On June 19, 2018, the Office of Foreign Assets Control (OFAC) published in the Federal Register a final rule amending the Rough Diamonds Control Regulations (31 C.F.R. part 592) to clarify several reporting requirements and remove another, clarify which entity may issue Kimberley Process Certificates for the export of rough diamonds from the United States, clarify the steps necessary to validate a Kimberley Process Certificate, add two definitions that define rough diamond packaging requirements and Kimberley Process voided certificates, and make certain technical and conforming changes to the penalties section of the regulations.
In coordination with a regulatory amendment by the Census Bureau, OFAC is amending § 592.301 to incorporate existing Census Bureau requirements for submission of Kimberley Process Certificates in connection with the importation and exportation of rough diamonds. The Census Bureau is amending the Foreign Trade Regulations (FTR), 15 C.F.R. part 30, to clarify that the data it collects from Kimberley Process Certificates is collected in compliance with the Clean Diamond Trade Act (Pub. L. 108-19) (CDTA) and not Title 13, United States Code (U.S.C.), and to clarify submission requirements for and permissible uses of the Kimberley Process Certificates.
OFAC is incorporating the existing requirements pursuant to the FTR that importers or customs brokers provide a copy of the Kimberley Process Certificate accompanying a shipment of rough diamonds to the Census Bureau immediately after entry of the rough diamonds in the United States and that, with respect to rough diamond exports, the U.S. Principal Party in Interest or U.S. authorized agent must provide a copy of the Kimberley Process Certificate to the Census Bureau immediately after export from the United States.
At the same time, in consultation with the Department of State, the Census Bureau, and CBP, OFAC is removing the requirement that all rough diamond importers and exporters file annual reports with the Department of State detailing their import, export, and stockpile information as previously set forth in § 592.502. OFAC has removed this requirement as unnecessary in light of alternate sources from which to obtain relevant information. At this time, as reflected in a Memorandum of Understanding (MOU) among the Department of State, the Census Bureau, and U.S. Kimberley Process Authority (USKPA), a non-profit association, Kimberley Process Certificates for the exportation of rough diamonds from the United States may only be issued by the USKPA or by entities licensed to do so by the USKPA. The rule went into effect upon publication.