FEDERAL REG

SOR/2016-6: Schedule to the Export and Import of Rough Diamonds Act — Order Amending Export and Import of Rough Diamonds Act

REGISTRATION OF FEDERAL REGULATION - VIA PART II OF THE GAZETTE

Registered
January 30, 2016


REGULATORY IMPACT ANALYSIS STATEMENT (This statement is not part of the Order.) 1. Background The Kimberley Process (KP) is an international agreement between diamond-producing and -trading countries (participants), representatives of civil society and industry that was negotiated to prevent conflict diamonds from entering into legitimate diamond trade. Conflict diamonds are those diamonds sold b... (Click for more)


Published on January 30, 2016

Bill Summary

SOR/2016-6: Schedule to the Export and Import of Rough Diamonds Act — Order Amending Export and Import of Rough Diamonds Act

REGULATORY IMPACT ANALYSIS STATEMENT (This statement is not part of the Order.) 1. Background The Kimberley Process (KP) is an international agreement between diamond-producing and -trading countries (participants), representatives of civil society and industry that was negotiated to prevent conflict diamonds from entering into legitimate diamond trade. Conflict diamonds are those diamonds sold by rebel forces to purchase arms for use in conflict against legitimate governments. The KP came into force on January 1, 2003. Under the Kimberley Process Certification Scheme (KPCS), all exports of rough diamonds must be accompanied by a certificate (issued by a participating government or an agency authorized by that government) confirming that shipments of rough diamonds are free from conflict diamonds. Trade in rough diamonds can only occur between participants. In order to be a participant, governments are required to have appropriate legislation in place that allows for adequate enforcement of the terms and conditions of the Scheme. In order for Canada to meet its obligations as a participant in the KPCS, new legislation and regulations needed to be put in place. On December 12, 2002, the Export and Import of Rough Diamonds Act (EIRDA), was passed into law and permitted Canada to begin implementation of the Certification Scheme on January 1, 2003. 2. Issues Pursuant to section 3 of the EIRDA, the Order is designed to amend the schedule to the Act, which is required to bring it into agreement with the KP list of participants. 3. Objectives Since January 1, 2003, the EIRDA, which provides the Minister of Natural Resources the authority necessary to fulfill Canada’s commitments under the KPCS, is in force in Canada. Participation to the KPCS is essential in order for Canadian producers and users of rough diamonds to export and import those goods internationally and remain competitive. 4. Description Since the last amendment to the schedule in December 2014, the list of participants to the KPCS has changed and now includes 54 participants representing 82 countries, including the European Union with its 28-member countries. As a result of the KP administrative decision on resumption of exports of rough diamonds from the Central African Republic, adopted by the KP through a written procedure on July 17, 2015, the latter country has been re-admitted to the KPCS and must therefore be added to the schedule. 5. Consultation Amending the schedule to the EIRDA is an administrative requirement which does not represent changes in policy or in regulations which elicit or require comment. Upon approval by the Minister of Natural Resources, the amendment may be submitted and published in Part II of the Canada Gazette without prior submission for comment in Part I of the Canada Gazette. 6. Rationale A change to the schedule of the EIRDA is required for Canada to remain in compliance with the minimum requirements of the Scheme. To be in breach would negatively impact the profitability and the level of employment in Canada’s diamond mining industry and the economy in general. 7. Implementation, enforcement and service standards Failure to comply with the EIRDA, or its related regulatory or other requirements, may lead to prosecution. The Canada Border Services Agency and the Royal Canadian Mounted Police are responsible for the enforcement of the EIRDA. 8. Contact Louis Perron, Eng. Kimberley Process Office Coordinator Industry and Commodity Analysis Division Minerals and Metals Sector Natural Resources Canada 580 Booth Street, 10th Floor Ottawa, Ontario K1A 0E4 Telephone: 613-850-9808 Email: [email protected] Footnote a S.C. 2002, c. 25 Footnote 1 S.C. 2002, c. 25

This Bill does not amend any statutes.

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