• What is the Kimberley Process?
• Why is the conflict diamond issue important to Canada?
• What are the requirements of the Kimberley Process certification scheme?
• How are rough diamonds defined in terms of the Kimberley Process?
• How do I obtain a Canadian Kimberley Process Certificate?
• What happens to my Kimberley Process Certificate if it is over 90 days old?
• What do I do if I submitted an inaccurate Kimberley Process Certificate Application Form?
• How do I obtain a Kimberley Certificate from another participant?
• What do I do when I import rough diamonds from another participant?
• What do I do when I ship diamonds across Canada to another participant (in transit)?
• Do I have to import or export diamonds at designated points?
• What is the difference between Harmonized System (HS) codes and Standard Industrial Classification (SIC) or North American Industrial Classification System (NAICS) codes?
• What are rough diamonds?
• Is the Kimberley Process the voluntary code of conduct for diamonds?
• Does the Kimberley Process involve the appraisal of jewellery?

The "Kimberley Process" is the principal international initiative established to respond to the problem posed by the troubling linkage between rebel-directed conflicts and trade in rough diamonds in a number of African states.

In response to growing international pressure to address peace and security concerns, the Kimberley Process was launched in May 2000 by several southern African countries. The goal was to contribute to the stabilization of some African governments and national economies that either depended on their domestic diamond industry (e.g., Namibia, Botswana and South Africa) or had been devastated by ongoing conflicts funded by the trade in rough diamonds.

Canada has participated in the Kimberley Process since its inception. In December 2000, the United Nations General Assembly passed a resolution on the role of diamonds in fueling conflicts and gave worldwide endorsement to a plan to cut the ties between rebel forces in some African countries and the diamond trade that supports them. In March 2002, Canada hosted a pivotal meeting that produced consensus on the proposals for a new international certification scheme. At a ministerial meeting in Switzerland on November 5, 2002, ministers committed to simultaneous implementation of the scheme at national levels on January 1, 2003.

The international certification scheme includes several key commitments, including a requirement that all shipments of rough diamonds imported to or exported from Canada be certified under the scheme. It also contains trade prohibitions, banning the trade in rough diamonds with non-participants in the scheme.

Implementation of the scheme in Canada required the establishment of new rough diamond certification procedures and import and export controls, now embodied in the Export and Import of Rough Diamonds Act and its regulations.

Since the implementation of the Kimberley Process internationally, anyone wanting to export rough diamonds from Canada is required to apply to Natural Resources Canada to obtain a Canadian Kimberley Process Certificate. Rough diamond imports into Canada also have to be accompanied by a Kimberley Process Certificate obtained from the country of export. Rough diamonds for transit across Canada also have to be accompanied by a Kimberley Process Certificate from the original country of export. This certificate is to remain with the diamonds while they cross Canadian territory.

Why is the conflict diamond issue important to Canada?

Canada wishes to promote peace and security in African countries that have been devastated by the trade in conflict diamonds.

As a diamond-producing country, Canada is also concerned with preventing trade in conflict diamonds from negatively affecting the legitimate diamond trade.

What are the requirements of the Kimberley Process certification scheme?

Participants will:

• require that each export or import shipment of rough diamonds be accompanied by a Kimberley Process Certificate;
• ensure that no shipment of rough diamonds is imported from or exported to a non-participant;
• designate an importing and exporting authority;
• as required, amend or enact appropriate laws or regulations to implement and enforce the certification scheme; and
• collect and maintain relevant production, import and export data.

How are rough diamonds defined in terms of the Kimberley Process?

For the Kimberley Process, rough diamonds are defined using three subheadings from the Harmonized System of classifying goods for trade purposes. The same subheadings are used in the schedule to the Canadian Customs Tariff. Information on the Canadian Customs Tariff subheadings (Harmonized System) can be found on the Canada Customs and Revenue Agency (CCRA) web site. A PDF document on Customs Tariff Subheadings (Harmonized System) 7102.10, 7102.21 and 7102.31 is available. (PDF) - Accessibility Notice.

The three subheadings cover certain natural diamonds:

• Subheading 7102.10 includes only unsorted diamonds.
• Subheading 7102.21 includes only industrial diamonds that are unworked or simply sawn, cleaved or bruted.
• Subheading 7102.31 includes only non-industrial (e.g., gem and near-gem) diamonds that are unworked or simply sawn, cleaved or bruted.

For more information, please contact:

Olga Mendez, Senior Program Officer
Textiles, Apparel and Primary Products Unit
Tariff Classification and International
Nomenclature Division
Trade Policy and Interpretation Directorate
7th Floor, Sir Richard Scott Building
191 Laurier Avenue West
Ottawa ON K1A 0L5

Telephone: (613) 948-1282
Facsimile: (613) 952-4074

How do I obtain a Canadian Kimberley Process Certificate?

Canadian businesses need to obtain a Canadian Kimberley Process Certificate when they plan to export rough diamonds from Canada if the diamonds fall under subheadings 7102.10, 7102.21 or 7102.31 in the schedule to the Customs Tariff. The exporting authorities in both Canada and the destination country will require this certificate to verify that the Canadian exporter is meeting all the requirements of the international Kimberley Process understanding.

The new Canadian regulations affect how exporters ship, handle, package and certify the rough diamonds they plan to export from Canada.

To obtain a Canadian Kimberley Process Certificate, exporters need to follow these simple steps:

Step 1: Contact the Kimberley Process Office at Natural Resources Canada (NRCan) for an Application Form

The Canadian Kimberley Process Certificate Application form can be mailed to you or provided electronically. Call, write or e-mail your request for an application form to the Kimberley Process Office or obtain a copy from the web site.

Step 2: Complete and Submit the Kimberley Process Certificate Application Form

Complete the application form in accordance with its accompanying completion guide. The application requires information about the value of the shipment, its weight, and the name and address of the exporter and the person to whom the exporter is sending the rough diamonds.

Submit the completed application form to the Kimberley Process Office at NRCan by courier, mail, fax or on-line.

Step 3: Obtain Your Canadian Kimberley Process Certificate

Upon receipt of a completed application form, the Canadian Kimberley Process Certificate will be couriered, normally within 7 days. Certificates obtained from NRCan are valid for 90 days and cannot be extended. Each and every shipment of rough diamonds requires a distinct Canadian Kimberley Process Certificate, although a single shipment consisting of several containers requires only one certificate. Each certificate will have a unique serial number issued by the Kimberley Process Office.

Step 4: Prepare Diamonds for Shipping

Canadian legislation and regulations match the international standards set out by the Kimberley Process for the shipping, handling and packaging of rough diamonds. Information about the regulations is available on the Kimberley Process web site.
(Note: Any open packaging will be considered non-compliant and may result in the shipment being detained or seized at the border.)

Step 5: Presenting Your Certificate/Making a Declaration

Every exporter of rough diamonds will be responsible for presenting a Canadian Kimberley Process Certificate at the time of export. The Canada Customs and Revenue Agency (CCRA) will stamp an export declaration attached to the certificate. Exporters must then forward the declaration to the Kimberley Process Office at NRCan within seven days from the date of export.

The Canadian Certificate itself must accompany the shipment of rough diamonds from Canada to the Customs Office of the destination country. At the destination customs point, you should enquire about the procedures to be followed in that country.

What happens to my Kimberley Process Certificate if it has expired?

After expiry, a Canadian Kimberley Process Certificate must be returned to Natural Resources Canada. The applicant may apply for a new Canadian Certificate.

What do I do if I submitted an inaccurate Kimberley Process Certificate Application Form?

Please contact the Kimberley Process Office.

If a Canadian Certificate has already been issued, it must be returned to NRCan or to a designated inspector before a replacement Canadian Certificate can be issued.

How do I obtain a Kimberley Certificate from another participant?

A participant in the Kimberley Process (see Kimberley Process Participants) can issue a Kimberley Process Certificate (KPC). To obtain a KPC, you must apply to the Export Authority of the participant; a list of these authorities will be provided on the international Kimberley Process web site.

What do I do when I import rough diamonds from another participant?

Only rough diamonds from countries participating in the Kimberley Process will be allowed into Canada. As a result, diamonds must arrive at Canada Customs accompanied by a Kimberley Process Certificate issued by a participant country.

This certificate verifies that the rough diamonds for import have been handled in a manner that meets the minimum requirements of the Kimberley Process.

(Note: Certificates from other participants will not look exactly the same as those provided by the Government of Canada.)

Step 1: Understand the Regulations Associated With Importing Rough Diamonds into Canada

It is a good idea to visit the Canadian Kimberley Process web site so you fully understand Canada's domestic regulations and the roles of participating countries around the world.

Step 2: Arrange for Your Import Shipment

Rough diamond imports entering Canada must be accompanied by a Kimberley Process Certificate validated by a foreign government that is also participating in the Kimberley Process regime. Diamonds from non-participants will not be allowed to enter the country.

Importers must present the Kimberley Process Certificate from a participating country to a Canadian Customs Officer at the point of entry. The customs official will stamp the certificate and the importer must send the original certificate by courier or mail to the Kimberley Process Office at NRCan within seven days. Imported rough diamonds will be subject to all other normal customs procedures.

(Note: Shipments that have not been packed according to international agreements (i.e., appear to have been opened, or improperly packaged) may be detained or seized. Information about the packaging and sealing of rough diamond shipments is available on the Kimberley Process Office web site and is set out in the regulations.)

Step 3: Maintain Records On Imported Rough Diamonds

It is important to maintain records related to imported diamonds for three years. Should you wish to re-export all, or some, of the rough diamonds at a later date, you will require a Canadian Kimberley Process Certificate. In this instance, information required to obtain a Canadian Certificate will include the Kimberley Process Certificate serial number that accompanied the diamonds on import.

What do I do when I ship diamonds across Canada to another participant (in transit)?

Rough diamonds being shipped through Canada en route to another participant are a special case. In this instance, the Kimberley Process Certificate from the original exporting country remains with the rough diamond shipment while it is in Canada. A Canadian certificate is not required when these diamonds leave Canada.

Do I have to import or export diamonds at designated points?

No. Although the Import and Export of Rough Diamonds Act provides for the designation of points of entry and exit, it is as yet unclear whether such a measure will be necessary.

What is the difference between the Harmonized System (HS) and Standard Industrial Classification (SIC) or North American Industrial Classification System (NAICS) codes?

The HS classification number is a 10-digit number under which imports are classified in the HS-based Customs Tariff.

The ninth and tenth digits are used as the "statistical suffix." In Canada, these digits provide product descriptions for statistical purposes to Statistics Canada. Although the 10-digit classification number is in the departmental consolidation of the HS-based Customs Tariff, only classification to the eighth digit level makes up the legal core for classification and duty rates.

Classification to the sixth digit is the international subdivision of the heading text for statistical purposes.

NAICS is principally a classification system for establishments and for the compilation of production statistics. In 1997, the NAICS coding system replaced the previous 1980 SIC system.

What are rough diamonds?

Rough diamonds are crystals or fragments of crystals that have not been polished, the processing of which enhances the beauty of diamonds for use in jewellery.

Is the Kimberley Process the voluntary code of conduct for diamonds?

No. The voluntary code of conduct was designed by the Canadian industry to ensure that diamonds promoted as Canadian are indeed mined in Canada.

Does the Kimberley Process involve the appraisal of jewellery?

The process is not an appraisal system. It is implemented to deal with the export and import of rough diamonds only.