Explanatory Memorandum to COM(2013)429 - Rules and procedures to enable the participation of Greenland in the Kimberley Process certification scheme

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This page contains a limited version of this dossier in the EU Monitor.

1. CONTEXT OF THE PROPOSAL

This proposal aims at enabling Greenland to participate in the Kimberley Process certification scheme on rough diamonds through its cooperation with the European Union. The scheme set out in the proposal would allow for the export of rough diamonds from Greenland to the Union as well as to other participants of the certification scheme, provided that all imports and exports of rough diamonds are verified and, for exports, certified by Union authorities pursuant to the rules set out in Regulation (EC) No 2368/2002 implementing the Kimberley Process certification scheme for the international trade in rough diamonds.

This association would strengthen economic relations between the European Union and Greenland in the diamond industry, and in particular it would enable Greenland to export rough diamonds accompanied by the European Union Certificate issued for the purposes of the certification scheme, with a view of promoting the economic development of Greenland.

1.

RESULTS OF CONSULTATIONS WITH THE INTERESTED PARTIES AND IMPACT ASSESSMENTS



Greenland and Denmark have agreed to the approach taken by the proposal and will undertake to transpose and implement in the legislation applicable to Greenland the relevant provisions of Regulation (EC) No 2368/2002 as regards the conditions and formalities for importing and exporting rough diamonds, their transit via the Union and to a participant other than the Union, the participation of the Union, including Greenland, in the Kimberley Process certification scheme, obligations relating to due diligence, anti-circumvention, exchange of information, and ensuring compliance with such provisions.

2.

LEGAL ELEMENTS OF THE PROPOSAL



The legal basis of the Council Decision is Article 203 TFEU. The proposal for this Council Decision is closely connected to an amendment of Regulation (EC) No 2368/2002 which extends the territory of the Union to also cover the territory of Greenland for the purposes of the Kimberley Process certification scheme. Accordingly, Greenland will be prohibited to accept imports or exports of rough diamonds without a valid Kimberley Process certificate. This will allow for the export of rough diamonds from Greenland to third countries as long as they are accompanied by a European Union Kimberley Process certificate. For imports into Greenland from third countries the rough diamonds and the accompanying certificate will first have to be submitted for verification to one of the six authorities of the Union who deal with issuing EU Kimberley Process Certificates.

The proposal for the Council Decision sets out specific rules for circulation of rough diamonds between the Union and Greenland, either with the Union or Greenland as destination, or with the view that rough diamonds would be then exported to a third country from the Union. In either case, the main requirements for rough diamonds to enter or leave the territory of Greenland or the Union is to (1) be accompanied by (a) either a document (or a copy thereof validated by a Union authority) attesting that they were mined in Greenland, or (b) a copy of a Kimberley Process certificate as validated by a Union authority, and (2) be in sealed tamper-resistant containers.

Rough diamonds mined or extracted in Greenland, provided that they have not been exported previously to a third country, may enter the Union’s customs territory by the use of an attesting document issued by authorities in Greenland. These shipments upon entry to the Union’s customs territory will be have to be verified by a Union authority, and the copy issued by this authority will have to accompany shipments between the Union customs territory and Greenland for any subsequent circulation.

As for export of rough diamonds to and from third countries, Greenland will only be able to import or export if the diamonds are first shipped to one of the authorities of the Union to issue an EU Kimberley Process certificate or to verify the Kimberley Process certificate of another Kimberley Process participant.

Once rough diamonds mined or extracted in Greenland had been exported to a third country, upon their return they may circulate between the Union and Greenland according to the same rules that apply to all other rough diamonds imported into the Union.