Basic information
Outline of the system
The Export and Import of Rough Diamonds Act (S.C., 2002, c.25) received Royal Assent on 12 December 2002 and came into force on 1st January 2003. The Act provides for controls on the export, import or transit across Canada of rough diamonds and for a certification scheme for the export of rough diamonds in order to meet Canada's obligations under the Kimberley Process. Under this system, every person who exports rough diamonds must ensure that the diamonds are in a container that meets the requirements of the Export and Import of Rough Diamonds Regulations (SOR/2003-15) and are accompanied by a Canadian Certificate. On receiving an application for a Canadian Certificate from a resident of Canada for the export of rough diamonds, the Minister of Natural Resources must issue a Canadian certificate if the application meets the requirements of the Regulations. Before issuing a Canadian Certificate, the Minister must be satisfied that the export is to a participant, the information contained in the application is accurate, and the rough diamonds in respect of which the application is made originated in Canada, were extracted from mineral concentrates in Canada, were imported from a participant or were in Canada prior to 1st January 2003.
Every person who imports rough diamonds must ensure that the diamonds are in a container that meets the requirements of the Regulations and are accompanied by a valid Kimberley Process Certificate that was issued by a participant, has not been invalidated by the participant and that contains accurate information. For the purpose of this Act, in-transit rough diamonds are deemed not to be imported or exported.
Product coverage
The purpose of this Act is to provide for controls on the export, import or transit across Canada of rough diamonds in order to meet Canada's obligations under the Kimberley Process. The Kimberley Process is an international understanding among participants that was recognized by Resolution No.55/56 adopted by the General Assembly of the United Nations on 1 December 2000. The Kimberley Process establishes minimum requirements for an international scheme of certification for rough diamonds with a view to breaking the link between armed conflict and the trade in rough diamonds. A rough diamond is defined as a diamond that is unsorted, unworked or simply sawn, cleaved or bruted, and that falls under subheading 7102.10, 7102.21 or 7102.31 in the List of Tariff Provisions set out in the schedule to the Customs Tariff, but does not include diamonds that are of a class prescribed by regulation.
Nature of licensing
Automatic
If Automatic, administrative purpose
Non-Automatic
If Non-Automatic, description of the notified Non-Automatic Licensing regime
Products under restriction as to the quantity or value of imports
The licensing is intended to impose controls on rough diamonds to regulate their import, export and transit across Canada in order to meet Canada's obligations under the Kimberley Process. The Kimberley Process establishes minimum requirements for an international certification scheme for rough diamonds with a view of breaking the link between the illicit transaction of rough diamonds and armed conflict as a contribution to prevention and settlement of conflicts.
Questions for products under restriction as to the quantity or value of imports
Not applicable. Quantity and value restrictions, beyond the minimum requirements for Certificates in Annex I of the Kimberley Process Certification Scheme Document, do not apply to imports of rough diamonds.
The system applies to products originating from which country?
The system applies to rough diamonds originating in and coming from a participant. A participant is defined as a State, international organization of States or dependent territory of a State, or a customs territory, named in the Schedule to the Act.
Expected duration of licensing procedure
Legal requirements
Is the licensing statutorily required?
The licensing of exports is a requirement under section 8 of the Act, which establishes that a Canadian Kimberley Process Certificate is required for exporting rough diamonds from Canada. Section 12 provides that if the Minister of Natural Resources determines that information provided by an applicant in order to obtain a Canadian Certificate, or information appearing on the certificate, is inaccurate or has changed, the Minister may invalidate the certificate.
Section 14 of the Act requires that imports of rough diamonds be accompanied by a Kimberley Process Certificate issued by a participant, that has not been invalidated, and that contains accurate information. Subsection 15(1) provides that if imported rough diamonds arrive in Canada accompanied by a Kimberley Process Certificate that meets the requirements of section 14 of the Act, but are in a container that has been opened, the Minister may order the person who imported the rough diamonds to return them to the participant who issued the certificate.
Does the legislation leave designation of products to be subject to licensing to administrative discretion?
Pursuant to paragraph 35(a), the Minister of Natural Resources may make regulations to prescribe the classes of diamonds to be excluded from the definition of "rough diamond".
Is it possible for the government to abolish the system without legislative approval?
Legislative approval would be required to abolish this system.
Eligibility of applicants
Is there a system of registration of persons or firms permitted to engage in importation?
Export licences are issued by the Kimberley Process Office in the Department of Natural Resources under the authority of the Export and Import of Rough Diamonds Act. Only Canadian residents may apply for a licence to export rough diamonds from Canada. Although the system does not currently require registration of persons or firms, the Minister may make regulations respecting the manner of submitting an application, specifying the information that must be included in it and the documents that must accompany the application.
What persons or firms are eligible to apply for a licence?
Import licences are issued by foreign authorities of the respective participants.
Is there a registration fee?
Is there a published list of authorized importers?
Contact point for information on eligibility
Ministry/Authority
Address
Telephone
Fax
E-mail address
Website
Contact officer
Submission of an application
Administrative body(ies) for submission of an application
Documentation requirements
What information is required in applications?
An application for a Canadian licence for export of rough diamonds under section 9 of the Act must include the following information as set out in section 2 of the Regulations:
(a) The applicant's name and address in Canada and, if the applicant is a corporation, the name of the individual submitting the application on its behalf;
(b) If the applicant is not the exporter of the rough diamonds, the name and address of the exporter;
(c) The name and address of the person to whom the exporter is exporting the rough diamonds;
(d) The name of the participant to which the rough diamonds are to be shipped;
(e) The origin of the rough diamonds including:
(i) If they were mined in Canada, the place and name of the mine;
(ii) If they were recovered during exploration in Canada, the longitude and latitude of the exploration site, and the place and name of the facility in which they were extracted;
(iii) if they were extracted in Canada from mineral concentrates that originated outside Canada, the place and name of the facility in which they were extracted;
(iv) if they were present in Canada at the coming into force of section 8 of the Act, documentary evidence establishing their presence in Canada at that time; and
(v) if they were imported into Canada after the coming into force of section 8 of the Act, the serial number of each Kimberley Process Certificate that accompanied the rough diamonds;
(f) The mass, measured in carats, of the rough diamonds in the shipment;
(g) The value, in United States dollars, of the rough diamonds in the shipment;
(h) The subheading in the List of Tariff Provisions in the schedule to the Customs Tariff under which the rough diamonds are classified;
(i) The number of containers in the shipment and a seal number for each container; and
(j) A declaration signed and dated by the applicant stating that the information contained in the application is accurate.
Section 3 of the Regulations provides that an application for the replacement of a Canadian licence for the export of rough diamonds under section 11 of the Act must meet the following criteria:
(a) Be made before the export of the rough diamonds;
(b) Contain all the information required under section 2 of the Regulations including any information appearing on the Canadian licence that is inaccurate of has changed; and
(c) Be accompanied by the Canadian licence in respect of which the application is made.
Under section 4 of the Regulations, an application to the Minister under section 9 or 11 of the Act must be delivered by hand or sent by mail or courier or by facsimile or other electronic means.
What documents is the importer required to supply with the application?
Window of submission of an application
How far in advance of importation must application for a licence be made?
The Kimberley Process Certification Scheme is implemented through the national legislation of the respective participants. The participants' exporting authority is responsible for issuance of licences for export.
Are there any limitations as to the period of the year during which application for licence can be made? If so, explain
Issuing the license
Can a licence be granted immediately on request?
It takes typically a business day to issue a Canadian licence for exports of rough diamonds from Canada. For clients with remote printing capability, it may take as little as a couple of hours from the submission of an application to issue a Canadian Certificate for exports.
Can licences be obtained within a shorter time-limit or for goods arriving at the port without a licence
Although participants' licensing systems conform to the Kimberley Process minimum requirements, the terms vary from participant to participant in respect to application requirements and time frame for issuance of licences.
Which administrative body is responsible for approving application of licences?
The Canadian licences for exports are issued by the Kimberley Process Office in the Department of Natural Resources based in Ottawa.
Must the applications be passed on to other organs for visa, note or approval?
There are no further approvals required from other administrative entities for the issuance of export licences.
Are there any other conditions attached to the issue of a licence?
The Minister of Natural Resources may make regulations specifying the content of Canadian licences. Additionally, pursuant to section 7 of the Regulations, every exporter of rough diamonds must report the export to attest to the accuracy of the information contained in the Canadian licence by signing the report and sending it to the Minister within seven days of Export.
Fees and other administrative charges
Is there any licensing fee or administrative charge?
There are currently no licensing fees or administrative fees charged to applicants for the issuance of licences for export of rough diamonds from Canada. However, section 34 of the Act provides that the Governor in Council may make regulations to prescribe the fees payable for the issuance or replacement of a Canadian licence.
What is the amount of the fee or charge?
Is there any deposit or advance payment required associated with the issue of licences?
There is no deposit or advance payment requirement associated with the issuance of export licences.
Amount or rate?
Is it refundable?
What is the period of retention?
What is the purpose of this requirement?
Refusal of an application
Under what circumstances may an application for a licence be refused other than failure to meet the ordinary criteria?
If an application for a Canadian licence for exports does not meet the criteria in subsection 9(2) of the Act, paragraph 9(1)(c) provides that the Minister must reject the application
Are the reasons for any refusal given to applicants?
The applicant is provided with the reasons for rejection in writing. Section 10 provides that if the applicant does not remedy the deficiency, within such time as the Minister considers reasonable, the Minister may reject the application.
Have applicants a right of appeal in the event of refusal to issue a licence?
If so, to what bodies and under what procedures?
Importation
Are there any limitations as to the period of year during which importation may be made?
What documents are required upon actual importation?
Pursuant to subsection 14(1) of the Act, a Kimberley Process Certificate issued by a participant is required to accompany import shipments of rough diamonds into Canada.
Are there any other administrative procedures, apart from import licensing and similar administrative procedures, required prior to importation?
Apart from procedures provided for in the Act and the Regulations, including requirements associated with inspections, record keeping and export and import reporting, no additional administrative procedures are required.
Conditions of licensing
What is the period of validity of a licence? Can the validity be extended? How?
Section 6 of the Regulations provides that a Canadian Certificate is valid until 24:00 Greenwich mean time of the day that is 60 days after the date of issue. The validity of a licence cannot be extended. However, the period of validity may be changed by regulation by the Minister of Natural Resources pursuant to subsection 35 (b) of the Act.
Is there any penalty for the non-utilization of a licence or a portion of a licence?
There is no penalty for the non-utilization of a licence.
Are licences transferable between importers? If so, are any limitations or conditions attached to such transfer?
Licences are not transferable.
Foreign Exchange
Is foreign exchange automatically provided by the banking authorities for goods to be imported?
Not applicable.
Is a licence required as a condition to obtaining foreign exchange?
Not applicable.
Is foreign exchange always available to cover licences issued?
Not applicable.
What formalities must be fulfilled for obtaining the foreign exchange?
Not applicable.