Order Amending the Schedule to the Export and Import of Rough Diamonds Act: SOR/2019-24
Canada Gazette, Part II, Volume 153, Number 3
SOR/2019-24 January 28, 2019
EXPORT AND IMPORT OF ROUGH DIAMONDS ACT
The Minister of Natural Resources, pursuant to section 3 of the Export and Import of Rough Diamonds Act footnote a, makes the annexed Order Amending the Schedule to the Export and Import of Rough Diamonds Act.
Ottawa, January 23, 2019
Minister of Natural Resources
Order Amending the Schedule to the Export and Import of Rough Diamonds Act
1 The schedule to the Export and Import of Rough Diamonds Act footnote 1 is amended by adding the following in alphabetical order:
Coming into Force
2 This Order comes into force on the day on which it is registered.
REGULATORY IMPACT ANALYSIS STATEMENT
(This statement is not part of the Order.)
The Kimberley Process (KP) is an international agreement between diamond-producing and -trading countries (participants), representatives of civil society and industry that was negotiated to prevent conflict diamonds from entering into legitimate diamond trade. Conflict diamonds are those diamonds sold by rebel forces to purchase arms for use in conflict against legitimate governments. The KP came into force on January 1, 2003.
Under the Kimberley Process Certification Scheme (KPCS), all exports of rough diamonds must be accompanied by a certificate (issued by a participating government or an agency authorized by that government) confirming that shipments of rough diamonds are free from conflict diamonds. Trade in rough diamonds can only occur between participants. In order to be a participant, governments are required to have appropriate legislation in place that allows for adequate enforcement of the terms and conditions of the Scheme.
In order for Canada to meet its obligations as a participant in the KPCS, new legislation and regulations needed to be put in place. On December 12, 2002, the Export and Import of Rough Diamonds Act (EIRDA) was passed into law and permitted Canada to begin implementation of the certification scheme on January 1, 2003.
Pursuant to section 3 of the EIRDA, the Order is designed to amend the schedule to the Act, which is required to bring it into agreement with the KP list of participants
Since January 1, 2003, the EIRDA, which provides the Minister of Natural Resources the authority necessary to fulfill Canada’s commitments under the KPCS, is in force in Canada. Participation to the KPCS is essential in order for Canadian producers and users of rough diamonds to export and import those goods internationally and remain competitive.
Since the last amendment to the schedule on May 31, 2017, the list of participants to the KPCS has changed and now includes 56 participants representing 83 countries, including the European Union with its 28 member countries. As a result of a consensus reached on exports of rough diamonds from Gabon during the KP plenary in November 2018, the latter country has been admitted to the KPCS and must therefore be added to the schedule.
Amending the schedule to the EIRDA is an administrative requirement that does not represent changes in policy or in regulations, which elicit or require comment. Upon approval by the Minister of Natural Resources, the amendment may be submitted and published in Part II of the Canada Gazette without prior submission for comment in Part I of the Canada Gazette.
A change to the schedule of the EIRDA is required for Canada to remain in compliance with the minimum requirements of the Scheme. To be in breach would negatively impact the profitability and the level of employment in Canada’s diamond mining industry and the economy in general.
Implementation, enforcement and service standards
Failure to comply with the EIRDA, or its related regulations or other requirements, may lead to prosecution. The Canada Border Services Agency and the Royal Canadian Mounted Police are responsible for the enforcement of the EIRDA.
Louis Perron, Eng.
Kimberley Process Office Coordinator
Tax Administration and Kimberley Process Program Division
Lands and Minerals Sector
Natural Resources Canada
580 Booth Street 10th Floor