined, they are transported to recognised Government Diamond Offices, where the source of the diamonds is checked to ensure it is conflict free.
 
The diamonds are then sealed and placed into tamper resistant containers and issued a government-validated Kimberley Process Certificate, each bearing a unique serial number. Only countries that have implemented the principles of the Kimberley Process and have it enshrined in their national law may legitimately export rough diamonds. Diamonds can only legally be imported into one of Kimberley Process countries.
 
Once diamonds are imported, the government customs office, in conformance with its national procedures, checks the certificate and seals on the container. Any rough diamonds without a government-validated Kimberley Certificate or that are unsealed are turned back or impounded by Customs. Each time the diamond changes hands it must be accompanied by a warranty on invoices stating that the diamond is not from a conflict source. This is called the System of Warranties.
 
Manufacturers/traders are required to audit these System of Warranties statements on their invoices as part of their annual audit process and to keep records for five years. Retailers are responsible for ensuring that the diamonds they stock and sell carry a warranty that they are conflict free. Retailers are required to audit these Systems of Warranties statements on their invoices as part of their annual audit process and to keep records for five years. Consumers can ask for assurances from their retailers that their diamond is from sources free from conflict.