Diamonds: administrative obligations and procedures

Registration as a dealer in diamonds and/or synthetic diamonds

Scope of application

The Royal Decree of 20 November 2019 stipulates that any dealer in diamonds and/or synthetic diamonds based in Belgium is required to register with the Directorate-General for Economic Analyses & International Economy (Licensing Department – Diamonds) in Antwerp. This means that they must provide proof that they fulfil all the conditions to practice the profession of dealer in diamonds and/or synthetic diamonds.

The following are subject to this Royal Decree:

• all dealers in diamonds and/or synthetic diamonds;
• brokers and manufacturers using diamonds and/or synthetic diamonds in the manufacture of appliances, self-employed persons;
• companies under Belgian law as well as under foreign law, provided they have a branch in Belgium.

The following are not subject to this Royal Decree:

• the insurance and financing of the diamond trade.

For already registered traders in diamonds and/or synthetic diamonds, the RD of 20 November 2019, pursuant to Article 18, provides for a transition period of one year from the entry into force of this Decree.

Formalities to be completed

Dealers in diamonds and/or synthetic diamonds (individuals or companies) must present themselves to the:

Directorate-General for Economic Analyses & International Economy
Licensing Department – Diamonds
AMCA building
Entrepotplaats 1 bus 5
2000 Antwerpen

They must provide the following documents:

• A document containing the national registration numbers (IDs) of all business managers/directors.
• A document containing the enterprise number assigned by the Crossroads Bank for Enterprises (through the business counters).
• For companies, a copy of the deed of incorporation and/or an extract from the Belgian Official Gazette.
• A recent extract from the criminal record (no older than 3 months) of each business manager/director, as well as the legal entity. To be requested from the FPS Justice (attach copy of ID).
• Proof of professional competence (either by means of a diploma/certificate of diamond training, or through membership of one of the 32 exchanges affiliated with the WFDB, or by means of a record of previous professional activities and experience) for at least one business manager/director.
• A certificate of participation in the anti-money laundering training approved by the department of the FPS Economy in charge of monitoring the diamond sector, in the name of at least one natural person who permanently and effectively directs the company's operations (anti-money laundering officer). Such training is currently organised, among others, by the private foundation Antwerp World Diamond Centre (AWDC) (application via www.awdc.be/en/antwerp-diamond-events).
  To be approved by the department of the FPS Economy, the anti-money laundering training must meet a number of conditions (PDF, 131.76 KB).
• Proof of power of attorney (for those representing the business manager) signed by both parties, and the representative's ID.

Upon registration, the person or company concerned is recognised as a dealer in diamonds and/or synthetic diamonds and receives written confirmation thereof. This proof can be presented to the AWDC's accounting department.

After registration, the dealer in diamonds and/or synthetic diamonds may conduct transactions of unmounted diamonds (buying and selling, import, export, etc.).

Any change to the administrative capacity of the business manager(s) or the company must be notified to the Directorate-General for Economic Analyses & International Economy (Licensing Department – Diamonds) as soon as possible and within three months of the change.

What happens if registration is refused?

Registration may be refused in certain cases (see Article 2 §8 of the Royal Decree of 20 November 2019).

With a view to whether or not the registration is refused, the FPS Economy’s department may always ask for additional clarification on the submitted documents.

In case the FPS Economy’s department decides to refuse the registration, it shall issue a reasoned decision to that effect, identifying the facts established and the ground(s) for refusal. The diamond and/or synthetic diamond trader concerned shall be notified of the decision to refuse registration by registered letter with acknowledgement of receipt.

If a registration is refused, the diamond and/or synthetic diamond trader concerned may submit a new application for registration only after the expiry of six months from the date of the refusal decision.

How lang does it take to process an application for registration?

The usual turnaround time for processing an application for registration is three weeks, provided the application is complete.

More information

The website registereddiamondcompanies.be can be consulted to check whether a dealer in diamonds and/or synthetic diamonds is registered with the FPS Economy.

The website of the Antwerp World Diamond Centre contains useful information on diamond trading in Belgium and the obligations involved: https://www.awdc.be/en/your-diamond-business-guide

Declaration to the FPS Economy of diamond import and export shipments

For every extra-EU import and export of diamonds, registered dealers in diamonds and/or synthetic diamonds must file a declaration with the Directorate-General for Economic Analyses & International Economy (Licensing Department – Diamonds), indicating:

• the value,
• the weight,
• the qualification, and
• the documented origin or provenance.

This applies to HS codes 71021000, 71022100, 71023100, 71022900, 71023900, 71041000, 7104.21, 7104.29, 7104.91, 7004.99, 71051000.

Declarations must be made at the premises of the Diamond Office (of the private foundation AWDC), Hoveniersstraat 22, 2018 Antwerp.

Intra-EU shipments may be declared to the same service, but that is not mandatory. The same modalities as for the control of extra-EU shipments will then be applied. 

The value to be declared, the weight and the qualification of the imported or exported diamonds will be determined by accredited experts under the supervision of officials of the Directorate-General for Economic Analyses & International Economy (Licensing Department – Diamonds) of the FPS Economy. The experts are accredited by the Minister of Economy after passing a proficiency test.

Officials of the Federal Public Service Finance (Customs) are present at the premises of the Diamond Office for the completion of the import and export formalities for all types of diamonds.

Exports of synthetic diamonds – dual-use goods

As mentioned above, synthetic diamonds (CN codes 7104201000 and 7104901000) are subject to the Royal Decree of 20 November 2019 on measures for the supervision of the diamond sector, and such goods must be declared through the Diamond Office.

However, a certain category of synthetic diamonds is covered by EU Regulation 428/2009, which regulates the control of trade in dual-use goods at European level. Dual-use goods are products that are actually used in civilian industry but may also have a military purpose as they could potentially be used for the development of nuclear, chemical and biological weapons and the missiles that guide such weapons of mass destruction to their targets.

That category of synthetic diamonds is found in the list of goods in the Annex (last update: 30 December 2019) to that Regulation under subcategory 6C004 - Optical materials:

6C004.f. “Synthetically produced diamond material with an absorption of less than 10-5 cm-1 for wavelengths exceeding 200 nm but not exceeding 14,000 nm.”

The control of trade in those dual-use goods is the responsibility of the Regions in Belgium. According to the EU Dual-Use Regulation referred to above, a permit from the Regions is required when exporting synthetic diamonds falling under 6C004.f (and in some cases when providing brokering services/technical assistance).

If you wish to export synthetic diamonds that meet the above specifications, you must obtain an export licence from the competent regional department (see below) before presenting your goods at the Diamond Office. When exporting synthetic diamonds, you must include with your customs declaration a signed statement indicating whether or not the synthetic diamonds are subject to the dual-use regulations.

Department of the Antwerp World Diamond Centre (AWDC)
Hoveniersstraat 22
2018 Antwerp

More information can also be found on the websites of the Flemish Region, the Walloon Region, the Brussels-Capital Region and the Antwerp World Diamond Centre.

Customs duties – VAT

Diamond imports and exports are exempt from taxes and import duties.

To benefit from the VAT exemption, dealers in diamonds and/or synthetic diamonds must meet the conditions listed in Article 42, §4 of the VAT Code. This exemption applies only to dealers in diamonds and/or synthetic diamonds registered with the FPS Economy and who are exclusively dealers in unmounted diamonds.

In combination with jewellery, there is no exemption from VAT.

Kimberley Process Certification Scheme for international trade in rough diamonds

Import and export of rough diamonds

The import and export of rough diamonds (HS codes 71021000, 71022100, 71023100) is permitted only if those diamonds:

• are accompanied by a valid Kimberley Process Certificate (KP certificate), and
• the rough diamonds are packed in a tamper-proof container affixed by the competent authority at the time of export.

The trade of rough diamonds is permitted only between countries participating in the Kimberley Certification Scheme for rough diamonds.

In this regard, please refer to Council Regulation (EC) No 2368/2002 of 20 December 2002 implementing the Kimberley Process certification scheme for the international trade in rough diamonds.

The Directorate-General for Economic Analyses & International Economy (Licensing Department – Diamonds) of the FPS Economy is one of seven authorities in the European Union responsible for controlling rough diamonds entering or leaving the European Union. The other EU authorities are located in:

• Idar-Oberstein (Germany),
• Prague (Czech Republic),
• Bucharest (Romania),
• Lisbon (Portugal),
• Dublin (Ireland),
• Torino (Italy).

In order to obtain a Kimberley Certificate for the export of rough diamonds, exporters must:

• demonstrate with conclusive evidence how they obtained possession of the rough diamonds (purchase invoices, KP certificates, etc.), and
• submit those documents to the Directorate-General for Economic Analyses & International Economy (Licensing Department – Diamonds) in Antwerp, which is authorised to draw up and validate Kimberley Certificates.

The dealer in diamonds and/or synthetic diamonds will always receive a certified copy of the KP certificate (both for import and export), which they must keep for three years along with a copy of the invoice of the transaction concerned.

• http://www.kimberleyprocess.com
• https://ec.europa.eu/fpi/what-we-do/kimberley-process-fight-against-%E2%80%98conflict-diamonds%E2%80%99_en

Industry self-regulation

With respect to the international trade in rough diamonds (Kimberley Process), EU Regulation No 2368/2002 provides for a system of self-regulation of the diamond industry. According to Regulation (EC) No 762/2003, the four Antwerp diamond exchanges are included in the list of diamond organisations applying the industry's system of guarantees and self-regulation.

Rough diamond traders who are members of one of these recognised organisations must:

• include a statement signed by the exporter on the invoice as proof of legal import or purchase;
• commission an independent auditor to certify annually:

• that copies of all supplier and customer invoices are carefully preserved for at least three years, and
• that all transactions complied with the conditions prescribed by the Regulation, or that those that did not comply were reported to the competent authority.

An independent auditor is a bookkeeper, auditor or accountant who works on behalf of third parties and who is officially accredited to practise the profession.

This declaration (KP declaration) must be submitted together with the declaration of stocks and activity (see below) to the Directorate-General for Economic Analyses & International Economy (Licensing Department – Diamonds).

If the dealer in diamonds and/or synthetic diamonds did not trade in rough diamonds during the reference year, they must personally declare this.

Dealers in diamonds and/or synthetic diamonds with a turnover in rough diamonds of less than 6.25 million euros must provide a KP declaration by an independent auditor only once every three years. However, the Directorate-General for Economic Analyses & International Economy (Licensing Department – Diamonds) has the right to request an annual declaration if there are reasons to do so.

KP declarations must be submitted by post to the Directorate-General for Economic Analyses & International Economy (Licensing Department – Diamonds) in Antwerp together with the declaration of stocks and activity (see below).

A model form for these declarations can also be obtained free of charge at Diamond@economie.fgov.be or is available in electronic form:

• Kimberley Process declaration model 1 (French) (DOC, 55.5 KB)
• Kimberley Process declaration model 2 (French) (DOC, 43 KB)
• Kimberley Process declaration model 3 (French) (DOC, 43 KB)

Import restrictions on diamonds from Russion origin and manufacture

The EU is banning the direct or indirect import, purchase or transfer of diamonds from Russia. For more information, consult the page “What are the EU’s restrictive measures against Russia and Belarus?”

Declaration of stocks and activity in the diamond sector

All registered dealers in diamonds and/or synthetic diamonds must file an annual declaration of diamond stocks and activity with the Directorate-General for Economic Analyses & International Economy (Licensing Department – Diamonds) in Antwerp.

As from the financial year 2023, this declaration can only be filed online, through the Diamondsupervision portal. The stock declaration for the financial year 2022 can also still be submitted through the old system.

The declaration for a given year (year x) must be filed by 31 March of the following year (year x+1).

Submit a declaration of stocks

Access to the Diamondsupervision portal is through CSAM, the gateway to online government services. The FPS Economy provides secure access via eID, the itsme app or SMS.
Attached you will find a manual that will guide you through the use of CSAM.

Consult CSAM manual (PDF, 641.93 KB)

For additional information, please contact us at: diamond@economie.fgov.be

The blank forms are available in electronic form (XLS, 67 KB):

• Stock declaration: information (French) (DOC, 31.5 KB)
• Stock declaration: explanation (French) (PDF, 109.12 KB)
• Stock declaration form (French) (XLS, 185.5 KB)

The completed “declaration of stocks and activity” forms must be returned by email to the Directorate-General for Economic Analyses & International Economy (Licensing Department) in Antwerp no later than 31 March of the following year.

Professional cards

Every business manager/director of foreign nationality must have a professional card for the exercise of an independent professional activity.

The application for a professional card must be submitted through the authorised Belgian diplomatic or consular representative in the applicant's country of residence at the same time as the application for residence or confirmation.

Applications for extensions, modifications and renewals must be submitted to the administration of the municipality in which the applicant resides and from which they hold a valid certificate of registration in the register of aliens or a valid residence permit.

More information regarding professional cards can be obtained from the relevant departments of:

• the Flemish Region:

  Department of Work and Social Economy
  Professional cards team
  Boulevard Roi Albert II, 35 (box 20)
  1030 Schaarbeek

  Tel.: +32 (0)2 553 08 80 or by email: beroepskaarten@vlaanderen.be).
   

• the Walloon Region:

  Service Public de Wallonie
  Département de l'Emploi et de la Formation professionnelle
  Place de la Wallonie 1
  5100 Jambes

  Tel.: +32 (0)81 33 43 00
  Website: http://emploi.wallonie.be

General legal basis

The Programme Act of 2 August 2002 introduces supervision of the activities in the diamond sector on the Belgian territory. This involves the control of:

• diamond transactions, and
• stockpiling of diamonds by dealers in:
  • unmounted and cut diamonds,
  • rough diamonds,
  • industrial diamonds,
  • boart,
  • synthetic diamonds,
  • diamond powder.

The Royal Decree of 20 November 2019 implements the provisions in Article 169, §§ 1 and 2 of the Programme Act of 2 August 2002.

Anti-money laundering legislation

The Act of 18 September 2017 (amended by the Act of 20 July 2020) on the prevention of money laundering and terrorist financing and on the restriction of the use of cash (Anti-Money Laundering Act) applies to registered dealers in diamonds and/or synthetic diamonds. The Royal Decree of 1 July 2020 contains the regulations defining the modalities of application in implementation of the anti-money laundering legislation.

This Royal Decree stipulates that every dealer in diamonds and/or synthetic diamonds must designate an anti-money laundering officer within its company to monitor compliance with the obligations imposed by the regulations:

• customer identification (with specific measures for remote transactions, for politically exposed persons or for determining beneficial owners),
• a duty of vigilance (updating data, paying attention to atypical transactions),
• a retention obligation (five years for supporting documents),
• a reporting requirement (reporting of suspicious transactions), and
• the duty to train and sensitise workers.

Article 5, §2 of the RD of 1 July 2020 stipulates that the anti-money laundering officer must prepare an annual written activity report on the application of the Anti-Money Laundering Act within the company.

This activity report must be submitted, by 31 March of each year, to:

FPS Economy
Directorate-General for Economic Analyses & International Economy
Licensing Department – Diamonds
AMCA building
Entrepotplaats 1 bus 5
2000 Antwerpen

Submit your anti-money laundering activity report online. After logging in, you can complete the form (available in Dutch, French and English) online, after which it will be automatically sent to the FPS Economy.

If you do not have login details, please contact diamond@economie.fgov.be.

Submit anti-money laundering activity report online
 

For more information on these regulations, please consult the Act of 18 September 2017, amended by the Act of 20 July 2020.