Product Sourcing Policy
Our Diamond Sourcing Policy
You, as a customer, can be confident that concrete and comprehensive measures are being taken to ensure the products we sell do not include Conflict Diamonds.
We take diamond sourcing very seriously
In African countries where rebel forces sometimes have control of diamond mines, proceeds from the sales of rough diamonds produced from those mines are often used to finance weapons purchases. Such diamonds are estimated to currently account for less than 1% of the world diamond production. We are appalled by the violence in countries where proceeds from the sale of diamonds and other natural resources (e.g., oil, timber) are being used to fund rebel activities. All nations with significant involvement in the diamond trade agreed on a global certification system to control the export and import of rough diamonds mined from January 1, 2003. This system is aimed at preventing criminals from introducing contraband diamonds mined in African combat zones into the legitimate supply chain. Since 2003, the Kimberley Process Certification Scheme (KPCS), supported by national and international legislation, has sought to certify the legitimate origin of uncut diamonds. We welcomed this important development and are actively supporting the system designed to safeguard our products’ integrity.
Role of Governments
As of November 2007, 74 countries had adopted the KPCS. It requires that each shipment of rough diamonds – before stones are cut and polished – be in a tamper-resistant container and accompanied by a government-validated certificate. Each certificate is uniquely numbered and contains data describing the shipment’s contents. Participating countries have pledged to turn back or impound shipments of rough diamonds from any nation that fails to subscribe to the KPCS standards. Shipments lacking proper certification will be treated in a similar way. The KPCS is designed so that rough diamonds are packaged with a certificate of origin soon after they are mined. At later stages of the diamonds’ journey to market, rough diamonds also carry a certificate describing the shipment’s contents and confirming that the stones are coming from a Kimberley Process participant. Any country declining to participate is effectively barred from the international diamond trade. Learn more at www.kimberleyprocess.com.
Role of Industry
To supplement the government program, the International Diamond Manufacturers Association (IDMA) and the World Federation of Diamond Bourses (WFDB) – representing virtually all significant processors and traders – have established a regimen of self-regulation. Its principal element is a system of warranties that will accompany invoices covering the sale of rough diamonds, polished diamonds and diamond jewelry. The requirement applies to rough diamonds mined after December 31, 2002 and products fabricated from them. Participants in the KPCS must have internal controls to prevent conflict diamonds from entering the supply chain of legitimate diamonds and must carry out annual audit compliance. Furthermore, participants only trade with counterparts who themselves have met the minimum requirements of the certification system.
Role of Retailer
We comply with the Kimberley Process and require all our trade suppliers of diamonds and diamond jewelry to provide us with a warranty that they do not supply us with conflict diamonds The warranty is as follows: “The diamonds herein invoiced have been purchased from legitimate sources not involved in funding conflict and in compliance with United Nations Resolutions. The seller hereby guarantees that these diamonds are conflict free, based on personal knowledge and/or written guarantees provided by the supplier of these diamonds.” KPCS certificates for rough diamonds and warranties for polished diamonds received from suppliers are kept at our central office. Compliance with KPCS regulations, the World Diamond Council, the Diamond Manufacturers and Importers Association, and the World Federation of Diamond Bourses is reviewed annually by our company’s internal audit department. The results are reported to the Corporation’s Audit Committee. You can be confident that concrete and comprehensive measures are being taken to ensure the products we sell do not include conflict diamonds. If you have further questions, please contact Customer Services on: 08004581066