The Kimberley Process has completely revolutionized the diamond industry over the past few years. The process, which allows trading only in diamonds which carry the Kimberley Process Certification – i.e. a certificate that verifies the stones were mined legally – has regulated diamond trade and improved the diamond industry's public image. Israel, being a diamond industry leader, will assume chairmanship of Kimberley Process in 2010, and will lead the fight against the use of conflict diamonds.
Israel proved its commitment to legal diamond trade last week, when the Supreme Court affirmed a decision to confiscate a 14-carat, $71,500 diamond, seized by Israeli customs after it was found to be lacking a Kimberley certification. All proceeds form the sale of the diamond will be donated to the International Kimberly Fund.
"Public interest calls for firm action in order to eradicate this phenomenon," Justice Edna Arbel wrote in the ruling. "Conflict diamonds have resulted in the gravest expressions of violence for the sake of mere profit, and by way of destroying the economical systems of the counties infected by it."
The 14.32-carat diamond was imported in February 2007 from Mali, a west Africa nation which is not a member of the Kimberley Process; hence the lack of certification. Israeli customs agents refused to allow the gem into Israel and it was deposited with the Industry, Trade and Labor Ministry's Diamond Controller's Office.
In May of 2008, the Israeli company which order the diamond decided to cancel the deal, but claimed the diamond controller refused to release the stone for shipment back to sender; citing it would be a gross violation of Kimberley guidelines, to the extant that it may jeopardize the local diamond industry. The Diamond Controller's Office, however, claimed that it never ordered the diamond be returned to Mali and only gave the company the necessary additional time to try and acquire a Kimberley certificate – which it failed to do.
The Supreme Court was eventually asked to rule on whether or not the controller's was given to wide a jurisdiction in the matter. It found that the decision was within reason, adding that in the future, should a company prove it was acting in good faith or that the certification failed to come through due to a technicality, it would be able to keep the gem. Should a significant factor be the cause for the lack of certification, the diamond controller would be within his rights to seize the diamond.
The Industry, Trade and Labor Ministry's customs guidelines note customs agents cannot release non-Kimberly certified diamonds. Customs agent can exercise their discretion and release the diamonds to the importer, who must provide sureties that a Kimberley certificate will be obtained. Should the importer fail to provide the certificate "within a time period determined by the comptroller," the latter may confiscate the gems.
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