CHAPTER IV

INDUSTRY SELF-REGULATION
Article 17
1
Organisations representing traders in rough diamonds which have established a system of warranties and industry self-regulation for the purposes of implementing the KP Certification Scheme may apply to the Secretary of State for listing in the list of self-regulating organisations published by the Secretary of State for the purposes of this Article.
2
When applying for listing, an organisation shall:
a
provide conclusive evidence that adopted rules and regulations whereby its members dealing in rough diamonds, whether natural or legal persons, undertake that they will ...:
1. sell only diamonds purchased from legitimate sources in compliance with the provisions of relevant United Nations Security Council Resolutions and of the Kimberley Process Certification Scheme and guarantee in writing on the invoice accompanying each sale of rough diamonds that, on the basis of their personal knowledge and/or written warranties provided by the supplier of such rough diamonds, the rough diamonds sold are therefore not conflict diamonds;
2. see that each sale of rough diamonds is accompanied by an invoice containing the said signed guarantee unequivocally identifying the seller and buyer and their registered offices, containing the VAT identification number of the seller, where applicable, the quantity/weight and qualification of the goods sold, the value of the transaction and the date of delivery;
3. not buy rough diamonds from suspect or unknown sources of supply and/or rough diamonds originating in non-participants in the KP certification scheme;
4. not buy rough diamonds from any source found, after legally binding due process, to have violated government laws and regulations concerning the trade in conflict diamonds;
5. not buy rough diamonds in, or from, any region that is the subject of an advisory notice from a governmental or KP certification scheme authority to the effect that conflict diamonds are emanating from, or are available for sale in, that region;
6. not knowingly buy, sell or assist others in buying or selling conflict diamonds;
7. ensure that all employees buying or selling rough diamonds within the diamond trade are fully informed of trade resolutions and government regulations restricting the trade in conflict diamonds;
8. create and maintain for at least three years records of invoices received from suppliers and issued to customers;
9. instruct an independent auditor to certify that these records have been created and maintained accurately and either that it has identified no transactions which failed to comply with the undertakings referred to in (i) to (viii) or that any transaction which failed to comply with such undertakings has been duly reported to the United Kingdom competent authority , or, if prior to IP completion day, a competent authority;
and
b
provide conclusive evidence that is has adopted rules and regulations which oblige the organisation:
1. to expel any member found, after a due process inquiry by the organisation itself, to have seriously violated the abovementioned undertakings; and
2. to publicise that member's expulsion and notify the United Kingdom competent authority thereof;
3. to make known to all its members all governmental and KP certification scheme laws, regulations and guidelines regarding conflict diamonds and the names of any natural or legal person found guilty, after legally binding due process, of violating these laws and regulations;
and
c
provide ... the United Kingdom competent authority with a complete list of all its members dealing in rough diamonds, including full names, addresses, location and other information which will contribute to avoiding mistaken identities.
3
Organisations covered by this Article shall immediately notify ... the United Kingdom competent authority ... of all changes in their membership subsequent to the application for listing.
4
The Secretary of State must publish a list containing each organisation that fulfils the requirements of this Article.
5
a
A listed organisation or a member thereof shall provide the United Kingdom competent authority with access to any information that may be needed to assess the proper functioning of the system of warranties and industry self-regulation. Where circumstances justify, the United Kingdom competent authority may require additional guarantees that an organisation is able to maintain a credible system.
b. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6
If, in the course of monitoring the proper functioning of the system, the United Kingdom competent authority ... obtains credible information that a listed organisation covered by this Article ..., or a member thereof ..., is infringing the provisions of this Article, it shall inquire into the matter to verify whether the provisions of this Article have effectively been infringed.
7. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8
If an inquiry leads to the conclusion that an organisation is infringing the provisions of this Article, the United Kingdom competent authority ... shall take the appropriate measures with a view to removing that organisation from the list of self-regulating organisations published by the Secretary of State for the purposes of this Article.
9. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
10
Organisations or their members covered by this Article acting in the territory of a participant other than the United Kingdom shall be considered to have complied with the provisions of this Article if they comply with the rules and regulations that this participant has laid down for the purpose of implementing the Kimberley Process Certification Scheme.
Words in Art. 17(1) substituted (31.12.2020) by The Kimberley Process Certification Scheme (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/844), regs. 1, 20(2)(a); 2020 c. 1, Sch. 5 para. 1(1)
Words in Art. 17(1) substituted (31.12.2020) by The Kimberley Process Certification Scheme (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/844), regs. 1, 20(2)(b); 2020 c. 1, Sch. 5 para. 1(1)
Words in Art. 17(2)(a) omitted (31.12.2020) by virtue of The Kimberley Process Certification Scheme (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/844), regs. 1, 20(3)(a); 2020 c. 1, Sch. 5 para. 1(1)
Words in Art. 17(2)(a)(ix) inserted (31.12.2020) by The Kimberley Process Certification Scheme (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/844), regs. 1, 20(3)(b) (as amended by S.I. 2020/1473, regs. 1, 4); 2020 c. 1, Sch. 5 para. 1(1)
Words in Art. 17(2)(b)(ii) substituted (31.12.2020) by The Kimberley Process Certification Scheme (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/844), regs. 1, 20(3)(c); 2020 c. 1, Sch. 5 para. 1(1)
Words in Art. 17(2)(c) omitted (31.12.2020) by virtue of The Kimberley Process Certification Scheme (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/844), regs. 1, 20(3)(d); 2020 c. 1, Sch. 5 para. 1(1)
Words in Art. 17(3) omitted (31.12.2020) by virtue of The Kimberley Process Certification Scheme (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/844), regs. 1, 20(4)(a); 2020 c. 1, Sch. 5 para. 1(1)
Words in Art. 17(3) omitted (31.12.2020) by virtue of The Kimberley Process Certification Scheme (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/844), regs. 1, 20(4)(b); 2020 c. 1, Sch. 5 para. 1(1)
Art. 17(4) substituted (31.12.2020) by The Kimberley Process Certification Scheme (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/844), regs. 1, 20(5); 2020 c. 1, Sch. 5 para. 1(1)
Art. 17(5)(b) omitted (31.12.2020) by virtue of The Kimberley Process Certification Scheme (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/844), regs. 1, 20(6); 2020 c. 1, Sch. 5 para. 1(1)
Words in Art. 17(6) omitted (31.12.2020) by virtue of The Kimberley Process Certification Scheme (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/844), regs. 1, 20(7)(a); 2020 c. 1, Sch. 5 para. 1(1)
Words in Art. 17(6) omitted (31.12.2020) by virtue of The Kimberley Process Certification Scheme (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/844), regs. 1, 20(7)(b); 2020 c. 1, Sch. 5 para. 1(1)
Words in Art. 17(6) omitted (31.12.2020) by virtue of The Kimberley Process Certification Scheme (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/844), regs. 1, 20(7)(c); 2020 c. 1, Sch. 5 para. 1(1)
Art. 17(7) omitted (31.12.2020) by virtue of The Kimberley Process Certification Scheme (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/844), regs. 1, 20(8); 2020 c. 1, Sch. 5 para. 1(1)
Words in Art. 17(8) omitted (31.12.2020) by virtue of The Kimberley Process Certification Scheme (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/844), regs. 1, 20(9)(a); 2020 c. 1, Sch. 5 para. 1(1)
Words in Art. 17(8) substituted (31.12.2020) by The Kimberley Process Certification Scheme (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/844), regs. 1, 20(9)(b); 2020 c. 1, Sch. 5 para. 1(1)
Art. 17(9) omitted (31.12.2020) by virtue of The Kimberley Process Certification Scheme (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/844), regs. 1, 20(10); 2020 c. 1, Sch. 5 para. 1(1)
Words in Art. 17(10) substituted (31.12.2020) by The Kimberley Process Certification Scheme (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/844), regs. 1, 20(11); 2020 c. 1, Sch. 5 para. 1(1)
Words in Regulation substituted (31.12.2020) by The Kimberley Process Certification Scheme (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/844), regs. 1, 3(2)(a); 2020 c. 1, Sch. 5 para. 1(1)