BIRKS & MAYORS INC. AND CONFLICT DIAMONDS
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1 BIRKS & MAYORS INC. AND CONFLICT DIAMONDS Birks & Mayors is very concerned about the problem of conflict diamonds. As an ambassador of the organization, it is important that each Birks and Mayors Associate is able to answer questions regarding the Organization s policy on conflict diamonds with knowledge and confidence. Ask yourself, am I able to discuss conflict diamonds and answer the following questions? (If you can t, you will find the answers in the above documents) 1. What is the definition of conflict diamonds? 2. How can I be sure the diamonds you sell aren t conflict diamonds? 3. What is your company s policy on conflict diamonds? 4. Do you know where the diamonds you sell come from? KIMBERLEY PROCESS CERTIFICATION SCHEME The Kimberley Process sets rules for the import and export of rough diamonds. There are currently 71 members of the KPCS. Since its implementation in 2003 it is estimated that those diamonds from conflict areas have been reduced from about 4% to less than 0.2%. While this is a significant reduction, the diamond industry is dedicated to continue to pursue the problem and to eradicate conflict diamonds entirely. There was a Kimberley Process Plenary Meeting on November 2, 2006 attended by representatives of the World Diamond Council, Global Witness, and Partnership Africa Canada. Their mission was to discuss the Kimberley Process and ways to further improve the processes currently in place. THE CLEAN DIAMOND TRADE ACT The Clean Diamond Act was a law that was signed in This act requires annual reviews of the standards, practices and procedures of any entity in the United States that issues KP certificates for the import and export of rough diamonds. THE U.S.A. PATRIOT ACT Along with the Clean Diamond Act, to further ensure the legitimacy of the diamond supply is a provision in the Patriot Act where dealers in precious stones or jewels are required to establish anti-money laundering programs to detect attempts to launder money and finance terrorism through businesses.
2 ENSURING A CONFLICT FREE DIAMOND INDUSTRY* MINING After rough diamonds are mined, they are transported to Government Diamond Offices. EXPORT (KIMBERLEY PROCESS): After arriving at the Government Diamond Offices, the source of the diamonds is checked to ensure it is conflict free. The diamonds are then sealed and placed into tamper resistant containers and issued a government-validated Kimberley Process Certificate, each bearing a unique serial number. There are 71 countries that have implemented the principles of the Kimberley Process and have it enshrined in their national law. Only these countries may legitimately export rough diamonds. IMPORT (KIMBERLEY PROCESS): Diamonds can only legally be imported into one of the 71 Kimberley process countries. Once diamonds are imported the government customs office, in conformance with its national procedures, checks the certificate and seals on the container. Any rough diamonds without a government-validated Kimberley Certificate or that are unsealed are turned back or impounded by Customs. MANUFACTURING/TRADING (SYSTEM OF WARRANTIES): Once a diamond has been legitimately imported it is ready to be traded, cut and polished and set into jewellery. Several companies may be involved in this process. Each time the diamond changes hands it must be accompanied by a warranty on invoices stating that the diamond is not from a conflict source. This is called the System of Warranties. Manufacturers/traders are required to audit these System of Warranties statements on their invoices as part of their annual audit process and to keep records for 5 years. RETAIL (SYSTEM OF WARRANTIES): Retailers are responsible for ensuring that the diamonds they stock and sell carry a warranty that they are conflict free. Retailers are required to audit these Systems of Warranties statements on their invoices as part of their annual audit process and to keep records for 5 years. The System of Warranties does not require the warranty to appear on the consumer's receipt. But by implementing measures for greater supervision, compliance and accountability, through the System of Warranties, within the diamond trade, consumers can be assured that the diamonds they buy are from sources that are free from conflict. Consumers can ask for assurances from their retailers that their diamond is from sources free from conflict. * From website SYSTEM OF WARRANTIES The diamond industry adopted a System of Warranties to further assure consumers of the origin of their diamonds. This system requires every buyer and seller of polished diamonds and diamond jewellery to make the following statement on all invoices: The diamonds herein invoiced have been purchased from legitimate sources not involved in funding conflict and incompliance with United Nations resolutions. The seller hereby guarantees that these diamonds are conflict free, based on personal knowledge and/or written guarantees provided by the supplier of these diamonds - The System of Warranties Assurance Statement
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4 SPEAK UP ABOUT BIRKS & MAYORS AND CONFLICT DIAMONDS You can be confident Birks & Mayors has actively implemented measures to prevent conflict diamonds to enter into its inventory through: Purchasing from the most reputable purveyors or cutters who declare on their invoices that the diamonds sold have been obtained in compliance with the Kimberley Process Certification Scheme. Notifying our vendors of our requirement to comply with the Kimberly Process Certification Scheme. Birks reserves the right to audit their diamond suppliers to ascertain compliance. Using Canadian diamonds in the creation of jewellery whenever possible as they are guaranteed to have been extracted under strict supervision, following the laws that serve to protect the diamond workforce, the mining area s native people and environment. One of the reasons that our clientele comes to Birks and Mayors is that there is an inherent trust that we would be doing all the things necessary to make sure that the Birks branded diamonds (those that are found in bridal and diamond jewellery and manufactured by our Jewellery Studios) would be carefully selected and reflect the highest standards of ethical procurement. -Paul Lombardi, Birks & Mayors Inc. You can be proud: Birks has TAKEN THE LEAD by: Being among the first to support and work with the Kimberly process insuring integrity of the supply chain. In May 1999, Birks was the initiator of a program that would provide complete tracking of Canadian diamonds. Birks was one of the first jewelers to acquire and sell diamonds mined in Canada. Birks is a signatory of the Voluntary Canadian Code of Conduct for Authenticating Canadian Diamond Claims. Being part of an industry-wide global effort to eradicate illegal diamonds.
5 " The Kimberley Process had already reduced conflict diamonds to less than one per cent of world rough diamond production, but this demonstrates the strong commitment of the 71 countries in the Kimberley Process to work with us and NGOs to eliminate the very last traces of conflict diamonds. It recognizes also the important contribution of diamonds to African development, particularly in providing employment, education and healthcare. All participants can be proud of their achievements." -Eli Izhakoff, Chairman of the World Diamond Council To demonstrate your client centered service skills: With your clients by the way you communicate the issue of conflict diamonds: We want clients to feel confident in making their diamond purchase at Birks & Mayors so it s a great opportunity to build our brand by discussing our heritage of servicing our clients. One of the guiding principles for Birks & Mayors is conducting the business with honesty and integrity and therefore we would never knowingly purchase conflict diamonds and we actively demand accountability from our suppliers. At Birks & Mayors we want you to build a person to person relationship with your client and the way you respond to the issue of conflict diamonds will determine whether you have your client s trust. You can communicate your confidence and conviction through eye contact, positive body language and being honest and straightforward in your discussions. If you do not know the answer to your client s question ask if you may get back to them with the answer while they browse in the store. Knowing that you have the support of a team of professionals in our corporate offices who are diligent in the sourcing and procurement of our diamonds. Our goal at Birks & Mayors is to our provide clients with the finest, most beautiful diamonds. We want our clients to feel that a diamond purchased from us is a true symbol for any type of celebration, whether it is an engagement, an anniversary, a promotion or just because.
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