Order Amending the Schedule to the Export and Import of Rough Diamonds Act: SOR/2022-115
Canada Gazette, Part II, Volume 156, Number 12
SOR/2022-115 May 27, 2022
EXPORT AND IMPORT OF ROUGH DIAMONDS ACT
The Minister of Natural Resources makes the annexed Order Amending the Schedule to the Export and Import of Rough Diamonds Act under section 3 of the Export and Import of Rough Diamonds Act footnote a.
Ottawa, May 20, 2022
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 a is amended by deleting the following:
- South Korea
2 The schedule to the Act is amended by adding the following in alphabetical order:
- Republic of Korea
- Russian Federation
Coming into Force
3 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 was established 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 KPCS.
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 KPCS on January 1, 2003.
Pursuant to section 3 of the EIRDA, the Order is designed to amend the schedule of 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, has been 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 February 16, 2021, the list of participants to the KPCS has changed and now includes 60 participants representing 86 countries/territories, including the European Union with its 27 member states. As a result of a consensus reached on the admission of Kyrgyzstan, Mozambique and Qatar to the KPCS during the KP plenary in November 2021, the latter countries have been admitted to the KPCS and must therefore be added to the schedule.
The Order will also amend certain country names to reflect recent name changes and enhance clarity, as follows: Swaziland to Eswatini, Russia to Russian Federation and South Korea to Republic of Korea.
Amending the schedule of 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 KPCS. 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, compliance and enforcement, and service standards
Failure to comply with the EIRDA, or its related regulatory 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.
Kimberley Process Office Coordinator
Extractive Sector Transparency and Taxation Division
Lands and Minerals Sector
Natural Resources Canada
580 Booth Street, 10th Floor