State Administration for the Inspection of Import and Export Commodities has established offices in over 20 customs checkpoints and in the Shanghai Diamond Exchange to curb trade in the so-called "blood diamonds."

Blood diamonds, defined as rough diamonds obtained by using or threatening to use force, are exploited by many rebel movements to finance their activities, mainly in Africa. Under the Kimberley Process, agreed to by 39 countries and regions, any rough diamond entering or leaving a country has to be transported in a sealed container and accompanied by a certificate of origin.

The new system is intended to identify a diamond's origin when it passes through customs.

According to the European Commission, blood diamonds represent 2-4 percent of global diamond production.

The process was launched this month, but participating countries and regions have been given until Saturday to make sure checking procedures are in place.

China issued its first Kimberley certificate on January 8 in the Shanghai Diamond Exchange, the exclusive market for rough diamonds under general trade on the Chinese mainland.

Since then, the State Administration has set up offices in over 20 customs checkpoints with diamond trade around the country, most of which are located in Guangdong and Shandong, two provinces that are home to many diamond processors.

In line with the Kimberley Process, the certificate tracks a diamond's origin, weight and value in dollars, the identities of the importer and the exporter, and the date the gems were shipped, signed off with an official stamp.

The new measure comes at a time when China is emerging as a growing diamond consumer and processor, as home to the second largest number of diamond-processing staff after India.

China launched its national diamond market in Shanghai in October 2000. However, steep taxes have kept diamond manufacturers, processors and dealers away from the official exchange.

To better regulate the market and curb smuggling, the government announced a substantial tax cut in May within the exchange to attract more traders.

The move received an overwhelming response from dealers, with trade on the exchange skyrocketing since then. The 2-year-old exchange has finally become fully operational.

The trade volume raised from almost zero before May to 7.76 million carats by the year's end, according to Zhang Huidong, an official with the Shanghai Diamond Exchange Administration.

Experts say that with a better-regulated market and supervision by the authorities, the Kimberley Process will be well implemented in China.

(China Daily January 30, 2003)