Businesses trading in rough diamonds
Updated 21 December 2018
Share this article
Updated 21 December 2018
The international trade in rough diamonds is regulated by the Kimberley Process Certification Scheme (KPCS), which imposes extensive requirements on its members to enable them to certify shipments of rough diamonds as ‘conflict-free’ and prevent conflict diamonds from entering the legitimate trade.
This allows businesses in the UK to trade with participant countries in the KPCS, including EU countries. Currently, the EU represents the UK within the Kimberley Process (KP) for 2018 and its Council (EC) Regulation No 2368/2002 implements the KP in the UK.
If the UK leaves the EU on 29 March 2019 (may also apply to new exit date on 31 December 2020) without a deal, the UK will need to become an independent participant in the Kimberley Process immediately in order for businesses to continue trading in rough diamonds with countries in the scheme, including EU countries.
The UK government will bring in new laws for the KPCS in the UK, and a new UK KP certificate will replace the EU one.
If the UK government has not secured a way to participate in the KPCS independently by 29 March, the UK trade in rough diamonds will be frozen.
You will require KP certification for trading in rough diamonds with countries in the EU, in the same way as trading with the other KPCS countries. This means:
You will not be able to trade internationally in rough diamonds if the UK is not a member of the KP until the UK secures independent participation in the scheme.
This function has been disabled for Brexit - An Irish Guide.
The UK withdrew almost all of its no-deal planning notes in January 2020. However, they may be re-instated on the same or similar terms with respect to the 31st December withdrawal date. Most of the issues with which they deal, would be equally relevant to both a "no-deal" scenario or a "skinny" trade agreement scenario, one or other of which seems to be inevitable as and from 1st January 2021.