Why in News?

• India will Chair Kimberley Process Certification Scheme (KPCS) from 1st January 2018. It was was handed Chairmanship by the European Union during KPCS Plenary 2018, which was held in Brussels, Belgium.

Kimberley Process:

• The Kimberley Process Certification Scheme (KPCS) is the process established in 2000 to prevent conflict diamonds from entering the mainstream rough diamond market.
• It is joint initiative of governments, industry and civil societies to stem flow of ‘conflict diamonds’, rough diamonds used by rebel groups to finance wars against legitimate governments. It is also described in United Nations Security Council (UNSC) resolutions.
• It was ruled by UNGA Resolution 55/56 following recommendations in the Fowler Report.
• The process was set up to ensure that diamond purchases were not financing violence by rebel movements and their allies seeking to undermine legitimate governments.

India and KPCS:

• India is the founding member of KPCS and is actively involved in KP activities to ensure that almost 99% of the diamond trade in the world is conflict free.
• India is committed to maintain KP as an efficient and effective process in order to ensure the conflict diamond free status.
• India is at the forefront in addressing the issue of differentiation between Natural Diamonds and Lab Grown Diamonds and ensure responsible business in this area.
• India chaired the Ad hoc Committee on Review and Reform (AHCRR).
• In India, the scheme is administered through Department of Commerce under aegis of the Union Commerce and Industry Ministry.

Conflict diamonds:

• Conflict diamonds or blood diamonds are the rough diamonds used by rebel movements in the third world countries especially in Africa to finance (civil) wars with an aim to topple legitimate governments.
• The KPCS completely bans import and export of rough diamonds without certifications.