European Union. Annual Report

Transcription

1 KIMBERLEY PROCESS CERTIFICATION SCHEME European Union Annual Report 2012 This Annual report is submitted by the European Union in accordance with Section VI, par. 11 of the KPCS Document, and in line with the Administrative Decision on Peer Review. The structure of this report follows the Guidelines for the Annual Report annexed to the Administrative Decision on Peer Review. In line with the Administrative Decision on Internal Controls and the Brussels Declaration on internal controls of Participants with rough diamond trading and manufacturing, this annual report contains information regarding implementation and internal controls, as well as enforcement and infringements. A. Institutional Framework 1. Overall responsibility: The authority with overall responsibility for the implementation of the KPCS in the European Union and for ensuring that the relevant European legislation is applied throughout the EU is the European Commission. The full address and names of contact persons are given below: European Commission (FPI) B-1049 Brussels Belgium Tel: Fax: RELEX-KIMBERLEY-PROCESS@ec.europea.eu Pre-notification address (see section F below): prenotifyeu@jrc.ec.europa.eu Contact persons (address as above): Ms Genoveva RUIZ CALAVERA Tel: genoveva.ruiz-calavera@ec.europa.eu Mr Joris HEEREN Tel: joris.heeren@ec.europa.eu Ms Marianna KONDAS Tel: marianna.kondas@ec.europa.eu Ms Katharine SHEPHERD -1-

2 Tel: Import and Export Authorities: Under the terms of the relevant legislation (specifically, Council Regulation (EC) No 2368/2002 of 20 December 2002), each Member State of the European Union can designate an EU Authority (formerly a Community Authority ) at the national level acting as the importing and exporting authority for the purposes of the EU. The EU Authorities are listed in Annex III to Council Regulation (EC) No 2368/2002. In 2011, six EU Authorities operated in the European Union. The contact details of the six EU Authorities, including the names of contact persons, are given below: 1. EU Authority in Belgium: Federal Public Service of Economy Italielei 124, bus 71 B-2000 Antwerp Belgium Tel: +32 (0) Fax: +32 (0) or +32 (0) kpcs-belgiumdiamonds@economie.fgov.be Contact persons: Ms Frieda COOSEMANS Tel: +32 (0) frieda.coosemans@economie.fgov.be Ms Anja WAEM Tel : +32 (0) anja.waem@economie.fgov.be (NB: the EU Authority in Belgium currently issues certificates numbered from EU upwards) 2. EU Authority in Bulgaria Ministry of Finance International Financial Institutions and Cooperation Directorate 102, G. Rakovski str. Sofia, 1040 Bulgaria Tel. (359-2) / Fax. (359-2) ific@minfin.bg Contact person (for the Guidelines only): Ms Jenya DINKOVA (details as above) j.dinkova@minfin.bg (NB: The EU Authority in Bulgaria issues certificates numbered from EU to EU ) 3. EU Authority in the Czech Republic General Directorate of Customs (Generální ředitelství cel) Budějovická 7-2-

3 Praha 4 Czech Republic Tel: Fax: diamond@cs.mfcr.cz Contact person: Ms Petra NEUMANOVA p.neumanova@cs.mfcr.cz (NB: The EU Authority in the Czech Republic issues certificates numbered from EU to EU ) 4. EU Authority in Germany For the issuing and validation of Community Certificates: Hauptzollamt Koblenz - Zollamt Idar-Oberstein Zertifizierungsstelle für Rohdiamanten Hauptstrasse 197 D Idar-Oberstein Germany Contact person: Mr Jürgen BENDER Tel Fax: poststelle@zabir.bfinv.de For all other issues: Bundesfinanzdirektion Südost Krelingstraße 50 D Nürnberg Germany Contact persons: Ms Nicole Baur and Mr. Alexander KOPOLT Tel: Fax: diamond.cert@bfdso.bfinv.de (NB: The EU Authority in Germany issues certificates numbered from EU to EU ) 5. EU Authority in Romania Autoritatea Naţională pentru Protecţia Consumatorilor (National Authority for Consumer Protection) Direcţia Metale Preţioase şi Pietre Preţioase şi Proces Kimberley (General Department for Precious Metals, Precious Stones and the Kimberley Process) Bd. Aviatorilor Nr. 72, sectorul 1 Bucureşti, România, -3-

4 (72th Aviatorilor Bvd., sector 1, Bucharest, Romania) Cod postal (Postal code) Tel : Fax: office@anpc.ro website: Contact persons: Ms. Ioana VIZITIU ioanavisitiu@anpc.ro Ms Teodora STEFAN CEL MARE TANASOIU teodorascm@anpc.ro Ms Roxana NEAGOE roxananeagoe@anpc.ro (NB: The EU Authority in Romania issues certificates numbered from EU to EU ) 6. EU Authority in the United Kingdom Government Diamond Office Foreign and Commonwealth Office Room W3.135 King Charles Street London SW1A 2AH United Kingdom Fax: gdo@gtnet.gov.uk Contact person: Mr Nick JAGGER Tel: nick.jagger@fco.gov.uk Ms Kirstie SMITH Tel : kirstie.smith@fco.gov.uk Mr Martin LEWIS Tel : martin.lewis@fco.gov.uk (NB: The EU Authority in the United Kingdom issues certificates numbered from EU to EU ) B. Legal Framework The legislation in place at the time at which the EU became a Participant in the KPCS remains in place and continues to provide the basis for implementation of the KPCS in the EU. The basic legislative act, Council Regulation (EC) No 2368/2002, has been amended periodically, in order to deal with amendments to the list of Participants and also in order to update details of the EU Authorities. There was one amendment to the Regulation in 2012, introducing the new EU KP certificate which makes a reference to the European Union -4-

5 instead of the European Community. The full up to date text of the Regulation can be accessed on the website of the European Commission at: In view of Croatia s accession to the EU scheduled for 1 July 2013, during 2012 all the relevant EU legislation was reviewed to accommodate this change, including Council Regulation (EC) No 2368/2002. National regulations setting mechanisms and administrative provisions for implementation of Regulation (EC) 2368/2002 have not been modified substantially in C. Import and Export Regime Volume of exports and imports. The number of Kimberley Process certificates issued by EU KP Authorities in 2012 amounts to a total of 28960, for a total volume of million carats, valued at $ 17.8 billion. Table 1 in annex provides the details for EU exports in KP certificates were sent to 37 participants as per Table 2 in annex. The number of Kimberley Process certificates received by EU KP Authorities in 2012 amounts to a total of 10849, for a total volume of million carats, valued at $ 16.8 billion. Table 3 in annex provides the details for EU imports in KP certificates were received from 35 participants as per Table 4 in annex. D. System of internal controls and Industry Self-Regulation (based on recommendation optional) With regard to the system of internal controls, no changes were made. Regarding enforcement and infringements, EU customs authorities conduct regular inspections of diamond imports and exports and personal searches, and have taken action in respect to various cases of non-conformity with KPCS rules. In 2012, the EU customs authorities detained one new shipment that amounted to approximately 19 carats and $ 152 in value. This is in addition to detained shipments from previous years in relation to which investigations are ongoing. In greater detail, 15 shipments were seized in previous years that amounted to roughly carats and worth around $ 1.72 million. With reference to court proceedings during the course of 2012 the following are noted: Two (2) new proceedings were launched in 2012 for criminal activity in relation to illicit diamond trading, mostly imports/exports without a valid KP certificate, or KP certificate fraud. Seven (7) proceedings initiated over the previous years have been closed. Five (5) investigations are currently pending decision on possible legal proceedings. In addition, fines were imposed at an administrative level in relation to certain minor instances of non-compliance (a total of 4 fines worth euro). Concerning fake KP certificates in 2012 no such cases were reported with the exception of instances of original KP certificate acquisitions based on false information. With regard to Enhanced Vigilance against illicit diamonds from various sources the following are noted for 2012: Enhanced Vigilance against illicit diamonds from Cote d Ivoire (paragraphs 5 and 7 of Moscow resolution of November 2005). The EU continues to exercise vigilance, including updating industry on the status of UN sanctions and conducting vigilance related -5-

6 interceptions and inspections. Moreover, the EU notes that it is extremely difficult for diamond experts to distinguish Ivorian rough diamonds from other rough diamonds, because there is no reference material at hand. Lastly the Ivorian Kimberley Process authorities with technical support provided by other KP members are currently implementing a road map of actions and activities that should lead -in the medium termto the country s readmission to the KP and the subsequent lifting of restrictions to the trade of its diamonds. Furthermore, concerning the situation in the Central African Republic, the EU circulated to all member states a KP Chair Enhanced Vigilance notice published on 28 December 2012 that updated the security situation in the country and presented the advancement (at that point) of the rebel group Seleka into a number of diamondproducing areas including Bria, Sam Ouandja and Bamingui. With regard to other possible instances of non-compliance, the EU has engaged bilaterally in exchanges with various other Participants. The EU has generally received a positive response to such approaches. Regarding the functioning of a voluntary system of industry self-regulation, the EU Authorities in Antwerp and London have provided the European Commission with reports on their assessment of the functioning of the system of industry self-regulation in accordance with Article 17(5) of Regulation (EC) No 2368/2002. All members of bourses are required to provide independently audited declarations of compliance. Moreover all relevant information on the KP is regularly communicated to the bourses. Lastly, the EU Authorities carried out random inspections of export shipments, and found no evidence of breach. With reference to prior notifications received for import in 2012 by the EU authorities, their total number reached At the same time, regarding advance notifications for exports, the EU authorities sent a total of advance notifications during the course of the year. E. Statistics The EU has submitted statistical reports on its quarterly trade and certificate counts for all quarters of 2012 within the deadlines set by the KPCS document. Updates for EU data for 2011 were also submitted on the basis of results of conciliation exercises concluded in the meantime. The EU has also submitted to the KP-WGS a reply on the Statistical Analysis report prepared for 2011 on the EU by Civil Society. This reply was prepared as an obligation of each KP Participant to comment on the Statistical Analysis report prepared on them, annually. The EU has been an active member in the KP-WGS since the inception of the KPCS. As a part of requirements from this participation, in 2012 the EU prepared the Statistical Analysis Reports for Japan (2011), CAR (2011) and USA (2010 and 2011). In , it led the WGS subgroup for the review of the KP-WGS Methodology for the analysis of statistical data which was concluded with the adoption of the document KP-WGS Guidelines for the Preparation, Review and Analysis of KP Statistical Data, at the 2012 Plenary meeting in Washington DC. The EU has been developing a methodology on how to prioritize the Participants to reconcile with partner trade Participants, and how to reconcile transaction data among trade partners. A presentation of this work was given in a KP-WGS session in the Washington Plenary meeting. Results of use of this semi-automated approach to reconcile KP data have been obtained for 2011 trade with the UAE, are currently finalized and will be communicated to this partner in April The approach will then be applied to a backlog of reconciliation exercises with other partners. The EU also expects to keep the KP-WGS updated on lessons learnt from these reconciliation exercises. -6-

7 Table 1 - EU exports 2012* EU exports 2012 Total Weight(ct) Total value (US$) Total number of KP Certificates Q1 34,837, ,873,100, ,856 Q2 27,327, ,229,743, ,014 Q3 28,412, ,967,489, ,094 Q4 36,244, ,743,366, ,996 TOTALS 126,822, ,813,699, ,960 EU exports Weight(ct) Value (US$) Weight(ct) Value (US$) Weight(ct) Value (US$) Q1 4, ,119, ,074, ,594, ,758, ,852,385, Q2 4, ,728, ,303, ,157, ,019, ,210,856, Q3 4, ,517, , ,517, ,548, ,953,454, Q4 6, ,500, , ,909, ,441, ,720,956, TOTALS 19, ,866, ,033, ,179, ,768, ,737,653, *status on 24/04/2013 These tables reflect the KP-based data on 24/04/2013 and amendments can occur after (bilateral) reconciliation of the KP-data -7-

8 Table 3 - EU imports 2012* EC imports 2012 Total Weight(ct) Total Value (US$) Total number of KP Certificates Q1 35,332, ,768,812, ,973 Q2 28,341, ,360,408, ,734 Q3 29,999, ,761,095, ,324 Q4 31,139, ,898,974, ,818 TOTALS 124,813, ,789,290, ,849 EC imports Weight(ct) Value (US$) Weight(ct) Value (US$) Weight(ct) Value (US$) Q1 2,556, ,418, ,426, ,827, ,349, ,181,565, Q2 1,952, ,056, ,856, ,188, ,531, ,886,163, Q3 2,354, ,382, ,986, ,488, ,658, ,262,223, Q4 1,964, ,624, ,504, ,757, ,670, ,495,592, TOTALS 8,828, ,725,481, ,774, ,263, ,210, ,825,545, *status on 24/04/2013 These tables reflect the KP-based data on 24/04/2013 and amendments can occur after (bilateral) reconciliation of the KP-data -8-