UAE International Trade / Sanctions LawFederal Law No (13) of 2004 Regarding Supervision of Import / Export and Transit of Rough Diamonds

Article (1) In application of the provisions of this law, and unless otherwise requires, the following words and expressions shall have the meanings cited against them below: Country : The United Arab Emirates. Ministry : The Ministry of Economy and Commerce. Concerned Authority : The Customs Authority in the Concerned Emirate. Kimberley : The International Certification Scheme, Concerning International

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Union Law No (13) of 2004 Regarding Supervision of Import / Export and Transit of Rough Diamonds 2 Process Trading of Rough Diamonds. Concerned Party of Participant : Ministry of Economy and Commerce. Diamond : The natural mineral consisting of crystallized carbon within the isometric system, characterized by relative resistance to scratch (10) and a specific gravity of about (3.52) and refractive index of (2.42). Rough Diamonds : Un-worked or simply sawn or split or trimmed diamonds, and fall under the Relevant Harmonized Commodity Description and Coding System Nos. (7102-10), (7102-21), (7102-31) mentioned in Kimberley process. Conflict Diamonds : Rough diamonds used by rebel movements or their allies to finance conflict aimed at destabilizing legitimate governments, per relevant applied International Security Council resolutions or any other resolutions the Council may adopt in the future, and in accordance with the United Nations General Assembly Resolution No (55/56) or any similar resolution the General Assembly may adopt in the future. Country of Origin : The country where a shipment of rough diamonds has been mined or extracted. Country of Provenance : The last participant country from where a shipment of rough diamonds was exported) as recorded on import documentation. Export : Taking out of any part of the geographic territory of the country. Exporting Authority : The authority designated by the participant from whose territory the rough diamond shipment shall leave and which is authorized to validate the Kimberley process certificate. Import : Bringing into any part of the geographic territory of the country. Importing Authority : The authority or authorities designated by the participant into whose territory the rough diamond shipment shall be imported,

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Union Law No (13) of 2004 Regarding Supervision of Import / Export and Transit of Rough Diamonds 3 and who completes all import procedures, particularly the verification of the attached Kimberley certificate. Country Certificate : Kimberly process certificate issued by the concerned authority in the country. Kimberley Process Certificate : A document resistant to abuse and forgery, with a special form which indicates that the rough diamond shipment meets the Kimberley process requirements. Parcel : One or more parcel of diamonds which are packed together and not individually. Participant : Any country or an international organization, or an un-independent region linked to a country, or a customs region to which the Kimberley Process applies. Shipment : One or more parcels which are physically imported or exported. Transit : The physical passage across the territory of the participant or non-participant, with or without transshipment or storing or changing means of transportation or otherwise, whereby such passage is only part of a complete journey, starting and ending beyond the frontiers of the participant or non-participant. Inspector : The person assigned by the concerned party and relevant authority to act as a commissioner with regard to crimes committed by violating the provisions of this law, bylaws and decisions issued for the implementation of its provisions. Chapter Two Powers of the Council of Ministers and the Minister

Article (2) Within the framework of the provisions of this law, the Minister is empowered to carry out the following :- 1. Amending the list containing the participants in Kimberley process.

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Union Law No (13) of 2004 Regarding Supervision of Import / Export and Transit of Rough Diamonds 4 2. Publishing the information contained in the applications submitted to obtain the country certificate or the information gathered during inspection, per the provisions of this law. 3. Gathering, classifying and utilizing statistics, relating to country certificates and Kimberley certificates which are attached to diamond import into the country, for the purpose of analysis and study, or to exchange with other participants and to publish the number of those certificates. 4. Identifying the prepared method or form to submit applications to obtain the certificate, authenticate it and identify its contents and its validity. 5. Identifying the method, form and data which must be contained in the application submitted to the concerned authority, per the provisions of this law. 6. Establishing the conditions to be met by containers used in import/export of rough diamonds. 7. Identifying the records which must be maintained by individuals who import/export rough, diamonds.

Article (10) 1. If the concerned authority discovered the inaccuracy or unconformity of the cargo contents with Kimberley certificate, attached to the rough diamonds, the said authority must carry out the following: a- To confiscate the cargo immediately. b- To send the relevant information to the concerned party of the participant, which issued

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Union Law No (13) of 2004 Regarding Supervision of Import / Export and Transit of Rough Diamonds 6 or authenticated the confiscated cargo certificate. 2. If the matter is the result, of un-intended mistake, the concerned authority, in consultation with the concerned party of the participant which issued or authenticated the certificate, may correct the mistake and continue with the checking procedures. 3. The concerned authority) which attached the cargo in other cases) must return the cargo to the concerned party in the country of origin) if it can be identified) otherwise the said authority must confiscate the cargo) auction it and transfer the proceeds) after deducting the sale cost) to the concerned party of the participant) to be used in enhancing the authentication system) contained in Kimberley process.

Article (13) 1. The concerned authority, while authenticating the country certificate, must take the following into consideration: a- The exporter must submit concrete evidence that the rough diamonds, he intends to export, have been imported per the terms and conditions laid in this law, or that the diamonds were in the country prior to the issuance of this law.

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Union Law No (13) of 2004 Regarding Supervision of Import / Export and Transit of Rough Diamonds 7 b- The data contained in the certificate are accurate and that the rough diamonds shall be exported to the participant in Kimberley process. c- The assigned charges for issuing the certificate must be collected. 2. The concerned authority must not authenticate the certificate except after sealing the container which contains the rough diamonds. 3. The concerned authority shall hand over the authenticated certificate to the exporter.

Article (15) The concerned authority may consider the statement signed by the exporter as concrete evidence that the import of rough diamonds into the country is legal, if the exporter is a member in an organization which represents rough diamond traders, and which has contributed to establishing the system of warrantees and the self-regulation of the industry, for the purpose of executing Kimberley process, and it (the organization) is listed in the list prepared by the concerned party of the participant for this purpose. This statement must also contain the information contained in the invoice, per the terms and provisions mentioned in the bylaws and decisions issued in executing the provisions of this law.

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Union Law No (13) of 2004 Regarding Supervision of Import / Export and Transit of Rough Diamonds 8

Article (22) 1. Taking into account the provision of item (3) of this article, it is not allowed to continue attaching the rough diamonds and other related items, after the concerned authority decides that the diamonds and these items do not violate the provisions of this law. 2. It is not allowed to sue the owner or beneficiary (of rough diamonds), per the provisions of this law after the passage of (3) months from the date of attachment of the rough diamonds or other related items. The concerned authority, in this case, must return the diamonds or those items to the owner or the beneficiary at the time of attachment. 3. If a lawsuit is submitted against the owner or the beneficiary, per the provisions of this law, it is then allowed to extend the attachment period of the rough diamonds or other related items until the completion of the court case. The owner or beneficiary may then approach the general prosecution or the court, requesting lifting of attachment. 4. If the court finds the accused innocent, it may order that the attached rough diamonds or other related items be returned to the owner or beneficiary at the time of attachment. 5. If the court finds the accused guilty, it may, in addition to any penalty it enforces per the provisions of this law, order the attachment of rough diamonds or other related items.

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Union Law No (13) of 2004 Regarding Supervision of Import / Export and Transit of Rough Diamonds 10 Chapter Eight Penalties

Article (23) 1. Without breaching any other stricter penalty, per any other law, a punishment by imprisonment for a period not exceeding (6) months, and a fine not exceeding One Hundred Thousand UAE Dirhams (AED 100,000), or either of the two punishments, shall apply to whoever brings or attempts to bring into the country or take outside the country, or attempts to take out of the country, by violating the provisions of this law, for the purpose of smuggling it, in addition to confiscating the rough diamonds and instrumentalities thereby and other items used in smuggling or are intended to be used thereof, 2. It is not allowed to confiscate ships, whose load exceeds two hundred tons, or public transportation means and airplanes. 3. The owner of the rough diamonds and attached items, or the person with whom the items are found, or the owner of transportation means shall be notified of the confiscation order. Whoever is concerned may appeal the order in front of the concerned court within thirty (30) days from the date of his formal notification thereof.

Article (24) Without breaching any other stricter penalty, per any other law, a punishment by imprisonment for a period not exceeding six (6) months and a fine not exceeding one hundred thousand UAE dirhams (AED 100.000), or either of the two punishments, shall apply to whoever :- 1. Gave verbal or written or electronic incorrect information, regarding any data or other document for the purpose of obtaining a country certificate to export rough diamonds, while knowing that the information is incorrect. 2. Submitted to the concerned authority, or used, while applying to obtain the country certificate, any statement or other document, which contains incorrect information, while aware of its incorrectness. 3. Concealed any basic/important information with regard to any of the procedures, related

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Union Law No (13) of 2004 Regarding Supervision of Import / Export and Transit of Rough Diamonds 11 to the country certificate.

Article (29) The commissioner is particularly empowered to carry out the following :- 1. To review the papers, scripts, records, correspondence, contracts and accounts of whichever nature, if they or related directly or indirectly to import and export of rough diamonds to and from the country, including commercial books, banking documents and computer systems. The commissioner may seize them when they are related to a crime committed by violating the provisions of this law. 2. To enter and inspect any place or means of transportation -except homes - when the commissioner has reasons to believe that the rough diamonds, record, accounting book or document to which this law applies, is available at that place or instrumentality. 3. To open any parcel or container when he has reasons to believe that they contain anything stated in the previous item (2 above). 4. To examine rough diamonds, or other related items. 5. To process and carry out analysis of rough diamonds, without affecting its value. 6. To seize items related to rough diamond crimes, as well as means of transportation used in committing such crimes, except for public transportation means, airplanes and ships, whose registered loads exceed two hundred tons. 7. To seek help from the general authority. Chapter Ten General Provisions