|
Implementation of Kimberley Process Certification Scheme (KPCS) on
Conflict Diamonds
IECD
No. 13 - 04.02.02 - dated 3rd February 2003
Please
refer to our circular IECD No. 3/ 04.02.02/ 2001-02 dated August 30, 2001
regarding obtaining undertaking from all your clients who are being extended
credit for doing any business relating to diamonds.
2. We advise that as per new UN mandated
Kimberley Process Certification Scheme (KPCS) which has been adopted, among
others, by India, it has to be ensured that no rough diamonds mined and
illegally traded enter our country. Various measures have been taken in this
regard including a system of import into India of diamonds being mandatorily
accompanied by Kimberley Process Certificate (KPC). Similarly, the exports from
India would also be accompanied by the KPC to the effect that no conflict/rough
diamonds have been used in the process. These KPCs would be verified/ validated
in the case of imports/ exports by the Gem and Jewellery Export Promotion
Council, which has been designated, under the KPCS, as Importing-Exporting
Authority by the Government of India.
3. It has therefore been decided that
banks should obtain a modified undertaking as per format enclosed, from all the
clients who are being extended credit for doing any business relating to
diamonds to ensure that the client complies with the KPCS guidelines.
4. The format of Undertaking given as
Annexure in the Master Circular on Customer Service, Simplification of
Procedures for Delivery of Export Credit and Reporting Requirements may be
amended accordingly.
5. The existing system of prompt reporting
to RBI of any violation of UN Resolutions as and when noticed as laid down in
above circular would continue.
Please
acknowledge receipt.
Annexure
to Circular IECD No.13 - 04.02.02 - dated February 3, 2003
Undertaking from Diamond
Clients
Form
of an undertaking to be obtained by banks from the clients who have been
extended credit for doing any business relating to diamonds
"I
hereby undertake:
i) not to knowingly do any business
in the conflict diamonds as have been banned vide UN Security Council
Resolutions No. 1173, 1176 and 1343(2001) or the conflict diamonds which come
from any area in Africa including Liberia controlled by forced rebelling against
the legitimate and internationally recognised Government of the relevant
country.
ii) not to do direct or indirect import of
rough diamonds from Sierra Leone and/or Liberia whether or not such diamonds
originated in Liberia in terms of UN Security Council Resolution No.1306 (2000)
which prohibits the direct or indirect import of all rough diamonds from Sierra
Leone and 1343 (2001) which prevents such import of all rough diamonds from
Sierra Leone and 1343(2001) which prevents such import from Liberia.
iii) to follow Kimberley Process Certification
Scheme for dealing in diamonds.
2. I am also giving my consent to the
withdrawal of all my credit entitlements, if at any time, I am found guilty of
knowingly having conducted business in such diamonds".
|