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Beneficiation in the Diamond Office

Beneficiation for Beginners – Part 3

This third part of the introduction to beneficiation looks at the import and export of goods through a diamond office. 

The bureaucracy controlling the flow of diamonds is one of those features of the diamond industry and is handled by a body commonly referred to as a Diamond Office, although it can carry other names as well.

An efficient Diamond Office lubricates and controls the industry.  An inefficient one dissuades manufacturers and inhibits trade development.  When trying to create a local diamond industry, be it production, trading or both, governments have to achieve the balance between controlling the industry and collecting data on the one hand, and providing a quick, efficient and helpful service to diamond businesses.

One of the desires to tightly control the flows of rough and polished diamonds in and out of a country is to prevent companies from overstating or understating either the quantity or the value of the diamonds shipped.  In some countries, the Diamond Office which issues and monitors the Kimberley Process certificates for rough shipments.

From a review of diamond offices around the world, the following is a list of the characteristics of an ideal Diamond Office:

      As time is money, it is critical that imports and exports are cleared within minutes.  A 24 hour turnaround is harmful and unacceptable.

      The Kimberley Process certificates should be issues at the Diamond Office ‘on-demand’ so that exports of rough or partially manufactured goods can be shipped expediently.

      Ensure that there are enough staff in the diamond office, especially just before and after weekends and public holidays.

      Use random and stratified sampling for inspections of goods, especially of polished imports, and not item by item inspections as happens in Antwerp.

      Use computerised models to identify deviant pricing of goods.

      Allow for a tolerance deviation of ± 0.1% in carats of rough shipments.

      Technological and infrastructural facilities for companies like Brinks and Malak-Amit to process goods quickly.

      Clear processes for individuals to import and export diamonds personally, even outside normal Diamond Office hours.

      Quick procedures for correcting errors in quantities and values.

      Specially trained police and customs officials where illegal activities have been detected,

In some diamond trading centres, shipments both in an out can be processed within a few hours, even allowing issuing the KP certificates.  In other centres, it can take 24 hours or more to issue a KP certificate or obtain an export permit.

Lastly, a professionally run Diamond Office must operate with integrity and impartiality. 

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Copyright © 2008 Diamond Finance - Last modified: 11/23/08