CBP Issues Two Notices on New Requirements for Rough Diamonds
U.S. Customs and Border Protection has issued an ABI CSMS message and posted a Web site notice on new requirements for rough diamonds subject to the Kimberly Process Certification Scheme.
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Informal Entries to No Longer be Allowed; New Reporting Requirements, Etc.
CBP states in its CSMS message that the Office of Foreign Assets Control will soon be publishing new amendments to the Rough Diamonds Control Regulations (31 CFR Part 592), to add requirements designed to enhance the collection of statistics related to importations and exportations of rough diamonds.
(According to government sources, these amendments will (1) no longer allow rough diamonds to be cleared using the informal entry process, and (2) add additional reporting requirements, among other things.
These sources add that faxing the Kimberley Process Certificate to the Census Bureau will still be required. In addition, it is not known if there will be changes to disallow the use of registered mail entries for industrial diamonds.)
Instructions for Filers When CBP Demands Certificate
CBP's Web posting includes instructions that filers must follow when CBP demands to review the original Kimberly Process Certificate for an import or export shipment.
When a CBP officer demands the original Kimberley Process Certificate, importers are required to produce the document and provide a copy of the certificate for inclusion in the entry package. A CBP officer must authenticate the original Kimberley Process Certificate when provided and also verify the contents of the shipment against the invoice and/or packing list.
Standard Mailing & Express Packaging Alone Not Considered Tamper-Resistant
CBP states that OFAC regulations (31 C.F.R. 592.301 (a)(2)) currently require shipments of rough diamonds imported into, or exported from, the U.S. to be sealed in a tamper-resistant container.
A "tamper-resistant container" is defined as packaging having an indicator or barrier to entry that could reasonably be expected to provide visible evidence that tampering had occurred.
Standard mailing and express consignment packaging alone is not considered as tamper-resistant.
CBP states that CBP officers must adhere to this policy to ensure uniformity in enforcing OFAC requirements pertaining to security of rough diamond shipments.
(In 2004, CBP stated that the HTS numbers that require a Kimberley Process Certificate number are: 7102.10.0000, 7102.21.1010, 7102.21.1020, 7102.21.3000, 7102.21.4000, and 7102.31.0000. See ITT's Online Archives or 10/21/04 news, 04102110 for BP summary.)
(See ITT's Online Archives or 10/24/07 news, 07102415, for BP summary of CBP notice on faxing certificate to Census.
See ITT's Online Archives or 08/06/03 and 09/28/04 news, 03080610 and 04092820, for BP summaries of OFAC interim final rule on rough diamonds and final rule, respectively.
See ITT's Online Archives or 11/07/06 news, 06110720, for BP summary of GAO report which sources cite as the motivating force behind these new requirements.)
CSMS 08-000080 (dated 05/12/08) available at http://apps.cbp.gov/csms/viewmssg.asp?Recid=17088&page=&srch_argv=08-000080&srchtype=&btype=&sortby=&sby
CBP Web Posting (dated 05/12/08) available at http://www.cbp.gov/xp/cgov/trade/trade_programs/diamonds/updated_req.xml