Understanding the Clean Diamond Trade Act: Legal Insights and Implications

Definition & Meaning

The Clean Diamond Trade Act is a federal law enacted in 2003 to prevent the financing of military activities through the sale of rough diamonds. This legislation aims to stop the trade of blood diamonds, which are diamonds sold to fund violent conflicts, particularly in several African nations. Under this Act, the President of the United States has the authority to ban the import and export of any rough diamond that does not comply with the Kimberley Process Certification Scheme, which ensures that diamonds are sourced ethically.

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Real-world examples

Here are a couple of examples of abatement:

One example of the Clean Diamond Trade Act in action is when a diamond importer is found to have imported rough diamonds that were not certified under the Kimberley Process. As a result, the importer may face penalties such as fines or restrictions on future imports. (hypothetical example)

Comparison with related terms

Term Definition Key Differences
Blood Diamonds Diamonds mined in war zones and sold to finance armed conflict. Blood diamonds specifically refer to the unethical sourcing of diamonds, while the Clean Diamond Trade Act regulates the trade to prevent such practices.
Kimberley Process An international certification scheme to prevent the trade of conflict diamonds. The Kimberley Process is a certification system, while the Clean Diamond Trade Act is a U.S. law enforcing compliance with that system.

What to do if this term applies to you

If you are involved in the diamond trade, ensure that all rough diamonds you import or export comply with the Kimberley Process Certification Scheme. Consider using US Legal Forms for templates that can help you navigate compliance and legal requirements. If you face complex legal issues, consulting a legal professional is advisable.

Quick facts

Attribute Details
Year Enacted 2003
Key Enforcement Agencies U.S. Bureau of Customs and Border Protection, U.S. Bureau of Immigration and Customs Enforcement
Potential Penalties Fines, restrictions on imports/exports

Key takeaways

Frequently asked questions

The purpose is to prevent the trade of diamonds that fund violence and conflict.