Prohibitions and Conditions on the Importation and Exportation of Rough Diamonds, 48918-48922 [2012-20001]

Agencies

• DEPARTMENT OF HOMELAND SECURITY
• U.S. Customs and Border Protection
• DEPARTMENT OF THE TREASURY

[Federal Register Volume 77, Number 158 (Wednesday, August 15, 2012)]
[Proposed Rules]
[Pages 48918-48922]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-20001]


========================================================================
Proposed Rules
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains notices to the public of 
the proposed issuance of rules and regulations. The purpose of these 
notices is to give interested persons an opportunity to participate in 
the rule making prior to the adoption of the final rules.

========================================================================


Federal Register / Vol. 77, No. 158 / Wednesday, August 15, 2012 / 
Proposed Rules

[[Page 48918]]



DEPARTMENT OF HOMELAND SECURITY

U.S. Customs and Border Protection

DEPARTMENT OF THE TREASURY

19 CFR Parts 12, 163, and 178

[Docket No. USCBP-2012-0022]
RIN 1515-AD85


Prohibitions and Conditions on the Importation and Exportation of 
Rough Diamonds

AGENCY: U.S. Customs and Border Protection, Department of Homeland 
Security; Department of the Treasury.

ACTION: Notice of proposed rulemaking.

-----------------------------------------------------------------------

SUMMARY: This document proposes to amend the U.S. Customs and Border 
Protection (CBP) regulations to set forth the prohibitions and 
conditions that are applicable to the importation and exportation of 
rough diamonds pursuant to the Clean Diamond Trade Act, as implemented 
by the President in Executive Order 13312 dated July 29, 2003, and the 
Rough Diamonds Control Regulations (RDCR) issued by the Office of 
Foreign Assets Control of the U.S. Department of the Treasury. In 
addition to restating pertinent provisions of the RDCR, the proposed 
amendments would clarify that any U.S. person exporting from or 
importing into the United States a shipment of rough diamonds must 
retain for a period of at least five years a copy of the Kimberley 
Process Certificate that currently must accompany such shipments and 
make the copy available for inspection when requested by CBP. The 
document also proposes to require formal entry for shipments of rough 
diamonds.

DATES: Comments must be received on or before October 15, 2012.

ADDRESSES: You may submit comments, identified by docket number, by one 
of the following methods:
     Federal eRulemaking Portal: https://www.regulations.gov. 
Follow the instructions for submitting comments via docket number 
USCBP-2012-0022.
     Mail: Trade and Commercial Regulations Branch, Regulations 
and Rulings, Office of International Trade, Customs and Border 
Protection, 799 9th Street NW., 5th Floor, Washington, DC 20229-1179.
    Instructions: All submissions received must include the agency name 
and docket number for this rulemaking. All comments received will be 
posted without change to https://www.regulations.gov, including any 
personal information provided. For detailed instructions on submitting 
comments and additional information on the rulemaking process, see the 
``Public Participation'' heading of the SUPPLEMENTARY INFORMATION 
section of this document.
    Docket: For access to the docket to read background documents or 
comments received, go to https://www.regulations.gov. Submitted comments 
may be inspected during regular business days between the hours of 9 
a.m. and 4:30 p.m. at the Trade and Commercial Regulations Branch, 
Regulations and Rulings, Office of International Trade, Customs and 
Border Protection, 799 9th Street NW., 5th Floor, Washington, DC. 
Arrangements to inspect submitted comments should be made in advance by 
calling Mr. Joseph Clark at (202) 325-0118.

FOR FURTHER INFORMATION CONTACT: Brian Barulich, Regulations and 
Rulings, Office of International Trade, (202) 325-0059.

SUPPLEMENTARY INFORMATION:

Public Participation

    Interested persons are invited to participate in this rulemaking by 
submitting written data, views, or arguments on all aspects of the 
proposed rule. U.S. Customs and Border Protection (CBP) also invites 
comments that relate to the economic, environmental, or federalism 
effects that might result from this proposed rulemaking. Comments that 
will provide the most assistance to CBP will reference a specific 
portion of the proposed rulemaking, explain the reason for any 
recommended change, and include data, information, or authority that 
support such recommended change. See ADDRESSES above for information on 
how to submit comments.

Background

I. Purpose

    In response to the role played by the illicit trade in diamonds in 
fueling conflict and human rights violations in certain areas of the 
world, and to differentiate between the trade in conflict diamonds and 
the trade in legitimate diamonds, the United States and numerous other 
countries announced in the Interlaken Declaration of November 5, 2002, 
the launch of the Kimberley Process Certification Scheme (KPCS) for 
rough diamonds. Under the KPCS, participating countries prohibit the 
importation of rough diamonds from, or the exportation of rough 
diamonds to, a non-participant and require that shipments of rough 
diamonds from or to a participating country be controlled through the 
KPCS. The U.S. Secretary of State is responsible for providing an up-
to-date listing of all participants in the KPCS. The most recent 
listing of participants was published in the Federal Register (73 FR 
80506) on December 31, 2008.

II. Clean Diamond Act and Executive Order

    The Clean Diamond Trade Act (the Act), Public Law 108-19, 117 Stat. 
631 (19 U.S.C. 3901 et seq.), was enacted on April 25, 2003. Section 4 
of the Act requires the President, subject to certain waiver 
authorities, to prohibit the importation into, or exportation from, the 
United States of any rough diamond, from whatever source, that has not 
been controlled through the KPCS. Section 5(a) of the Act authorizes 
the President to issue such proclamations, regulations, licenses, and 
orders, and conduct such investigations, as may be necessary to carry 
out the Act. Section 5(b) of the Act sets forth the general 
recordkeeping requirements that apply to persons seeking to export from 
or import into the United States any rough diamonds. Section 5(b) 
specifically provides that any United States person seeking to export 
from or import into the United States any rough diamonds shall keep a 
full record of, in the form of reports or otherwise, complete 
information relating to any act or transaction to which any prohibition 
imposed under section 4(a) of the Act applies. Section 5(b) further 
provides

[[Page 48919]]

that such person may be required to furnish such information under 
oath, including the production of books of account, records, contracts, 
letters, memoranda, or other papers, in the custody or control of such 
person. In addition to CBP having the authority to apply the customs 
laws to import violations of the Act, section 8 authorizes CBP and U.S. 
Immigration and Customs Enforcement (ICE), as appropriate, to assess 
penalties and enforce the export laws and regulations. See also 15 CFR 
30.70. Therefore, pursuant to section 8, CBP may assess penalties for 
export recordkeeping violations. However, CBP notes that the penalties 
under 19 U.S.C. 1509(a)(1)(A) do not apply to recordkeeping 
requirements for export documents.
    On July 29, 2003, the President issued Executive Order 13312 
(published in the Federal Register (68 FR 45151) on July 31, 2003) to 
implement the Act, effective for rough diamonds imported into, or 
exported from, the United States on or after July 30, 2003.

III. Existing Regulations and Requirements

    CBP notes that persons importing into or exporting from the United 
States a shipment of rough diamonds must comply with the requirements 
of CBP, the Office of Foreign Assets Control (OFAC) of the Department 
of the Treasury (part 592 of title 31 of the Code of Federal 
Regulations (31 CFR part 592)), and the U.S. Census Bureau (15 CFR part 
30). Such persons should also be aware of any relevant Internet 
postings, guidance documents, or Federal Register notices issued by the 
U.S. Department of State. Also, it should be noted that ICE can take 
enforcement action on illegally imported and exported rough diamonds. 
See 19 U.S.C. 3907. Examples of the other government requirements are 
provided below.
    OFAC, acting pursuant to Executive Order 13312 and delegated 
authority, published in the Federal Register (69 FR 56936) the Rough 
Diamonds Control Regulations (RDCR) (31 CFR part 592) as a final rule 
on September 23, 2004.
    Among the requirements set forth in the RDCR is that all shipments 
of rough diamonds imported into, or exported from, the United States 
must be accompanied by an original Kimberley Process Certificate. See 
31 CFR 592.301(a)(1).The RDCR also requires, pursuant to 31 CFR 
592.502, that all importers and exporters of rough diamonds file an 
annual report with the U.S. Department of State regarding their import 
and/or export activity and stockpile information.
    The U.S. Census Bureau issued notices on December 12, 2005, and 
April 3, 2007, respectively entitled ``Notice of Request for Faxed 
Submission of Kimberley Process Certificates'' and ``Revised Notice of 
Request for Faxed Submission of Kimberley Process Certificates,'' 
requiring importers, brokers, and parties involved in the export of 
rough diamonds to immediately fax their Kimberley Process Certificates 
(including voided certificates) to the U.S. Census Bureau upon 
clearance of their shipments into the commerce of the United States by 
CBP or upon export of their shipments from the United States, as 
applicable.

Explanation of Amendments

    CBP is proposing to amend the CBP regulations to set forth the 
prohibitions and conditions that are applicable to the importation 
into, and the exportation from, the United States of rough diamonds 
pursuant to the Act, Executive Order 13312, and the RDCR. This document 
proposes to add a new Sec.  12.152 to 19 CFR part 12 to set forth these 
prohibitions and conditions.
    Because CBP (along with ICE, OFAC, and the U.S. Department of 
State) is involved in the administration and enforcement of the import 
and export requirements relating to rough diamonds, CBP believes that 
it is appropriate and in the interests of the trading community to 
restate in the CBP regulations certain of the entry, export, and 
recordkeeping requirements currently set forth in the RDCR. The RDCR, 
at 31 CFR 592.301, requires any person importing a shipment of rough 
diamonds to have the original Kimberley Process Certificate at the time 
of importation and to present it if demanded by CBP. The RDCR further 
requires the ultimate consignee to retain the original Certificate for 
at least five years from the date of importation and to present it to 
CBP upon demand. See 31 CFR 592.301. CBP is proposing to restate these 
requirements in new Sec.  12.152 and to explicitly incorporate 
recordkeeping requirements that are implicitly included in the RDCR. 
Because any person importing a shipment of rough diamonds is required 
to have the original Certificate at the time of importation (per 31 CFR 
592.301), CBP is proposing to amend the regulations to clarify that the 
Kimberley Process Certificate, which accompanies each shipment, is an 
entry record that must be maintained for a period of at least five 
years from the date of importation. Accordingly, the importer must make 
a copy of the Kimberley Process Certificate available for examination 
at the request of CBP during that time period. CBP also proposes to 
specifically add the Kimberley Process Certificate in its Interim 
(a)(1)(A) list in section IV of the Appendix to part 163 of title 19 of 
the Code of Federal Regulations (19 CFR). See 19 CFR 163.1(f), 163.3 
and 163.4.
    In accordance with section 5(b) of the Act, CBP is also proposing 
to require any U.S. persons exporting from the United States a shipment 
of rough diamonds to retain a copy of the Kimberley Process Certificate 
accompanying each shipment for a period of at least five years from the 
date of exportation and make the copy available for examination at the 
request of CBP. See 19 U.S.C. 3904(b).
    CBP believes that these recordkeeping requirements will assist it 
in verifying whether importations of rough diamonds are properly 
controlled by the KPCS. The legal authority for these proposed 
requirements are discussed in further detail in the following 
discussion of each of the paragraphs in proposed new Sec.  12.152, and 
new Sec.  163.2(b), and the amendments to the Interim (a)(1)(A) list in 
section IV of the Appendix to part 163.
Paragraph (a)
    Paragraph (a) provides a brief summary of the KPCS, the Act, 
Executive Order 13312, and the RDCR. Paragraph (a) also indicates that 
persons importing into, or exporting from, the United States a shipment 
of rough diamonds must comply with the requirements of CBP, OFAC, and 
the U.S. Census Bureau.
Paragraph (b)
    Paragraph (b) sets forth certain definitions of terms derived from 
19 U.S.C. 3902, section 3 of the Act, Annex I of the Kimberley Process 
Certification Scheme, and subpart C of the RDCR (subpart C of 31 CFR 
part 592).
Paragraph (c)
    Paragraph (c) reflects the requirement in Sec.  592.301 of the RDCR 
(31 CFR 592.301) that a shipment of rough diamonds imported into, or 
exported from, the United States, must be accompanied by an original 
Kimberley Process Certificate.
Paragraph (d)
    Pursuant to the authority provided in 19 U.S.C. 1484 and 
1498(a)(1)(B), paragraph (d) requires formal entry when importing a 
shipment of rough diamonds.

[[Page 48920]]

Paragraph (e)
    Pursuant to the authority provided in 19 U.S.C. 1484(a)(1)(A), 
paragraph (e) requires brokers, importers, and filers making entry of a 
shipment of rough diamonds into the United States to either submit 
through CBP's Automated Broker Interface (ABI) system the unique 
identifying number of the Kimberley Process Certificate accompanying 
the shipment or, for non-ABI entries, indicate the certificate number 
on the CBP Form 7501, Entry Summary, on each applicable line item.
Paragraph (f)
    Paragraph (f)(1) reflects the requirement in 31 CFR 592.301 that 
the ultimate consignee of a shipment of rough diamonds imported into 
the United States must retain the original Kimberley Process 
Certificate for a period of at least five years from the date of 
importation and must present the certificate to CBP upon request.
    Paragraph (f)(2) reflects the requirement that the U.S. person 
importing into the United States a shipment of rough diamonds must 
retain a copy of the Kimberley Process Certificate for a period of at 
least five years from the date of importation and present the copy to 
CBP upon request, pursuant to section 5(b) of the Act as well as Sec.  
163.4, CBP regulations (19 CFR 163.4), which provides that (with 
certain exceptions not applicable here) any record required to be made, 
kept, and rendered for examination and inspection by CBP under Sec.  
163.2 or any other provision of this chapter must be kept for five 
years from the date of entry, if the record relates to an entry, or 
five years from the date of the activity which required creation of the 
record. Section 163.2 identifies importers as persons who must maintain 
records and render those records for examination by CBP. The Kimberley 
Process Certificate is a record required for the entry of merchandise, 
within the meaning of 19 U.S.C. 1509(a)(1)(A) and 19 CFR 163.1(a).
    Similarly, paragraph (f)(3) requires any U.S. person exporting a 
shipment of rough diamonds from the United States to retain a copy of 
the Kimberley Process Certificate for a period of at least five years 
from the date of exportation and to present the copy to CBP upon 
request. This provision is being proposed in accordance with section 
5(b) of the Act.
    The requirements set forth in paragraphs (f)(2) and (3) are further 
supported by Sec. Sec.  501.601 and 592.501 of the OFAC regulations (31 
CFR 501.601 and 592.501), which provide, in pertinent part, that every 
person engaging in any transaction subject to the RDCR and other 
provisions of 31 CFR chapter V shall keep a full and accurate record of 
each such transaction engaged in, and such record shall be available 
for examination for at least five years after the date of such 
transaction.
    In addition, CBP is proposing to amend part 163 by adding to Sec.  
163.2(c) a paragraph stating that any U.S. person exporting from the 
United States any rough diamonds must retain a copy of the Kimberley 
Process Certificate accompanying each shipment for a period of at least 
five years from the date of exportation. Section 163.2(c) would also 
state that failure to retain such records for at least five years may 
subject the exporter to penalties under 19 U.S.C. 3907.
    CBP is also proposing to amend the Interim (a)(1)(A) list in 
Section IV of the Appendix to part 163 of 19 CFR to add the Kimberley 
Process Certificate to the list of documents that are required for the 
entry of special categories of merchandise. Finally, this document 
proposes to amend the list of control numbers assigned to information 
collections by the Office of Management and Budget (OMB) (pursuant to 
the Paperwork Reduction Act), which are set forth in 19 CFR 178.2, to 
add the information collections used by CBP to determine whether 
importations of rough diamonds are properly controlled by the KPCS.

Executive Orders 12866 and 13563

    Executive Orders 12866 and 13563 direct agencies to assess the 
costs and benefits of available regulatory alternatives and, if 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health and safety effects, distributive impacts, and equity). Executive 
Order 13563 emphasizes the importance of quantifying both costs and 
benefits, of reducing costs, of harmonizing rules, and of promoting 
flexibility. This rule is not a ``significant regulatory action,'' 
under section 3(f) of Executive Order 12866. Accordingly, OMB has not 
reviewed this regulation.
    The proposed rule seeks to increase CBP's ability to verify whether 
importations or exportations of rough diamonds are in compliance with 
the KPCS. OFAC published the RDCR (31 CFR part 592) requiring the 
ultimate consignee to retain the original of the Kimberley Process 
Certificate. The proposed amendments clarify that any U.S. person 
exporting from or importing into the United States a shipment of rough 
diamonds must retain a copy of the Kimberley Process Certificate for a 
period of five years and make this copy available for inspection at the 
request of CBP or face penalties pursuant to 19 U.S.C. 1509 or 3907. 
CBP believes the costs of retaining a copy of the Kimberley Process 
Certificate for five years and producing the copy to CBP upon request 
to be negligible.

Regulatory Flexibility Act

    This section examines the impact of the rule on small entities as 
required by the Regulatory Flexibility Act (5 U.S.C. 601 et seq.), as 
amended by the Small Business Regulatory Enforcement and Fairness Act 
of 1996. A small entity may be a small business (defined as any 
independently owned and operated business not dominant in its field 
that qualifies as a small business per the Small Business Act); a small 
not-for-profit organization; or a small governmental jurisdiction 
(locality with fewer than 50,000 people).
    The proposed rule seeks to increase CBP's ability to verify whether 
importations or exportations of rough diamonds are in compliance with 
the KPCS. OFAC published the RDCR (31 CFR part 592) requiring the 
ultimate consignee to retain the original of the Kimberley Process 
Certificate, but not requiring this of the importer or the exporter. 
The proposed amendments clarify that any U.S. person exporting from or 
importing into the United States a shipment of rough diamonds must 
retain a copy of the Kimberley Process Certificate for a period of five 
years and make this copy available for inspection at the request of CBP 
or face penalties pursuant to 19 U.S.C. 1509 or 3907. Given that this 
rule will impose a penalty only for noncompliance, it is not feasible 
to estimate the number of small entities which could be affected by 
this rule. CBP does not believe any additional professional expertise 
will be required to adhere to this requirement, as the Kimberley 
Process Certificate will only need to be stored and presented for 
examination upon request of CBP. CBP believes the costs of retaining a 
copy of the Kimberley Process Certificate for five years and providing 
the copy to CBP upon request to be negligible. Due to these low 
compliance costs, CBP subject matter experts believe this regulation 
will neither increase non-compliance nor result in a substantial number 
of small entities receiving penalties. CBP did not consider 
alternatives to the proposed rule for small entities because it does 
not impose any significant additional operational or labor costs on 
small

[[Page 48921]]

entities for compliance. CBP is unaware of any other federal rules 
which conflict with the requirements of the proposed rule.
    Because the penalty for noncompliance may be greater than $500 (in 
1980 dollars), constituting a significant impact for a small entity, 
the economic impact of noncompliance with this would be considered 
significant. However, as discussed above CBP subject matter experts do 
not believe this rule will increase noncompliance with the KPCS for 
small entities. Thus, CBP does not believe this rule will have a 
significant impact on a substantial number of small entities. CBP 
welcomes any comments regarding this assessment. If CBP does not 
receive any comments contradicting this finding, CBP will certify that 
this rule will not have a significant economic impact on a substantial 
number of small entities at the final rule stage.

Paperwork Reduction Act

    Under the Paperwork Reduction Act, an agency may not conduct or 
sponsor, and an individual is not required to respond to, a collection 
of information unless it displays a valid OMB control number. The 
collections of information contained in these regulations are provided 
for by OMB control number 1505-0198, to cover the requirements 
concerning CBP Form 7501, and by OMB control number 1651-0076, to cover 
the recordkeeping requirement.

Signing Authority

    This document is being issued in accordance with Sec.  0.1(a)(1) of 
the CBP Regulations (19 CFR 0.1(a)(1)) pertaining to the authority of 
the Secretary of the Treasury (or his/her delegate) to approve 
regulations related to certain customs revenue functions.

List of Subjects

19 CFR Part 12

    Customs duties and inspection, Economic sanctions, Entry of 
merchandise, Foreign assets control, Exports, Imports, Prohibited 
merchandise, Reporting and recordkeeping requirements, Restricted 
merchandise, Sanctions.

19 CFR Part 163

    Administrative practice and procedure, Customs duties and 
inspection, Exports, Imports, Penalties, Reporting and recordkeeping 
requirements.

19 CFR Part 178

    Administrative practice and procedure, Imports, Reporting and 
recordkeeping requirement.

Proposed Amendments to the CBP Regulations

    For the reasons set forth above, parts 12, 163, and 178 of title 19 
of the Code of Federal Regulations (19 CFR parts 12, 163, and 178) are 
proposed to be amended as set forth below.

PART 12--SPECIAL CLASSES OF MERCHANDISE

    1. The general authority citation for part 12, CBP regulations, 
continues to read, and a new specific authority citation for Sec.  
12.152 is added to read, as follows:

    Authority:  5 U.S.C. 301; 19 U.S.C. 66, 1202 (General Note 3(i), 
Harmonized Tariff Schedule of the United States (HTSUS)), 1624.
* * * * *
    Section 12.152 also issued under 19 U.S.C. 1484, 1498; the Clean 
Diamond Trade Act (Pub. L. 108-19, 117 Stat. 631 (19 U.S.C. 3901 et 
seq.)); Executive Order 13312 dated July 29, 2003.

    2. In part 12, a new Sec.  12.152 is added to read as follows:


Sec.  12.152  Prohibitions and conditions on the importation and 
exportation of rough diamonds.

    (a) General. The Clean Diamond Trade Act (Pub. L. 108-19) requires 
the President, subject to certain waiver authorities, to prohibit the 
importation into, or exportation from, the United States, of any rough 
diamond, from whatever source, that has not been controlled through the 
Kimberley Process Certification Scheme. By Executive Order 13312 dated 
July 29, 2003, published in the Federal Register (68 FR 45151) on July 
31, 2003, the President implemented the Clean Diamond Trade Act, 
effective for rough diamonds imported into, or exported from, the 
United States on or after July 30, 2003. Pursuant to Executive Order 
13312, the Office of Foreign Assets Control (OFAC), Department of the 
Treasury, promulgated the Rough Diamonds Control Regulations (see 31 
CFR part 592). Any persons importing into or exporting from the United 
States a shipment of rough diamonds must comply with the requirements 
of CBP, OFAC, and the U.S. Census Bureau (15 CFR part 30).
    (b) Definitions. For purposes of this section, the following 
definitions apply:
    (1) Controlled through the Kimberley Process Certification Scheme. 
``Controlled through the Kimberley Process Certification Scheme'' means 
meeting the requirements set forth in 31 CFR 592.301;
    (2) Kimberley Process Certificate. ``Kimberley Process 
Certificate'' means a forgery resistant document that meets the minimum 
requirements listed in Annex I of the Kimberley Process Certification 
Scheme, as well as the requirements listed in 31 CFR 592.307;
    (3) Rough diamond. ``Rough diamond'' means any diamond that is 
unworked or simply sawn, cleaved, or bruted and classifiable under 
subheading 7102.10, 7102.21, or 7102.31 of the Harmonized Tariff 
Schedule of the United States;
    (4) United States. ``United States'', when used in the geographic 
sense, means the several states, the District of Columbia, and any 
commonwealth, territory, or possession of the United States; and
    (5) United States person. ``United States person'' means:
    (i) Any United States citizen or any alien admitted for permanent 
residence into the United States;
    (ii) Any entity organized under the laws of the United States or 
any jurisdiction within the United States (including its foreign 
branches); and
    (iii) Any person in the United States.
    (c) Original Kimberley Process Certificate. A shipment of rough 
diamonds imported into, or exported from, the United States must be 
accompanied by an original Kimberley Process Certificate.
    (d) Formal Entry Required. Formal entry is required when importing 
a shipment of rough diamonds. Formal entry procedures are prescribed in 
part 142 of this chapter.
    (e) Report of Kimberley Process Certificate Unique Identifying 
Number. Customs brokers, importers, and filers making entry of a 
shipment of rough diamonds must either submit through CBP's Automated 
Broker Interface (ABI) system the unique identifying number of the 
Kimberley Process Certificate accompanying the shipment or, for non-ABI 
entries, indicate the certificate number on the CBP Form 7501, Entry 
Summary, on each applicable line item.
    (f) Maintenance of Kimberley Process Certificate. (1) Ultimate 
consignee. The ultimate consignee identified on the CBP Form 7501, 
Entry Summary, or its electronic equivalent filed with CBP in 
connection with an importation of rough diamonds must retain the 
original Kimberley Process Certificate for a period of at least five 
years from the date of importation and must make the certificate 
available for examination at the request of CBP.
    (2) Importer. The U.S. person that importsinto the United States a 
shipment of rough diamonds must retain a copy of the Kimberley Process 
Certificate accompanying the shipment for a period of at least five 
years from

[[Page 48922]]

the date of importation and must make the copy available for 
examination at the request of CBP.
    (3) Exporter. The U.S. person that exports from the United States a 
shipment of rough diamonds must retain a copy of the Kimberley Process 
Certificate accompanying the shipment for a period of at least five 
years from the date of exportation and must make the copy available for 
examination at the request of CBP.

PART 163--RECORDKEEPING

    3. The specific authority citation for part 163 is revised and the 
general authority citation continues to read as follows:

    Authority:  5 U.S.C. 301; 19 U.S.C. 66, 1484, 1508, 1509, 1510, 
1624.


Section 163.2 also issued under 19 U.S.C. 3904, 3907.* * * * *
    4. Section 163.2(c) is revised to read as follows:


Sec.  163.2  Persons required to maintain records.

* * * * *
    (c) Recordkeeping required for certain exporters. (1) NAFTA. Any 
person who exports goods to Canada or Mexico for which a Certificate of 
Origin was completed and signed pursuant to the North American Free 
Trade Agreement must also maintain records in accordance with part 181 
of this chapter.
    (2) Kimberley Process Certification Scheme. Any U.S. person (see 
definition in Sec.  12.152(b)(5)) who exports from the United States 
any rough diamonds must retain a copy of the Kimberley Process 
Certificate accompanying each shipment for a period of at least five 
years from the date of exportation. See 19 CFR 12.152(f)(3). Any U.S. 
person who exports from the United States any rough diamonds and does 
not keep records in this time frame may be subject to penalties under 
19 U.S.C. 3907.
    5. The Appendix to part 163 is amended by adding a new listing 
under Sec.  IV in numerical order to read as follows:

Appendix to Part 163--Interim (a)(1)(A) List

* * * * *
    IV. * * *


Sec.  12.152  Kimberley Process Certificate for rough diamonds.

* * * * *

PART 178--APPROVAL OF INFORMATION COLLECTION REQUIREMENTS

    6. The authority citation for part 178 continues to read as 
follows:

    Authority: 5 U.S.C. 301; 19 U.S.C. 1624, 44 U.S.C. 3501 et seq.

    7. Section 178.2 is amended by adding a new listing to the table in 
numerical order to read as follows:


Sec.  178.2  Listing of OMB control numbers.

------------------------------------------------------------------------
        19 CFR Section                Description        OMB Control No.
------------------------------------------------------------------------
 
                              * * * * * * *
Sec.   12.152.................  Certificate and         1505-0198 and
                                 recordkeeping           1651-0076.
                                 requirements for the
                                 entry of rough
                                 diamonds.
 
                              * * * * * * *
------------------------------------------------------------------------


David V. Aguilar,
Acting Commissioner, U.S. Customs and Border Protection.
    Approved: August 10, 2012,
Timothy E. Skud,
Deputy Assistant Secretary of the Treasury,
[FR Doc. 2012-20001 Filed 8-14-12; 8:45 am]
BILLING CODE 9111-14-P