Frequently Asked Questions

The KPCS is a United Nations-sanctioned mechanism for eliminating the flow of conflict diamonds, which came into force by international agreement on January 1, 2003. It covers the trade in rough diamonds between countries and is enforced by government-approved KP Authorities at official points of exit and entry in any KP Participant country or region (in the case of the European Union).

Within the framework of the KPCS, rough diamonds can only be traded between parties in Kimberley Process (KP) Participant countries. International shipments of rough diamonds must be accompanied by a valid and validated KP certificate, which has been issued by an authorized KP Authority in the country or region from which they are being exported, ensuring that they are conflict-free. The first KP certificate issued for a rough diamond is in the country that it was mined, it is incumbent on the KP Authority in that country to ascertain that it was not associated with conflict.

The Core Document of the KP defines conflict diamonds as rough diamonds used by rebel movements to finance wars against legitimate governments.

** The World Diamond Council, in collaboration with the KP Civil Society Coalition and a number of KP Participant governments, has been working within the KP to expand the scope of the “conflict diamond” definition in the Core Document, so that it will include other acts of systemic violence and human rights violations that are related directly to the rough diamond business. To date, these efforts have not been successful, although progress toward reaching consensus has been made. The issue remains on the KP’s agenda.

The Kimberley Process (KP) is the inclusive tripartite international forum established by governments, diamond industry and civil society in 2000, with the endorsement of the United Nations General Assembly and Security Council, to address the challenge of conflict diamonds. There are today 56 Government Participants in the KP, representing 82 countries. The European Union and its 27 member states counting as a single Participant, is represented by the European Commission.

The Kimberley Process Certification Scheme (KP) is the mechanism that was developed by the KP to eliminate the flow of conflict diamonds into the distribution chain. Within its framework, rough diamonds can only be traded between parties in KP Participant countries, and international shipments of rough diamonds must be accompanied by a KP certificate. Those are issued by an authorized KP Authority in the country or region from which they are being exported, ensuring that they are conflict-free.

While the KP created and oversees KPCS, it is implemented by the governments of the KP Participant countries, in accordance with statutes and regulation that they have legislated for their jurisdictions.

A KP certificate is a document issued for a parcel of rough diamonds at a point of export, by an authorized KP Authority in a KP Participant country, to verify that they are conflict free. The certificate substantiates that the diamonds in question were either mined or recovered at a site in the certifying country that meets minimum the KP Minimum Requirements, or were part of a parcel of rough diamonds that entered the certifying country or region (in the case of the EU) accompanied by bona fide KP certificate.

When rough diamonds arrive at a point of import, the KP Authority in the importing country examines the parcel and the KP certificate before allowing them entry.

Because the KPCS is operated at the national level, according to laws and regulations that are legislated and enforced in each country, the procedures used by different KP Authorities may differ from place to place. It is advised that the exporter contact the KP Focal Point for the country or region from which the rough diamond export is being made.

An up-to-date list of KP Focal Points is available on the WDC website at: https://www.worlddiamondcouncil.org/kp-focal-points/

Not necessarily.

When a diamond-producing country is concerned, the KP Authority is charged with verifying the rough diamonds were sourced at a site within its jurisdiction that meets the KP Minimum Requirements. In such cases the certificates can be considered proof of origin.

However, when a rough trading country is not also a rough diamond producer, the KP Authority still is required to issue KP certificates for rough diamond exports, verifying that the rough diamonds being exported earlier entered country as part of a parcel with a KP certificate. In such cases the KP certificate is not a proof of origin.

Rough diamonds may only be exported or imported from parties in KP Participant countries, and must be accompanied by an original KP Certificate, issued in the country of export.

Imports of rough diamonds must be formally declared when entering a country, including any rough diamonds “hand carried” by passengers. Import shipments of rough diamonds must be sealed in a tamper-resistant container. Standard mailing and express consignment packaging, or such packaging that simply contains a resealable plastic bag, are not considered to be a tamper resistant.

Importers must notify the relevant foreign exporting authority of the receipt of the rough diamond shipment. Importers of rough diamonds must retain a copy of the KP Certificate accompanying the shipment for a period of at least three years from the date of importation. This requirement may be longer in certain countries. Because the legal requirement may differ from country to country, members of trade are encouraged to consult with their own KP Focal Points (https://www.worlddiamondcouncil.org/kp-focal-points/).

KP certificates are issued only for rough diamonds and checked at points of export and import. But members of the industry are also obliged to comply with the WDC System of Warranties (SoW), according to which all professional buyers and sellers of rough diamonds, polished diamonds and jewelry set with diamonds include a warranty statement on B2B invoices and memos each time a diamond changes hands, assuring the next buyer that it originated from conflict-free sources in compliance with the KPCS. The SoW is applied each time ownership of diamonds change hands, when they are exported or imported, and when they are sold without leaving country.

The most recently revised version of the SoW Declaration also confirms that the diamonds were handled in accordance with responsible business practices, including those relating to human and labor rights, anti-money laundering and anti-corruption.

According to the KP Core Document, KP certificates should be kept readily accessible for period of no less than three years. Some countries require that they be held for a longer period of time.

The requirements to maintain copies of invoices are subject to the laws of each country, but, according to the KP Core Document, all rough diamond buyers, sellers and exporters are encouraged to be required by law to keep for a period of five years daily buying, selling or exporting records, listing the names of buying or selling clients, their license number and the amount and value of diamonds sold, exported or purchased.

A fake KP certificate is a forged document accompanying a real rough diamond export, which deliberately misstates that the diamonds in question are KP compliant. The purpose of this document is to whitewash non-KP compliant rough diamonds.

A fraudulent or false certificate is document that has been created with the purpose of defrauding a buyer by appearing to have been issued for a shipment of rough diamonds. It is often is transferred digitally and no actual physical copy exists. Very often, no actual diamonds exist.

KP Offices are the facilities managed by the KP Authorities in any KP Participant countries or region (in the case of the EU), which in the case of an exporting country is authorized by the relevant government to issue KP certificates, and in the case of importing countries to verify KP certificates.

An up-to-date list of KP Focal Points is available on the WDC website at: https://www.worlddiamondcouncil.org/kp-focal-points/

There are today 56 Government Participants in the KP, representing 82 countries. The European Union and its 27 member states counting as a single Participant, is represented by the European Commission.

There are today 56 Government Participants in the KP, representing 82 countries, with the European Union and its member states counting as a single Participant, represented by the European Commission.

Before the launch of the KPCS and WDC, the incidence of conflict diamonds in the distribution chain was estimated to be in excess of 4 percent. Within just five years of its rollout, the number of conflict diamonds in the legitimate trade had fallen to less than two-tenths of 1 percent.

Today, the only UN-recognized source of conflict diamonds is the Central African Republic (CAR), which is a minor producer that has been involved in a civil war since the end of 2012. In 2013, the KP embargoed all exports of rough diamonds from the nation, after rebels seized control of producing areas. In July 2015, KP agreed that the CAR could resume exports, as long they originated from “green zones,” which are under government control and are compliant with KP rules. A special KP committee monitors all approved rough diamond exports from the CAR.

The World Diamond Council (WDC) is not-for-profit trade association, registered in New York, USA, whose mission is to protect the integrity of the diamond distribution chain, and specifically support efforts that eliminate the trade in “conflict diamonds.” Its membership includes businesses and organizations from around the globe, engaged in all sectors of the diamond industry and trade, from rough diamond producers through to retail jewelers.

The WDC is the diamond and jewelry industry’s official representative in the tripartite international forum of the Kimberley Process (KP). In this respect, WDC’s primary objective is to represent the industry in the development and implementation of regulatory and voluntary systems to control the trade in diamonds embargoed by the United Nations or covered by the Kimberley Process Certification Scheme (KPCS).

Additionally, using the resources of the diamond industry, WDC supports the Kimberley Process though technical, financial and other means, including the Administrative Support Mechanism (AMS), which provides ongoing logistic and managerial assistance to the KP Chair and officers.

To help ensure that the polished diamonds being sold originate from rough diamonds that were responsibly sourced, the WDC created the System of Warranties (SoW) to complement the KPCS. In essence, the SoW requires buyers and sellers of rough diamonds, polished diamonds and jewelry set with diamonds to include a warranty statement on B2B invoices and memos each time a diamond change hands, assuring the next buyer that it originated from sources in compliance with the KPCS and essential responsible business practices, including those relating to human and labor rights, anti-money laundering and anti-corruption.

The WDC is the diamond and jewelry industry’s official representative in the tripartite international forum of the Kimberley Process (KP), together with Government participants and civil society.

Like the KP Civil Society Coalition, the WDC has Observer status. Observers do not have voting rights, which is a privilege extended only to Government Participants. Nonetheless, the WDC participates in all KP’s working groups and committees, and it participates in review visits to KPmember countries. The WDC chairs the KP’s Working Group of Diamond Experts (WGDE), which is charged with providing solutions to technical challenges and problems in the implementation of the KPCS.

Additionally, using the resources of the diamond industry, WDC supports the Kimberley Process though technical, financial and other means. This includes the Administrative Support Mechanism (AMS) that since 2013 has provided ongoing logistic and managerial assistance to the KP Chair, working groups and committees, which is operated and financed by the WDC.

The KP is currently planning to replace the AMS with a Permanent Secretariat. A WDC official currently chairs the KP sub-committee overseeing the establishment of the Permanent Secretariat, and it also has pledged funding to support its activities once it has been created.

The WDC was among the primary architects of the KPCS, which was developed from a working paper prepared by WDC group of experts in 2000.

All companies and organizations that are active in the diamond supply chain are eligible for WDC membership, on condition that they fulfill the following requirements:

1. Commitment to responsible sourcing, Kimberley Process compliance and the SoW Guidelines, version 2021.
2. Can demonstrate that they have been established as a “going concern” for at least two years preceding their application for WDC membership.
3. Obtain a referral from an industry member or companies supplying goods and/or services to the jewelry industry
4. Are willing to sign and commit to the WDC Membership Core Values Pledge
5. Are willing to assign at least one person from their company or organization as a Kimberley Process liaison.

Not a requirement, but most definitely a preference is that the applicant hold membership with at least one other recognized industry trade organization.

Visit the WDC website at https://www.worlddiamondcouncil.org.

Visit the WDC Member page on the WDC website at https://www.worlddiamondcouncil.org/members/.

Email the WDC Executive Director at ed@worlddiamondcouncil.org.

The new System of Warranties (SoW), which complements the KPCS, requires buyers and sellers of rough diamonds, polished diamonds and jewelry set with diamonds to include a warranty statement on B2B invoices and memos each time a diamond change hands, assuring the next buyer that it originated from sources in compliance with the KPCS and responsible business practices. These include essential human and labor rights, anti-money laundering and anti-corruption.

Like the original version, the new SoW requires that all buyers and sellers of rough diamonds, polished diamonds and jewelry containing diamonds include a statement on B2B invoice and memos declaring that the goods being sold are in compliance with the KPCS. However, the updated statement also includes a commitment that the buyers and sellers adhere to the WDC SoW Guidelines. These were adopted by WDC in 2018 and updated in 2020.

Specifically, the WDC SoW Guidelines reference the UN Guiding Principles on Business and Human Rights, the ILO Declaration on Fundamental Principles and Rights at Work, the UN Convention Against Corruption, and national AML guidelines that comply with the FATF’s 40 Recommendations on Money Laundering for Dealers in Precious Metals and Stones.

In order to be able to include the updated warranty statement on an invoice or memo note, users of the new SoW must conduct specific due diligence, which includes registering on a dedicated SoW website and then conducting a self-assessment to ascertain whether they meet minimum SoW standard. The self-assessment needs to done on an annual basis.

The self-assessment is customized and takes into consideration the stage or stages of the diamond and jewelry value chain in which the industry member is involved, the size of the company, and whether it is already compliant with other recognized due diligence systems.

The KPCS covers the export of rough diamonds from country to country, ensuring that they have met the minimum standards of the KP and this can be considered conflict-free. The SoW covers rough diamonds, loose polished diamonds and jewelry set with diamonds, and is applied each time a diamond changes hands, even if the two parties to a transaction are located in the same country. The new SoW requires that, in addition to meeting KP’s Minimum Requirements, the diamonds were also handled in accordance with essential responsible business practices, including those relating to human and labor rights, anti-money laundering and anti-corruption.

Thus, the SoW extends the effectiveness of the KPCS along the full length of the supply chain, while also defending it from other challenges to its integrity.

“The diamonds herein invoiced have been purchased [or “sourced”*] from legitimate sources not involved in funding conflict, in compliance with United Nations Resolutions and corresponding national laws [where the invoice is generated**]. The seller hereby guarantees that these diamonds are conflict free and confirms adherence to the WDC SoW Guidelines.”

* “sourced” may be used by companies that do not purchase from open market, but source and aggregate diamonds from production facilities that are owned/partly owned by them.

** “where the invoice is generated” may be used by companies if they specifically want to reference the country of invoice issuance.

A warranty is a written promise made about a product by the seller of that product.

In the case of the SoW warranty, the seller promises that the diamond or diamonds being sold are not associated with conflict, as defined by the KP Core Document, and are in compliance with the other terms described in the WDC SoW Guidelines. The seller can provide the warranty only if he or she is in possession of a diamond’s KP certificate and/or has purchased the diamond from a seller that provided the same SoW warranty.

A business standard involves a set of measurable benchmarks, which can be audited. In this respect, in and of itself, the SoW is not a business standard. However, in the diamond business, implementation of the SoW is standard operating procedure. As such is a requirement of leading industry business standards, such as the Code of Practices of the Responsible Jewellery Council.

The SoW is a chain of warranties, whereby the seller issuing the warranty statement relies upon the integrity of warranty statement that preceded it, which was issued by the party from which he or she purchased the diamonds. Any change to the wording of one of those warranty statements may dilute the veracity of the commitment being made sellers, as the diamonds move further down the chain of distribution.

Buyers and sellers of rough diamonds, polished diamonds and jewelry containing diamonds must pass on a warranty statement each time diamonds change hands, assuring the next buyer that the diamonds originated from sources in compliance with the KPCS.

Additionally, each company trading in rough and polished diamonds is required to keep for a period of at least five years records of the warranty invoices received and the warranty invoices issued when buying or selling diamonds, reconciling them on an annual basis, as part of KPCS compliance.

The KP Core Document expressly refers to a “system of industry self-regulation that provides for a system of warranties, underpinned through verification by independent auditors of individual companies and supported by internal penalties set by industry, which will help to facilitate the full traceability of rough diamond transactions by government authorities.”

The KP Core Document refers to the SoW as self-regulatory system, but within the trade, compliance with the SoW requirements is effectively a condition of doing business.

It is a requirement for members of diamond exchanges that are affiliated to the World Federation Diamond Bourses (WFDB) and members of organizations belonging to the International Diamond Manufacturers Association (IDMA). It is also a condition of compliance with the Code of Practices of the Responsible Jewellery Council (RJC) and the Responsible Sourcing Blue Book of CIBJO, the World Jewellery Confederation. There are also legal jurisdictions where proof of SoW compliance is required as part of an annual company audit, such as Belgium.

Another factor rendering the SoW as essentially obligatory in the industry is that it is required practice for clients of major rough diamond producers, among them De Beers, which cites them in its Best Practice Principles, and ALROSA, where they are referenced in the ALROSA ALLIANCE™ Guidelines on Responsible Business Practices. The same is true for suppliers of the world’s largest jewelry retailers, including Signet Jewelers, which cites the SoW in its Responsible Sourcing Protocol for Diamonds; Chow Tai Fook Jewellery, which references them in Code of Practice for Supplier Assessment; and Tiffany & Co., where compliance with the SoW are referenced in its Supplier Code of Conduct.

Implementation of the new SoW requires first completing an online self-assessment, to ascertain the company meets the minimum requirements of the SoW. Companies that are already compliant with certain industry self-regulation systems will automatically be recognized by the online tool as meeting those minimum requirements.

These self-regulation systems include the Responsible Jewellery Council (RJC) Code of Practices, and De Beers’ Best Business Practices (BPP) Assurance Program.

To comply with the SoW, participants in the diamond supply chain are required to undergo the online self-assessment once every 12 months. They are required to register once, and can access their own data consequently, using a secure password.

The self-assessment is customized and takes into consideration the stage or stages of the diamond and jewelry value chain in which the industry member is involved, the size of the PAGE 10 OF 10 company, and whether it is already compliant with other recognized due diligence systems, like that of the Responsible Jewellery Council. Consequently, not all companies are required to answer the same questions.

The information that WDC retains is only data required to enable registration, and to provide the filters for the customization of the questionnaire.

No, all the data provided is considered proprietary.

Because the self-assessment questionnaire is customized and takes into consideration the stage or stages of the diamond and jewelry value chain in which the industry member is involved, the size of the company, and whether it is already compliant with other recognized due diligence systems, not all industry members will be required to answer the same questions.

For questions that the industry member is not required to answer, N/A appears in the response box.

Email: sow.helpdesk@worlddiamondcouncil.org

After you successfully complete the online self-assessment, the system will generate a PDF with your responses. It is recommended that you print it and/or store it on your own system. This copy may be shared with business partners to show that you are in compliance with the WDC System of Warranties.

The Explanatory Notes are a set of explanations, clarifying each of the questions in the self-assessment questionnaire, informing the respondent as to what is understood by answering “yes” to a specific question. A link to each Explanatory Note is provided alongside each question, but the respondent can read and print out the full set of Explanatory Notes by downloading a PDF from the Resources section of the WDC SoW website.