DCA Ethical Sourcing & Chain of Custody 2 — Questions and Answers
Question 1: What does the term 'chain of custody' mean in the diamond trade?
- The legal ownership history of a diamond mining claim
- A documented trail tracking a diamond from mine to retail sale (Correct answer)
- The sequence of grading reports issued for a single stone
- The contractual chain between cutters and polishers
Correct answer: A documented trail tracking a diamond from mine to retail sale
Chain of custody refers to the documented sequence of possession that tracks a diamond from its point of origin through every stage to the final sale.
Question 2: Which international body administers the Kimberley Process Certification Scheme?
- The United Nations Security Council
- The World Diamond Council
- A tripartite body of governments, industry, and civil society (Correct answer)
- The International Monetary Fund
Correct answer: A tripartite body of governments, industry, and civil society
The KPCS is administered by a tripartite structure comprising governments, the diamond industry (represented by the World Diamond Council), and civil society organizations.
Question 3: A retailer receives diamonds with a warranty statement attached to the invoice. What does this warranty primarily confirm?
- The diamonds are conflict-free to the best of the seller's knowledge (Correct answer)
- The diamonds carry a GIA grading report
- The diamonds are natural and not lab-grown
- The diamonds meet minimum color and clarity standards
Correct answer: The diamonds are conflict-free to the best of the seller's knowledge
The System of Warranties uses invoice declarations to confirm that diamonds are conflict-free based on personal warranties from the seller.
Question 4: Which practice helps a jewelry retailer verify that their diamond suppliers comply with the Kimberley Process?
- Requesting GIA grading reports for every diamond
- Conducting supplier audits and requesting KP compliance documentation (Correct answer)
- Only purchasing from local domestic cutters
- Checking that diamonds are accompanied by an appraisal
Correct answer: Conducting supplier audits and requesting KP compliance documentation
Retailers should audit suppliers and request documentation showing adherence to KPCS requirements as part of due diligence.
Question 5: The term 'conflict diamond' as defined by the Kimberley Process refers specifically to diamonds used to fund:
- Corrupt government officials in producing countries
- Rebel movements seeking to undermine legitimate governments (Correct answer)
- Illegal mining operations regardless of political context
- Any diamond trade that violates labor laws
Correct answer: Rebel movements seeking to undermine legitimate governments
The KP defines conflict diamonds as rough diamonds used by rebel movements to finance wars against legitimate governments.
Question 6: Why do some human rights organizations criticize the Kimberley Process as insufficient?
- It applies only to polished diamonds, not rough stones
- It does not address diamonds linked to government-sponsored violence or labor abuses (Correct answer)
- It requires too much documentation for small miners
- It excludes major diamond-producing nations from membership
Correct answer: It does not address diamonds linked to government-sponsored violence or labor abuses
Critics argue the KP's narrow definition of conflict diamonds ignores abuses committed by state actors and does not cover labor or environmental violations.
Question 7: What is the role of the World Diamond Council's System of Warranties in day-to-day retail transactions?
- It replaces the need for Kimberley Process certificates at the retail level
- It extends KP assurances through the polished supply chain via invoice warranties (Correct answer)
- It certifies individual diamonds with unique serial numbers
- It provides insurance against fraudulent diamond sales
Correct answer: It extends KP assurances through the polished supply chain via invoice warranties
Since KP certificates only cover rough diamonds at national borders, the System of Warranties extends conflict-free assurances through the polished diamond supply chain via invoice declarations.
DCA Ethical Sourcing & Chain of Custody 2
What does the term 'chain of custody' mean in the diamond trade?