GIA Ethical Sourcing & Chain of Custody 2 — Questions and Answers
Question 1: Under the Kimberley Process Certification Scheme, which entity is responsible for issuing the KP certificate that accompanies a rough diamond shipment?
- The importing country's customs authority
- The exporting country's KP authority (Correct answer)
- The World Diamond Council
- The United Nations trade office
Correct answer: The exporting country's KP authority
The exporting country's designated KP authority issues the Kimberley Process certificate that must accompany each rough diamond shipment.
Question 2: A diamond retailer receives stones described as 'recycled' or 'estate' diamonds. Which chain-of-custody concern is MOST relevant in this scenario?
- Verifying carat weight accuracy
- Confirming the diamonds were not KP-conflict stones recirculated into the market (Correct answer)
- Ensuring laser inscription numbers are present
- Checking whether the diamonds were heat-treated
Correct answer: Confirming the diamonds were not KP-conflict stones recirculated into the market
Recycled diamonds can re-enter supply chains without documentation, raising the risk that previously undocumented conflict diamonds are laundered through estate sales.
Question 3: The Responsible Jewellery Council (RJC) Code of Practices requires members to conduct due diligence on their suppliers. What is the PRIMARY purpose of this supplier due diligence?
- To confirm suppliers offer the lowest market price
- To identify and mitigate risks of human rights abuses and environmental harm in the supply chain (Correct answer)
- To ensure suppliers are located in low-tax jurisdictions
- To verify that suppliers hold GIA grading reports for all stones
Correct answer: To identify and mitigate risks of human rights abuses and environmental harm in the supply chain
RJC supplier due diligence is designed to identify human rights, labor, environmental, and anti-corruption risks throughout the jewelry supply chain.
Question 4: Which OECD guidance document is most commonly referenced by jewelry industry companies when building their conflict minerals due diligence frameworks?
- OECD Guidelines for Multinational Enterprises, Annex I
- OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas (Correct answer)
- OECD Anti-Bribery Convention implementation guide
- OECD Environmental Compliance Checklist for Extractive Industries
Correct answer: OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas
The OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas is the primary international framework for mineral supply chain due diligence.
Question 5: A diamond manufacturer in a cutting center receives a parcel from a source country but the accompanying KP certificate has an expired validity date. What is the correct action?
- Accept the parcel because the diamonds are already cut and polished
- Reject or quarantine the shipment and notify the appropriate KP authority (Correct answer)
- Request only a duplicate invoice to substitute for the certificate
- Accept the parcel if the manufacturer personally vouches for the supplier
Correct answer: Reject or quarantine the shipment and notify the appropriate KP authority
An expired KP certificate invalidates the chain-of-custody documentation, and the shipment must be rejected or quarantined until proper certification is obtained.
Question 6: Which term describes the practice of mixing certified conflict-free rough diamonds with undocumented stones before sale to obscure the true origin?
- Diamond blending
- Laundering
- Aggregation fraud
- Commingling (Correct answer)
Correct answer: Commingling
Commingling refers to mixing documented conflict-free diamonds with undocumented or conflict diamonds to conceal the origin of non-compliant stones.
Question 7: Canada Mark diamonds carry a warranty that they are sourced specifically from which mines?
- All Canadian-registered mining operations
- Approved mines in Canada's Northwest Territories and Nunavut (Correct answer)
- Any mine audited by the Canadian government
- Mines certified by the Canadian Jewellers Association
Correct answer: Approved mines in Canada's Northwest Territories and Nunavut
Canada Mark certifies diamonds exclusively from approved mines in Canada's Northwest Territories and Nunavut, tracked through a strict chain-of-custody system.
GIA Ethical Sourcing & Chain of Custody 2
Under the Kimberley Process Certification Scheme, which entity is responsible for issuing the KP certificate that accompanies a rough diamond shipment?