American Industry Bodies Developed a New Protocol to Control Diamond Supplies

American jewellery industry associations have announced development of a new Diamond Source Warranty Protocol aimed at expansion of control over sources of diamond supplies and enabling industry players to define and exclude doubtful and questionable sources of rough and polished supplies.
Jewelers of America (JA), the Diamond Manufacturers & Importers Association of America (DMIA), the Jewelers Vigilance Committee (JVC) and other leading jewelry associations and companies have worked together to develop the Diamond Source Warranty Protocol. The new Protocol is a voluntary approach to inventory management, designed to help individual businesses begin to work toward a higher level of assurance by excluding diamonds from questionable sources, as determined by them. Meanwhile Kimberley Process is seen to remain the fundamental for exclusion of conflict diamonds from the pipeline.
"There is increased pressure in certain markets, including the United States - from the public, human rights groups and government - to bring greater transparency and accountability to the supply chains of jewelry and other products," says Matthew A. Runci, President and CEO of Jewelers of America. "The new Diamond Source Warranty Protocol is designed to be an effective tool to help businesses manage these issues and challenges in the context of their relationships with business partners and stakeholders." The Diamond Source Warranty Protocol will work alongside the Kimberley Process (KP), which remains the foundation for the exclusion of conflict diamonds from the worldwide marketplace. Industry participants may elect to incorporate the Protocol into their contractual arrangements with vendors.
"The Kimberley Process has demonstrated its effectiveness in dealing with issues around conflict diamonds. It is unreasonable, however, to expect it to be a panacea for all issues and challenges throughout the diamond supply chain. As an industry, we share the legitimate concerns of consumers and governments and have a responsibility to work closely with them to develop solutions that are practical," says Ronald Friedman, President, DMIA. "While governments participating in the Kimberley Process continue to work to improve it, businesses that feel the need for additional assurance can now use the Diamond Source Warranty Protocol and begin to work with their suppliers to obtain that assurance."
Subject to the Protocol, these are jewellery companies which are charged with the function of defining questionable sources of diamonds (“Subject Sources”), they may treat certain countries or certain suppliers as questionable even if diamond dealing with them is permitted by KP.
Work on the Protocol began in 2011. Several retailers provided significant input in the belief that the industry must work together to devise practical approaches that address the need for greater transparency and accountability in the diamond jewelry supply chain.
At present time the new initiative is subject to industry-wide discussions at the World Diamond Congress in Mumbai.

Olga Patseva, Editor in Chief of the American Bureau, Rough&Polished