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This publication is available at https://www.gov.uk/government/publications/partnership-pack-preparing-for-a-no-deal-eu-exit/businesses-trading-in-rough-diamonds-what-to-expect-on-day-one-of-a-no-deal-scenario
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.
How processes will change
If the UK leaves the EU on 29 March 2019 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.
Trading in rough diamonds with the EU
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:
- all rough diamond exports from the UK (including to the EU) will require UK KP certification
- all rough diamond imports from the EU will require EU KP certification
Trading if the UK is not a member of the Kimberley Process
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.
Things you can do now
If you are a trader in rough diamonds, you should consider now the potential effects of a ‘no deal’ exit:
- consider the requirements of the new KP arrangements with your EU customers and plan accordingly for future trading with minimal disruption after EU exit
- consider making preparations to have any rough diamonds on consignment or loan to countries in the KPCS (including the EU) returned to you before the UK leaves the EU, to avoid delays while the UK awaits approval of its KP application
- read more information and updates about the UK’s KP application for trading in rough diamonds from the Foreign and Commonwealth Office on GOV.UK
- read the government’s letter to traders about Brexit and the trade in rough diamonds on GOV.UK
- contact the Government Diamond Office by email or phoning 020 7008 6903 or 020 7008 5797, Monday to Friday, 9:30am to 3:30pm to discuss the KPCS further
- stay up-to-date with these changes by registering for email alerts. Follow the link, add your email address, select ‘submit’, select ‘Add subscription’ and choose ‘EU Exit’ then select ‘Submit’