KIMBERLEY PROCESS CERTIFICATION

SCHEME

REPORT OF THE REVIEW VISIT TO BRAZIL

24-29 APRIL 2006

Review Visit Members:

United States Represented by Mr Stanley Specht (team leader) and Mr. Alfredo Gurmendi

Angola Represented by Ms Maria dos Santos

Canada Represented by Ms Gabrielle FitzGerald and Ms

Jennifer Loten European Community Represented by Mr Kim Eling

Global Witness Represented by Ms Charmian Gooch,

World Diamond Council Represented by Mr Andrew Coxon

   

Table of Contents

Page 1. Introduction and Methodology

3 2. Legal Framework 5

3. Institutional Framework 8

4. Geology, Exploration, and Production 8

5. Import and Export Regime 10

6. Internal Controls 12

7. Industry Self-Regulation 17

8. Statistics 18

9. Regional issues 20

10. Recommendations 21

11. Glossary 26 Annexes

Annex I: Review Visit Programme

Annex II: DNPM Executive Summary Special Audit Report

Annex III: Brazilian replies to Statistical Questions

Annex IV: Regulation Number 295

Annex V: Proposed Garimperio Law

1.Introduction and Methodology

   

1. At the invitation of the Brazilian Government, the Kimberley Process Certification Scheme (KPCS) sent a Peer Review visit team to Brazil from April 24 to April 29, 2006. The team conducted its review under the terms of the KPCS Administrative Decision of October 30, 2003. A copy of the Review team’s program is attached at (Annex 1).

2. The team consisted of Stanley Specht, U.S. (team leader); Alfredo Gurmendi (U.S.), Kim

Eling (European Commission), Jennifer Loten and Gabrielle FitzGerald (Canada), Maria dos Santos (Angola), Charmian Gooch (Global Witness) and Andrew Coxon (World Diamond Council). A full list of Brazilian participants who met with the KP team appears in the program. The team would like to thank the many officials, companies and associations that assisted in making the visit a productive, informative and a pleasant experience. We would like to express our special appreciation to Mr. Samir Nahass, of the Secretariat of Geology, Mines and Mineral Processing, for his hospitality and flexibility in coordinating all the logistical arrangements for the team.

3. At the time of the KP visit, Brazil maintained a voluntarily suspension of its rough diamond exports imposed in February 2006, in conjunction with Operação Carbono, a high-profile, international and domestic criminal investigation of companies and individuals that had obtained KP certificates (KPCs) using a variety of fraudulent techniques. The scale of the uncovered fraudulent practices at that time of the visit was stunning. We were told by authorities that 49 of 150 KPCs issued during 2003-2006 had used a variety of fraudulent techniques to hide the origin of the rough diamonds. The fraudulent amounts verified by the authorities at that time of the visit totalled approximately $22 million, but these findings were described by an official involved in the Operação Carbono as the “tip of the iceberg.” Considering that Brazil registered only $46 million in official rough diamond exports during 2003-2006, the preliminary results of this investigation indicates a serious and systematic abuse of the Brazilian KP system that undermines its credibility with other KP stakeholders. Additionally, the KP team heard from a numbe r of authorities that a significant, but unknowable amount of Brazilian diamond production is smuggled out to neighbouring countries and thus is not covered by the KP system.

4. Brazilian authorities are to be commended for their openness and cooperation with the KP team, the seriousness of their efforts to address both KP specific issues and long-standing social issues in the mining sector and their recognition that major structural changes and increased resources are needed to address these shortcomings. To address these shortcomings, the Departamento Nacional de Produção Mineral (DNPM) conducted an audit of its KPCS and provided the KP team in June 2006 a copy of the DNPM Executive Summary of its Special Audit Report of the KPCS of May 2006 referred to in this report as (SAR). The KP team was favourably impressed with the comprehensive nature of the ten recommendations contained in the SAR, which, if implemented, provide the basis for a fundamental overhaul of the KP system. We urge all of these ten recommendations be adopted as soon as possible. We will refer specifically to a number of recommendations in the SAR as they track, and in some case are identical to the official recommendations made by the KP team contained in Section 10 of this report. A follow-up visit by a KP peer review team is essential to assess the state of implementation of the reforms needed of the KPCS in Brazil, as well as, to visit key diamond producing regions that the KP team was unable to visit in April 2006 given time constraints.

   

The Brazilian authorities confirmed to the team that they recognize the importance of a follow- up visit in order to provide assurances to the other Participants in the Kimberly Process that Brazil has rectified these serious shortcomings and is fully implementing their KP undertakings. The KP team recommends that this follow-up visit, be arranged at a mutually agreeable time within the next year.

2. Legal Framework

5. In Brazil, the legal framework for implementation of the KPCS consists of a specific KPCS law adopted in 2003 (Law No 10.743 of 9 October 2003), a Regulation adopted in 2003 [Joint Regulation No 397 of 13 October 2003, adopted jointly by the DNPM within the Ministério de Minas e Energia (MME) and the Secretaria da Receita Federal (SRF) within the Ministério da Fazenda (MF)] and an implementing Regulation adopted in 2006 (Regulation No 295 of 1 September 2006, adopted by the Director-General of the DNPM1). The internal controls over diamond mining required by the KPCS to provide assurances as to the origins of diamonds produced are based on the relevant provisions of Brazil’s general mining legislation.

6. Law No 10.743 (which replaces the provisional legal instrument2 that initially allowed Brazil to fulfil the minimum requirements for becoming a Participant) sets out the conditions under which rough diamonds can be exported from or imported into Brazil; determines the institutions responsible for implementation of the KPCS and their respective tasks; and lays down the penalties applicable for infringements of the law.

7. Specifically, the penalties set out in the law involve the forfeiture of goods submitted for customs procedures without a valid Kimberley Process Certificate (KPC) or carried without a valid KPC within ports, airports or border customs posts; and fines equivalent to 100 percent the value of the goods in cases of export or import of rough diamonds without a valid KPC, or where fraud is used to obtain a KPC. Application of such penalties is the responsibility of the MF.

8. The law sets out the responsibilities of the different Ministries involved in implementation of the KPCS in Brazil. The primary responsibility is attributed to the DNPM, which is given the task of issuing Brazilian KPCs. At the same time, the law provides that the SRF is responsible for examining and verifying parcels submitted for customs procedures on export. The law also provides that in cases where a shipment for export has to be opened as part of customs controls, the SRF may issue a replacement KPC (as far as the review visit was able to ascertain, this has never so far been the case).

9. While the law also refers to the Ministério do Desenvolvimento, Indústria e Comércio Exterior (MDIC) as being jointly responsible for the implementation of the KPCS, it is the understanding of the review visit team that this department does not play any practical part in the issuing of KPCs or in the export or import procedures set out in the law.

1  Regulation  No.  295  of  a  September  2006  replaced  Regulation  No  209  of  5  August  2005.  2  No  125  of  30  July  2003.  

   

10. Joint Regulation No 397 and DNPM Regulation No. 295 set out in greater detail the procedures that apply to export and import and notably lay down the conditions that have to be met for a parcel of rough diamonds to be granted a KPC for export. Both Regulations foresee that the issuance of a KPC is to be based on the information provided by the exporter or his legal representative. Joint Regulation No 397 provides that “at the discretion of the DNPM, and in exceptional cases, a technical evaluation may be requested in order to confirm the authenticity of the information given by the exporter.” The legislation adopted specifically to implement the KPCS has to be read in conjunction with the legislation providing for mining concessions, given that any application for a KPC to export a parcel of rough diamonds has to refer to the mining title where the diamonds in the parcel were mined.

11. In Brazil, the Federal Government is the sole entity responsible for legislating on deposits, mines, mineral resources, production, and processing. The exploration and exploitation of mineral resources in Brazil are defined and regulated by the 1967 Mining Code (Executive Law No. 227 of February 28, 1967). The Brazilian Constitution which was enacted on October 5, 1988, the Constitutional Amendments Nos. 6 and 9 dated August 15, 1995, and the Mining Code, Law No. 9,314 of January 1997 provide greater flexibility for investment in the Brazilian mining sector. Article 7 of this Law stipulates that the exploitation of mineral deposits will depend upon an Exploration Authorization Permit granted by the General Director of the DNPM and a Development and Mining Concession issued by the Ministro do Minas e Energia. Licensing is a restricted system applicable exclusively to the exploitation of industrial minerals. The DNPM is responsible for enforcing this mining code and its complementary legal provisions.

12. The Small-Scale Mining (Garimpos) within the Cooperatives have priority in authorization (permits for exploring) and concessions (for mining) small-scale deposits, in the areas where they are operating (mostly alluvial diamonds, gold, and tin), and in those established by the Federal Government via Permissôes de Lavra Garimpeiras (PLGs) (Law no. 7,805/1989) to Cooperatives in order to formalize the activities of the garimpeiros. This process of social inclusion has been intensified during the past three years.

13. According to the Brazilian Constitution, the National Congress is responsible for authorizing exploration and exploitation of mineral resources in lands of indigenous peoples, the affected, indigenous peoples being assured a share (royalty) in the results of the mining. In 2004, due to violent clashes between garimpeiros and indigenous peoples, the Brazilian government, passed legislation suspending mineral exploration and controlling mining activity on territories hosting indigenous peoples. The Brazilian Congress is considering legislation to regulate mining on indigenous lands, which account for 12 percent of Brazilian territory.

14.    The Brazilian government is attempting to clarify the status of garimpeiro mining through several measures. A draft Garimpeiro Law (Projecto de Lei No. 7505 de 2006) is under consideration by the Brazilian Congress. The draft law establishes a legal framework for garimpeiro activity in Brazil and identifies garimpeiro rights and obligations. The MME through the SGM also is preparing two projects to further address the problems associated with garimpeiro mining. Those projects include a national program for formalization of mineral production (Programa Nacional de Formalização da Produção Mineral) and a project to

   

consolidate garimpeiro training through cooperatives (Projeto de Consolidação e Capacitação de Pequenos Produtores Minerais no Trabalho Cooperativo.)

15. Prior to September 2006, diamond dealers-traders (buyers/sellers) were not covered by any laws or regulations. With the adoption of Regulation 295, all producers, dealer-traders and importers and exporters are required to register online through an electronic application form in the National Cadastre of Diamond Trade (CNCD.) The form is submitted to the DNPM Director General, printed and filed in DNPM Regional Offices. All sales dating back to October 1, 2005, must be reported. All commercial transactions must be recorded on a Report of Commercial Transaction (RTC) which is monitored by the DNPM.

Assessment

16. The review visit team notes that Brazil adopted legislation to implement the KPCS in 2003 in accordance with its obligations under the KPCS. The legislation sets out very clearly the procedures to be followed for the export and import of rough diamonds, and establishes the responsibilities of the different services involved in implementation of the KPCS in Brazil.

17. The review visit team notes that the law adopted in 2003 provides for clear penalties in cases of infringement of the law. However, the review visit team believes that against the background of the alleged extensive fraud that has occurred in the issuance of Brazilian KPCs, consideration might be given to the introduction of more severe penalties (including custodial penalties) for the most serious cases of infringement.

18. The review visit team notes that in the attribution of mining concessions, on-site controls by the DNPM are required as part of the production process for industrial-scale mining. The team believes that legal requirements for on-site checks by the DNPM should be introduced for all types of mining concessions (including PLGs).

19. The review visit team notes that the efforts of the Brazilian government have been directed at ensuring that all diamonds presented for export can be sourced to some legal mining title, and believes this effort is consistent with the requirement for effective internal controls contained in the KPCS.

20. However, the review visit team also notes that garimpeiro miners do not at present have any formal status in Brazilian law (following the abrogation of the garimpeiro status in 1988), and believes this creates a strong incentive for garimpo production to be falsely presented as derived from a legal mining title.

21. The draft law governing garimpeiro activity is before Congress. The review team encourages the Brazilian authorities to pursue efforts to establish a framework in which garimpeiro production can be legally captured by the certification system.

3. Institutional Framework

   

22. Four Government Ministries cooperate to monitor and control the export and import of rough diamonds in Brazil. These are MDIC through its Department de Comércio Exterior (DECEX), the MF through the SRF, the MME through the DNPM, and the Ministerio da Justiça (MJ) through Departamento de Policia Federal (DPF). Each Ministry has discrete responsibilities at different stages of the export process and communications among the Ministries appear to be weak. Overall responsibility for implementing and coordinating the Kimberley Process is exercised by the Ministry of Mines and Energy through the Secretariat of Geology, Mining and Minerals Processing (SGM) and the DNPM. The DNPM is responsible for the system of internal controls, the issuance and safeguarding of KPCs, and providing Customs assurance that documentation needed to legally import rough diamonds into Brazil has been completed. The SRF is responsible for the monitoring of export and import of rough diamonds, and the issuance of the nota fiscal, the basis of calculation of production tax, and the indication of point of origin. The MJ is responsible for the legal framework governing the production and movement of rough diamonds. The DPF supports and enforces the activities of the other Departments. We were told that these Ministries meet on a regular basis to coordinate and share information.

4. Geology, Exploration and Production

23. The kimberlitic Province of West Minas Gerais is the most important diamondiferous district in Brazil and contains the majority of kimberlites discovered up to the present time. The geology of this Province comprises Upper Pre-Cambrian metasediments belonging to the Araxa Group (oldest unit composed of schists and metabasites of high greenschist and amphibolite facies); Canastra Group (quarzites and phyllites); and Bambui Group (slates and limestones). Several kimberlites in West Minas Gerais appear to be Cretaceous, which is supported by field evidence and it began with the outcropping of basaltic lava that intruded the sediments of the Parana Basin about 125 million years ago. The kimberlite occurrences in Brazil are located in the States of Bahia (Morro de Chapeu and Lençois); Goías (Baliza and Mineiros); Mato Grosso (Aripuanã, Chapada Guimarães, Diamantina, Juína, Proxeu, Rondonopolis, Coxim, and Barra do Garças); Minas Gerais (Tiros, Estrela do Sul, Coromandel, Romaria, Abaete, Grão Mogol, Diamantina); Pará (Marabá); Parana (Tibagi); Piauí (Guilbues); Rondonia (Machado); Roraima (Tepequen, Uraricoera); and São Paulo (Franca).

Exploration 24. Exploration of mineral resources will always be authorized (permitted) for a limited or fixed set period; the mining concession is for an unlimited period. Exploration permit and mining concession rights may not be assigned or transferred, wholly or partially, without prior consent by the Federal Government.

25. In Brazil, some advanced projects are the Juína diamond project, the Chapada alluvial diamonds projects, a bulk sampling alluvial project in the Abaete River; the Canastra kimberlite project, and some work on properties in the area of Patos de Minas in Minas Gerais State where many kimberlites and lamproites have been found since 1995. Investments in the Brazilian mining industry are expected to continue to enhance exploration and mine development activities in, in order of importance, iron ore, gold, copper, diamond, and emeralds. This trend is expected to continue because several transnationals have been forming consortiums, joint

   

ventures, and acquiring exploration properties, mining prospects, and permits particularly for, in order of importance, oil and gas, iron ore, gold, diamond, and base metals. The Brazilian Companhia Vale do Rio Doce approved an $80 million exploration budget, and 80 percent of which was allocated to the search for bauxite-, copper-, diamond-, gold-, iron-, and nickel- bearing deposits in 2005.

26. The States of Mato Grosso and Minas Gerais, and the States of Pará, Rondonia, Roraima in the Amazon region continued to offer potential for major undiscovered mineral wealth in addition to the large reserves of, in order of economic value, iron ore, manganese, bauxite, gold, and tin. A factor that may constrain mineral development over the longer term, however, is the concern over biodiversity in the Amazon Rainforest, which comprises 30 percent of the world’s remaining tropical forests, provides shelter to 10 percent of the globe’s plant and animal species, and removes excess carbon dioxide from the atmosphere. Much will depend, however, on the approaches and technologies to be used for economic and social development while protecting the environment in a sustainable way.

Production

27. Brazil is one of the most important producers and traders of mineral commodities, worldwide. In South America, Brazil is the leading producer and trader of mostly alluvial diamonds followed by Guyana and Venezuela. The country continued to be one of the South America’s leading gemstone producers and exporters. Many different varieties of gemstones are found in the Araxa, Canastra, and Bambui Groups; these include, in order of value ($/carat), diamond, emerald, aquamarine, topaz, tourmaline, opal, chrysoberyl, amethyst, citrine, and agate. Brazil is the world’s only source of some quality gemstones, such as imperial topaz and Paraíba tourmaline.

28. According to the DNPM’s Sumário Mineral Statistics—2000-2005, Brazil’s diamond production from year to year has been uncertain, and annual production has been declining since 2000. In 2005, Brazil produced 300,000 carats valued at about $26.1 million or $87 per carat, compared with 300,000 carats in 2004 valued at $26.4 million; 400,000 carats in 2003 valued at $38.1 million; 500,000 carats in 2002 valued at almost $31 million; 700,000 carats in 2001 valued at $43.8 million; and 1 million carats in 2000 valued at $56 million.

29. Diamond mining is be dominated by the garimpeiros from alluvial deposits located in Coromandel and Diamantina, Minas Gerais; Juína, Poxoréu, and Guiratinga in Mato Grosso; and Serra de Tepequém, Bacia dos Quinô, Suapi, and Mau in Roraima.

30. Brazilian garimpeiro output, has apparently continued to decline because depletion of garimpos’ reserves and increased environmental restrictions. In 2005, the Government continued closing high-content gem placers in indigenous reserves to exploration, the jewellery industry’s gemstone consumption was unknown, taxation on domestic sales of jewellery was high, and the private sector faced severe competition from its black-market competitors in the triangle of Boa Vista (Brazil), Lethem (Guyana), and Santa Elena de Uairén (Venezuela). Taking into consideration these factors, Brazil’s gemstone reserves were almost impossible to quantify. Brazil (according to the DNPM’s Anuário Mineral—2005), however, diamond production may have great potential because it has 1,000 million cubic meters of sedimentary

   

rocks that contain diamond that grade between 0.01 and 0.1 carat per cubic meter, or about 26 million carats equal to about 2.1 percent of the world’s diamond reserve base.

31. Brazilian diamond production could increase significantly in the foreseeable future because of increased interest by domestic and foreign investors in largely unexplored areas. Thus far (2005), the DNPM has granted investors of the private sector with 1,200 exploration permits, which could increase primary diamond discoveries. Known diamond occurrences are mostly Precambrian deposits (kimberlites) and alluvial placers. For example, a joint venture of Brazilian Diamonds Limited of Vancouver, British Columbia, Canada, the Brazilian state-owned mining development organization CODEMING, and the Mineração  Rio  Novo  Ltda.  of Brazil are conducting a feasibility study of the Santo Antônio do Bonito River drainage in Minas Gerais.

5. Import and Export Regime

32. The Brazilian system to control the import and export of rough diamond in accordance with KPCS standards is characterised by some important strengths, including features which could constitute best practices. Brazilian officials are convinced that their adherence to the KPCS and the accompanying implementation of new procedures including the issuance of licensing and export\import controls have already yielded benefits. In particular, these include improvements in the ability to monitor levels of production and exports over time. Further improvements, notably in record keeping with regard to imports, and enhanced communication between levels and branches of government would strengthen the system.

The Application Process

Subsequent  to  the  review  visit,  Regulation  Nr.  295,  was  adopted  on  September  1,  2006  creating  the  following  application  process:    

• The  National  Cadastre  of  Diamond  Trade  (CNCD)  is  a  national  trade  monitoring  instrument,  which  is  available  on-line.  All  producers,  dealer-­‐-­‐-­‐traders  (buyer/sellers)  and  importers  and  exporters  are  required  to  register  in  the  CNCD  through  an  electronic  application  form.   The  form  is  submitted  to  the  Director  General  of  DNPM,  printed  and  filed  in  DNPM  Regional  Offices.   A  CNCD  must  report  his  sales  dating  back  to  October  1,  2005.  

 • The  Report  of  Commercial  Transactions  (RTC)  is  a  monitoring  and  control  

instrument  of  production  and  trade  of  rough  diamonds.   The  reports’  content  is  described  in  Article  9  of  the  regulation.   All  data  presented  in  this  report  is  subject  to  monitoring  by  DNPM  

 • According  to  Article  13  of  the  regulation,  a  KP  Certificate  may  only  be  issued  for  

diamonds  originated  from  a  production  area  that  has  been  monitored  by  DNPM.    

• Article  14  defines  the  specifications  of  the  rough  diamonds  for  export  .  

   

• Article  15  defines  the  monitoring  that  should  be  made  by  DNPM  before  sealing  a  package  of  rough  diamonds  for  export.  

 .  

Exports: 33. The central feature of the control of exports is SISCOMEX, Brazil’s on-line system to control and monitor exports of all kinds. The system provides a direct link between the Central Bank of Brazil, the SRF of the MF and the DNPM of the MME and is accessed directly by both exporters and authorities to register, monitor and verify products destined for export as they move from the exporter through approval processes until they leave the country. As part of the commitment to the KPCS, Brazil created a separate category within SISCOMEX for rough diamonds. The category imposes an additional requirement to physically examine and verify shipments of rough diamonds as they leave the country.

The Export Process:

34. The export process begins with the issuance of a KPC. Modified in 2005 as part of the follow up to Operação Carbono, Law 209 gives the exporter 60 days from the issuance of the KPC to deliver the stones to the importer, after which the certificate expires. With the KPC in hand, the exporter logs onto the SISCOMEX (which can be done from any internet connection) and registers the intention to export. The exporter provides detailed information including contact information, a description of the goods including weight, value of the parcel, point of origin, and destination. The exporter is responsible for the accuracy of the information entered into SISCOMEX. The DNPM is notified of the intention to export through SISCOMEX, and can verify the information against data available through the KPC application.

35. Almost all official exports of rough diamonds leave Brazil by air, most through Minas Gerais. The customs office at the airport is managed jointly by the Receita Federal and the Federal Police. Customs monitors all exports through the SISCOMEX. When a shipment of rough diamonds appears on the system, the customs officer is prompted by the system to physically inspect the parcel. Agents check for a valid KPC, ensure that the information on the certificate is consistent with the information recorded in SISCOMEX, and have training to assess whether the description matches the parcel. Agents do not have sorting or valuation training, and have no capacity to verify the origins of the stones. They accept at face value the information on the KCPS and in SISCOMEX and in this are dependent upon the accuracy of the information provided by the exporters themselves, and by the DNPM’s KPC approval process.

36. If upon inspection inconsistencies are noted, the inspecting officer will contact the DNPM’s KPC issuing office to verify the validity of the certificate. Should the parcel appear inconsistent with the information on the certificate, the agent may contact a local evaluator to verify the value of the parcel. Although Minas Gerais processes the majority of exports of rough diamonds, there is only one Receita Federal technician in the state. Receita Federal is authorised to open the parcel for a thorough inspection, and can issue a replacement KPC should the parcel pass inspection. One thousand of the five thousand KPCs printed by the mint have been set aside for this purpose. Should an agent wish to open a sealed parcel, both the DNPM and the exporter

   

would be notified and are required to be present. The customs office in Belo Horizonte, MG, through which the majority of rough diamond exports pass, has never opened a shipment.

37. If the agent is satisfied that the certificate is valid, and the contents of the parcel appear to match the description on the certificate, the shipment is cleared for export.

Imports:

38. On average 90 percent of imports of rough diamonds into Brazil are industrial and are processed through the major centres of São Paulo and Rio de Janeiro. The Review team did not have the opportunity to visit these sites, but were provided with extensive information through the DNPM team, the Federal Police, and through the customs office at the Belo Horizonte airport. The general procedure is outlined as follows:

39. Customs officials in São Paulo or Rio send a copy of the KPC to the DNPM in Brasilia, who verify authenticity of signatures through an electronic record of issuing countries authorities. Separately, the importer provides a declaration to the DNPM his identification number in the Registry of Contributors of the SRF, his full address, the description of the imported merchandise, and its weight in carats, the value of the parcel in U.S. dollars, the origin of the diamonds, and a copy of the KP certificate issued by the exporting country. When the shipment is received at customs, the agent notifies the DNPM which authorises the import. The original certificate remains at the point of entry, in the possession of the importer. Neither the importer nor the government is currently required to retain the original certificate for any period of time. Brazil does not currently confirm receipt of the shipment with exporting countries.

40. There are no records of imports arriving by other than air. Illegal or suspicious imports are seized at the point of arrival by the Federal Police and are the property of the DNPM.

6. Internal Controls

Overview:

41. The KP  Review team sought to clarify the system and practice, even though exports had been suspended by the Brazilian Government since February 2006 as a result of Operação Carbono. In addition the KP team sought to clarify what changes to the system have been adopted by the Brazilian Government through the DNPM. An Executive Summary (Relatório da Auditoria Especial Certificação do Processo Kimberley no Brasil, Sumário Executivo, SAR) was prepared by the SGM, the MME, and the DNPM. The work was in response to a joint investigation by the police and other authorities, as well as reports by the Non Government Organization (NGO) Partnership Africa Canada (PAC). With up to 45 percent production either fraudulent or suspect, serious reforms are needed. The SAR report verified the serious problems involving fraudulent mining claims and exports and money laundering which had affected a significant percentage of the diamond sector in Brazil. It recognised that there had been no proper check of KP Certificates before issuance and that there were no adequate management systems in place. The report indicates that the pertinent authorities and the Public Ministry

   

(Ministério Público Federal) and the Federal Police (Polícia Federal) will implement the reforms. The recommendations of the SAR address many of the failings that led to the fraudulent activities and exports. The review team endorses the measures recommended by the report. The team further urges that DNPM present a formal report to the Botswana Kimberley Process Plenary in November 2006 detailing the recommendations that have been implemented.

The suspended system:

42. The KPCS is implemented by the MME through the SGM and operationally through the SGM.      SGM is responsible for overall coordination of the KPCS in Brazil and acts as a focal point. The DNPM is responsible for issuing and control of the KPCs, and has other areas of responsibilities – see below for more detail. The other Ministries involved:

• The Ministério do Desenvolvimento, Indústria e Comércio Exterior (MDIC) through its

Departmento de Comércio Exterior which is responsible for Export and Import Statistical Data;

• The MF through its SRF which is responsible for Customs Control (see section on Export and Import Processes);

• The Ministério das Relações Exteriores (MRE) through its Divisão de Acesso a Mercados (DACESS) which acts as an information interchange between Ministries and Embassies receives and distributes documents and acts as a general facilitator;

• The MJ which is responsible for combating smuggling.

43. The main work of the DNPM is to oversee the issuing of exploration permits and mining concession rights for all minerals in Brazil. Its duties have also expanded to include the collection of fees and duties. Many of the elements of the work carried out as part of the KPCS (alluvial diamonds) are paralleled by the licensing and data collection on other minerals (mostly gold and tin). The DNPM oversees 80 mineral production chains, and 160,000 mining titles with a staff of 840 employees, including 240 professionals. Only a small percentage of these are devoted diamond mining. At the time of the visit, the team was informed that the DNPM was in the process of hiring 200 new employees, the first new hires in 30 years.

44. The core system of internal controls is the point in the process where the application for a KPC is cross referenced with the Cadastro Mineiro (which is a publicly accessible database) and contains all the exploration permit and mining concession rights. The ease of access and transparency of the system is very impressive. Whilst good in principle, in practice, as Operação Carbono has found, there was a total failure to catch large-scale fraudulent production from mining licenses that were not physically capable of such production. The system did not include field visits, which meant that no on-site checks of the data on KPC Export applications were made between the start of the KPCS in Brazil in late 2003 and early 2006. Nor was the review team able to find evidence of any office-based checks or reviews.

45. The first step in obtaining a KPC is to obtain an Application Form which can be downloaded from the DNPM’s website or obtained from any of the 25 regional DNPM offices. The exporter is responsible for the accuracy of the data. It was noted that the DNPM processes approximately 30,000 requests per year for the entire mineral sector. However the staff working on diamonds dealt with very small numbers of requests for KPC for export. In 2005, the two most active

   

states, Minas Gerais averaged 2.8 per month and Mato Grosso 3.4; with 9 being the highest number processed in one month by both of them. The DNPM official checks the number of the mining license against the SIGMINE database and Mineiro checks that there is a receipt or chain of sales receipts as appropriate, verifies the carat weight but is not trained to verify value which is left to the exporter to declare. The lack of official valuation has been identified by the DNPM as an area for reform and they have hired staff to be trained. An export can be made directly by a mining company or by a buyer who may have purchased from a miner, or from other buyers. In the latter case a series of receipts is required to show each sale, with the receipt from the first point of sale including the number of the mining title. The review team was unable to make a physical inspection of the files as they were still being held by the police as part of Operação Carbono. This makes it difficult to comment on the efficacy of the chain of receipts. There does not seem to have been any proper cross referencing activity at the regional office. For example, while the number of the mining title is checked to verify that it is correct no check is made to ascertain whether the production data is feasible, nor is there any cumulative data gathering. This is one of the many areas that Brazilian authorities have identified for immediate improvement. A clear example of the scale of the problem is the case of KPC 64 detailed in PACs reports of 2005 and 2006. The PLGs were approved on June 30, 2004. Eight days later, on July 7,  2004, some 6,876.92 carats were sold to Morgan Mineração Industria e Commercio. The company later noted that the receipts were falsified. It is of concern that the operating system at the DNPM failed to verify: 1) that the production came from an area that was unlikely to produce such quantities; 2) that the first sale was impossibly soon after the PLG had been granted; 3) the difference between declared value for KPC purposes, of $981,895, and the official receipt from the exporter to the importer of $2,969,228. The total number of certificates processed by the DNPM for export is relatively low: 59 in 2004 and 79 in 2005. There were 13 KPCS exports during the last two months of 2003, and in 2006 just six in January with the suspension halting exports until September. In 2004, the Minas Gerais office handled 49 of the export applications and the Mato Grosso office just 10. This changed in 2005 with the Mato Grosso office handling 41 applications, the Minas Gerais office handling 34, and the offices of Rio de Janeiro and Paraná Janeiro Paraná three in total. The pattern continues in the first month of 2006 with four export applications in Mato Grosso and two in Minas Gerais.

46. Once the mining title and receipts have been checked an individually numbered physical file is created and stored at the regional office. The official then faxes a copy of the request form to the head office in Brasilia where the relevant official checks that the regional office did generate the KPC request and then proceeds to enter the data and issue the KPC. This was the only form of check made; and no adequate oversight measures were in place at the head office. The centralised database recording the data from the export certificates is sited in the Brasilia office. The physical files for each export remain in the regional office where the request for export was originally lodged. Brazil tallied a very high proportion of cancelled certificates due to technical printing issues: 2003 - 13 issued and four cancelled; 2004 - 59 issued and nine cancelled; 2005 - 79 issued and 14 cancelled; 2006 - 6 issued and 4 cancelled. The team was not able to verify the original or the cancelled certificates as all files had been removed by the police as part of Operação Carbono. An initial review indicated that certain KPCS minimum requirements were not included on the certificates. These include the identification of the rough diamond importer and exporter, including the complete mailing address, as well as indicating the number of parcels in the shipment. Brazilian officials have indicated they will begin advance notification of

   

shipments to foreign importing authorities to include importer and exporter address and number of parcels. Given the team's inability to verify the files a full review of the paper files would be necessary during the follow-up review visit. Sufficient time must be allocated to the review team in order to properly view the complete reports. The security for the storage and filing of certificates and KP data was minimal and although it does not appear that there have been any breaches.

Assessment

47. The review team was positively impressed by the commitment shown by the DNPM staff to correctly implement the essential elements of the KPCS. One element of the system, the Cadastro Mineiro (https://sistemas.dnpm.br/sicom/sicom.asp) represents a level of transparency and public access which merits particular mention as a best practice that could be emulated by other Participants. If connected into a reporting and verification structure with full cross referencing of information and with risk analysis profiling, then the database could become a powerful tool in building a system to eliminate the potential presence of conflict diamonds and to combat fraud and money laundering by organised crime.

48. It was clear to the review team that a serious attempt has been made to understand how such a high percentage of fraudulent certificates were possible. According to the recent (May 2006) Summary Audit Report, there appear to be good proposals for addressing the gaps in the system however these are all future proposals.

49. The scale of the problems highlighted by PAC and investigated as part of Operação Carbono has clearly had a major impact on the Brazilian government and the DNPM in particular. The DNPM and indeed the Brazilian government understood that the former system could not provide the necessary controls as required by KPSC Section IV(a) “Each Participant should establish a system of internal controls designed to eliminate the presence of conflict diamonds from shipments of rough diamonds imported into and exported from its territory.”

50. The DNPM has traditionally been responsible for granting permission for exploration and concession for mining. With the introduction of the KPCS the focus has been upon managing the mining authorisation process and then upon the physical issuance of the KPCs. What to date has been lacking is a focus on regular and rigorous analysis of the data, and a complete lack of oversight and analysis of the dealers-traders (buyers and sellers): these elements are necessary to develop a robust system. Operação Carbono has shown that it is essential for the government to increase the focus of the DNPM to include buying activity which had been regarded as a matter solely for the Ministry of Development, Industry and Foreign Commerce  through its Secretaria de Comércio Exterior (SECEX-MDIC). In other countries facing similar challenges, in building systems to cope with widespread alluvial mining and with buying activity, authorities have chosen to include licensing of the buyers as an important element of their KPCS. The team believes that such licensing, with subsequent oversight of activity would be an enormous help in addressing the weak elements of the KPCS in Brazil.

51. Another complex problem also faced by other countries with alluvial production, is of the large numbers of unlicensed diggers (garimpeiros). The Government is encouraging the

   

formation of cooperatives (Comunidades-garimpeiras em CoopMinas) and we were told the number of CoopMinas formed over the past two years had increased from 11 to 147, including 9 diamond CoopMinas. There is a lack of clarity over the approximate numbers of those working in the illegal sector in Brazil. Whilst the DNPM give an estimate of 20 percent of Brazil’s exports as coming from this sector, the wide range of figures from various sources, from unfeasibly small to very sizeable, make the 20 percent figure hard to analyse.

52. Brazil does not have reliable statistics on the number of garimpeiros. SGM is carrying out a project to register the number of people who work as diamond garimpo and miners of other gems. The DNPM told the review team that there were an estimated 9,000 diamond garimpeiros working in Brazil, but the number of people who depend on alluvial mining may have reached as high as 500,000. These estimates should be clarified. This points to the need for the DNPM to improve data collection. There are projects and initiatives to develop cooperatives, but they are limited in comparison to the number of unlicensed miners. To add to the challenges faced by the Brazilian Government much of the illegal unlicensed mining activity takes place on reservations where mining activity is completely banned. A number of these reservations border other countries which increases the risk of goods being smuggled into and out of Brazil.

52. The system had been too reliant on individual officials carrying out their duties rather than there being an integrated reporting system to ensure oversight and consideration of issues at a team level on a regular basis. The recommendations arising from the Special Audit Report address the lack of structured oversight. It is clear that the DNPM staff is committed to addressing the problems.

Reforms Underway

53. Subsequent to the review visit, Brazil launched an overhaul of its regulations governing rough diamonds through Regulation 295 (Portaria No. 295 of September 1, 2006.) Regulation 295 establishes new requirements and a new electronic system for the issuance of KP certificates. Applications are available at http://www.dnpm.gov.br/cpk. A Report of Commercial Transactions also has been established to monitor diamond production and trade. The DNPM has assembled a team of experts to monitor KP activities, including control of rough diamonds production. The team will maintain a photographic cadastre of diamond production and records of mineralogical and gemological descriptions of diamonds collected from regional DNPM offices. The team will maintain a database on rough diamond production and trade and the mining cadastre.

7. Industry Self-Regulation

54. Brazil produces many of the most valuable and important beautiful diamonds in the whole world but as most of them are recovered by the informal mining sector and sold to itinerant diamond buyers, the full value and production origin is rarely declared.

55. Exceptional stones include the largest red diamonds worth up to $1m per carat after polishing and Gemological Institute of America certification. Others of note are pink or blue with a rough export value of $150,000 per carat and large gem diamonds weighing between two

   

hundred to four hundred carats each valued at a minimum of $25,000 per carat. These figures will always distort Brazilian diamond statistics from quarter to quarter, year to year.

56. Unfortunately, to the country’s detriment, Brazil has been one of the most hospitable places to buy and sell diamonds for over forty years. Possibly because in the past legislation has focused more on diamond extraction than it has on trading and exporting with the result that the term self regulation has been taken literally by many diamond dealers for too many years.

57. The recent Operação Carbon by Brazilian authorities has had a dramatic effect on all diamond traders and they have started to take a fresh look at Brazilian rules and regulations Brazil. Respect for these regulations has been heightened by the need to have a valid Kimberley Process Certificate before their rough diamonds leave, but there is still more that could be done to bring the same sense of order that exists today in the formal mining sector to the equally important diamond dealing sector.

58. A key commitment made by the diamond industry to other stakeholders in KPCS Section IV was the establishment of a voluntary system of warranties on rough diamond sales, underpinned through verification by independent auditors and supported by internal penalties. During the Brazil visit, the review team found no evidence that Brazil’s diamond industry has established a voluntary system of warranties. It found strong support among both large firms and the CoopMinas for the KPCS and willingness to help facilitate the traceability of diamond transactions by government authorities. The scale of dealing activity is thought to be much larger than previously believed, especially as the large numbers of illegally declared exports were apparently local market purchases and not from any registered diggings. If dealers were obliged to register and pay for an annual licence as they do elsewhere, they would be much less tolerant of those who work unofficially.

59. We heard differing views on the size of Brazil’s diamond polishing industry. There were three diamond polishing companies in Brazil who employed almost 2,000 workers at the peak of their success: Cindam, Kessuram, and Selig. Although all of those factories have now closed down, it is likely that some of their skilled workers have become self employed and are selling their polished diamonds locally.    60. No evidence was found during this peer review that diamonds from African conflict zones had reached Brazil. However, given the widespread smuggling and weakness of internal controls, the possibility exists that they may have done or could do so.

8. Statistics

61. Brazil became a KP Participant on October 31, 2003; however, statistical data submissions were received for the full year. Despite this, analysis and data reconciliation focuses primarily on data submission from January 1, 2004 onwards.

62. Brazil has met the minimum statistical requirements of the KPCS with respect to semi- annual production data, quarterly trade, and KPC count data. These data are entered onto the statistics web site, in a timely manner, directly by the Participant.

   

63. The DNPM is in charge of implementation of the KPCS in Brazil and carries out this function through 25 regional DNPM offices. Each office is responsible for collecting and processing the KPCS applications in its jurisdiction, including the verification of application information prior to the issuance of a KPC. Each regional DNPM office is responsible for submitting the verified application, by fax, to the head DNPM office in Brasilia, where KPCs are issued.

64. As part of the review visit to Brazil, a statistical report on Brazil’s production, trade, and

KPC count was prepared. In response, an explanatory document was prepared by Brazil and is included as Appendix III.

Production Statistics:

65. To date, all diamond production statistics for Brazil have been submitted. Production volume for Brazil is calculated using a combination of export certificate data and imputation. The KPC export statistics are thought by DNPM to represent approximately 80 percent of production within Brazil. The remaining 20 percent is a rough estimate of production levels. The basis for this 20 percent estimation comes from discussions that the regional DNPM officers have with operations. Production is calculated as, approximately:

• 80 percent of production coming from mining companies and legal garimpeiro

activities (e.g. CoopMinas) • 20 percent of production coming from all other diamond production not performed by

establishments or legal garimpeiros activities. 66. To further describe production volume calculations, an example using 2005 Brazilian data is as follows:

• Brazil total production volume in 2005 was 300,000 carats. • Brazil issued 75 KPCs (export certificates) with a total export volume of 278,863.19 carats. This volume is taken to represent approximately 80 percent of Brazil’s annual production (in 2005, this actually represents 9 percent). • The remaining production volume of 21,136.81 carats is an estimate collected from non-formal Brazilian operations.

67. Brazil is currently unable to establish accurate estimates of production levels within the country, given that data are based primarily on export information and no formal records of production levels exist. The DNPM should, as a priority, seek to identify the production capacities of each region. As for estimates for the value of production, Brazil uses an average value based on the semi-annual value of exports and multiplies this average by the semi-annual production volume for that same period. Since the review visit, production data for the first half of 2005 were reviewed by Brazil and changes made to the value of production based on the above calculations. Given the fact that Brazil does not sieve or sort any production or exports, a non-weighted average based on total value of exports are not an accurate assessment of production values.

   

68. An initiative mentioned to the review visit team indicated that a Cadastro Mineiro–census with diamond CoopMinas – would be carried out and provide information related to socio- economic data such as employment wages and levels, environment, etc. It is unclear as to whether this Cadastro survey will include information to determine production capacity levels. The Cadastro survey was due to be completed in July 2006.

69. Regarding production analyses, Brazil was able to clarify the large fluctuations in production value per carat through the example of a company which exported a single stone of 25.12 carats at a value of US $2 million.

Import/Export Statistics:

70. At the time of the review visit, all trade statistics for Brazil have been submitted. Export statistics for Brazil are based on KPC export certificate data and import statistics are based on advance notification data received from the exporting authorities shipping to Brazil. Brazil has put in place the Administrative Decision requiring the date of expiry of the KPC be no more than 60 days after issuance.

71. The data for imports into Brazil are based on advanced notification by the exporting authority and not on KP certificate data, as per the Administrative Decision on KPC-based statistical submissions. Brazil is now aware that advance notification by exporting countries is not mandatory and therefore the import data submitted by Brazil does not reflect the true nature of imports. The lack of rigorous KPC-based import data can easily be dealt with once Brazil receives all original import KPCs. This data can be received either through customs or directly from the Brazilian importer.

72. Brazil is a producer of both industrial and gem quality diamonds. They export under 7102.10, 7102.21 and 7102.31. Brazil does not have the infrastructure for diamond sorting and valuation in order to classify these rough diamonds correctly. They do not sieve, sort or value the rough diamonds and therefore diamond exports should not be classified, in the first instance, under HS codes 7102.31 as the diamonds are not sorted for market.

73. Many statistical anomalies between Brazil and its trading partners need to be followed up on an individual country basis. These discrepancies have been highlighted within the statistical review visit report and can be achieved through the data and tables available on the rough diamond statistics web site. Outcomes from these discussions can be shared with the Working Group on Statistics.

KPC Counts:

74. The DNPM in Brasilia is in charge of issuing KP Certificates. The certificate data are recorded and certificates printed in Brasilia then sent, by registered mail, to the regional DNPM offices. The total number of export KPC issued should be accurate given that issuance is from a single source (DNPM, Brasilia). As for import KPC counts, DNPM offices do not know the number of actual import certificates as these are not collected by any governing body.

   

75. During 2003-2005, Brazil used 184 certificates, of which 34 were voided due, primarily, to printing errors. One of the 34 certificates voided was due to an exporter who had not shipped the parcel of rough diamonds before the 60-day expiration date. This expired KPC has remained with the exporter and was not returned to the DNPM in Brasilia. No follow-up mechanism has been put in place to ensure that expired or unused certificates are returned to the DNPM. As indicated, Brazil does not collect import KP certificates. The lack of receipt of original import KPCs means these certificate counts may not reflect the true numbers of KPC entering the country. Bilateral reconciliation with KP exporters to Brazil can assist in determining the key information necessary for follow-up with Brazilian importers. In addition to being able to rectifying their import data, Brazil will also be able to send the confirmation of import from these certificates (through KPC tear-off or by email).

76. Despite the fact that Brazil statistics are focused mainly on 2004 and 2005 data, it is important to follow-up on outstanding KPCs for 2003. In 2003, no import KPC counts were recorded; however, import trade statistics were recorded. The lack of recorded KPCs should be explained for Canada, the EC, and the US, who indicate exports to Brazil. The DNPM needs to reform its KPC production process to eliminate the high level of print errors leading to a high percentage of cancelled certificates.

9. Regional issues

77. Since 2003, there have been reports that illicit trade in rough diamonds is occurring on a significant scale between the three KPCS Participants in South America (Brazil, Guyana, and Venezuela). These reports point to an illicit flow of rough diamonds originating in Brazil through Guyana on to world markets; there have also been allegations that significant quantities of Venezuelan rough diamonds are being smuggled out of Venezuela through Roraima State in Brazil.

78. Moreover, the Brazilian authorities have themselves repeatedly indicated to the KP their concern at the scope for illicit trade with Brazil’s neighbours, and have indicated (even well before the problems in Brazil’s diamond sector emerged) their willingness to coordinate with their Guyanese and Venezuelan counterparts on ways of addressing the illicit trade.

79. The review team did not investigate these allegations in detail. It is intended that a second review visit to Brazil later in 2006 (or in the beginning of 2007) will focus specifically on the situation in and around mining areas in the North and North-West of the country.

80. However, given the weaknesses in Brazil’s present system of internal controls, the lack of any internal regulation of diamond traders in Brazil, the lack f a cataloguing system to identify diamonds typical of different regions of Brazil and the long and remote borders traversing diamond areas between Brazil, Guyana, and Venezuela, the team believes there is indeed a significant risk of substantial illicit trading activity between the three countries in question.

81. The team believes that in order for the KP to obtain a more reliable overview of the scale of illicit rough diamond flows between Brazil, Guyana, and Venezuela, it would be desirable for a

   

review visit to be carried out at the earliest opportunity in Venezuela, in addition to a second review visit to Brazil.

82. The review visit team would also underline that in order properly to address the underlying causes of illicit cross-border diamond flows between Brazil, Guyana, and Venezuela; it is an urgent priority to initiate a dialogue at the technical level between the KP authorities and other relevant agencies in the three Participants. Such a dialogue could be initiated by a technical meeting to be hosted by one of the three Participants, under the auspices of (and if necessary with the assistance of) the KP. The team believes that such a meeting would moreover be consistent with the objectives, and practice, of the KP’s sub-group on alluvial production, and would allow the proper dissemination among Participants in the region of best practices identified within the sub-group. Conversely, it would allow Participants in the region to feed best practices identified in their respective systems more effectively into the wider sub-group.

83. The Brazilian authorities indicated to the team their willingness to participate in a technical meeting with Guyana and Venezuela in the near future, and indeed to host such a meeting in Boa Vista. The team understands that the authorities in Guyana similarly expressed their willingness to participate in a regional meeting to the KP review visit team that visited Guyana from 2 to 4 May 2006. The team recommends that the Chair of the KP and the Chair of the Working Group on Monitoring facilitate the arrangement of such a meeting at the earliest opportunity.

10. Recommendations

Recommendations for Brazil: 1. The recommendations of Brazil’s Summary Audit Report address many of the failings that

made possible the fraudulent activities and exports. The review team endorses those recommendations and urges the DNPM present a formal report to the KP plenary in November 2006 on the progress towards implementation.

2. A legal requirement for regular on-site inspections of diamond production sites by the

DNPM should be introduced for all categories of mining concessions, including those that cover artisanal output. SAR recommendation (9g) states that these regular site visits be carried out by the DNPM staff at least once every six months. DNPM personnel should file written reports of their on-site inspections that detail observable production, potential production, check sales records, and confirm any inventories at the site. Sites should have been visited by the DNPM prior to acceptance of applications for KPC in line with SAR Recommendations (9i) and (9o).

3. In line with SAR recommendation (9e), a regulation should be adopted to require monthly

production statistics from all mining sites be sent to DNPM’s KP team in Brasilia to be entered into a computer-based system for analysis and background for future DNPM site visits and to have a more solid basis for semi-annual production figures reported to the KP statistical web-site. As further recommended in SAR recommendation (9e), the monthly data sent to the DNPM should include quantity and value of production, where the production had been sold, and a legal declaration by the responsible mining official that the

   

production had been produced at that site. Also, as noted in SAR recommendation (9e), the mining site operators should keep complete records of monthly production at the mine site, and the name, address, and tax identification number of the first buyer.

4. Brazil should require rough diamond parcels to be sieved out into easy to monitor industry

sizes rather than exported as a mixed bag of run of mine. All special stones above 5 carats listed separately and all fancy colours of any size recorded as items of importance.

5. In line with SAR recommendation (5), a photographic profile/data base of the diamond-

producing regions of Brazil should be established that would be readily accessible to DNPM and Customs officials to make mixing diamonds from outside the region more difficult. Additionally, in line with recommendation (9b), the mixing of rough diamonds from distinct mining regions should be prohibited.

6. In line with SAR recommendation (9c), adequate numbers of customs agents and DNPM

officials should be trained to assess declared value of both imported and exported rough diamonds shipments in line with SAR recommendation 10. As an interim measure, while local valuation capacity is being developed, request that Belgium Customs, to check the value of the parcel against the Kimberley Process Certificate issued by Brazil. Such a procedure would discourage dealers and/or exporters from under or over declaring their shipments.

7. In line with the SAR recommendations (9m) and (9p), a National Registry of Diamond

Dealers and Exporters, should be established. We recommend that all diamond buyers/sellers, importers and exporters be licensed and registered in a computerized data base and required to keep detailed records of their daily transactions, and bills of sales, which would be subject to government audits. We recommend that in designing this system, the authorities should consider the recommendations in KPCS Annex II paragraphs 13-16.

8. Proposed government regulation of the diamond industry through the National Registry of

Diamond Dealers should be completed. Government authorities should meet with the diamond industry to establish a voluntary industry system of warranties to attest that rough diamonds sold are not conflict diamonds. This written warranty would be required to be provided by the seller each time a rough diamond was sold, just as the Nota Fiscal is required. This industry self regulation is an important element of the KPCS which has been shown to help facilitate full traceability of rough diamond transactions by government authorities in other KP participants countries. Industry self-regulation should be guided by principles contained in KPCS Section IV.

9. Either the importer or a government agency should be required to retain the original

incoming KP certificate for a period of at least three years, consistent with KPCS requirements.

10. A system to provide timely import confirmations by the DNPM to exporting countries

should be implemented.

   

11. Given the relatively small number of KP certificates issued per year, Brazil should consider centralizing the processing of KP certificates by the highly specialized and trained KP team that will operate in Brasilia. Ensure that copies, including voided KPCs, be kept in the safe at the DNPM in Brasilia. Enhance security controls over the physical issuance and the KP database.

12. The Brazilian KP certificate should identify the rough diamond importer and exporter,

including complete address information, a minimum KP requirement, before DNPM issues the certificate. Our review of scanned KP certificates indicated this important information was not included on the KP certificate. The Brazilian KP certificate should identify the number of parcels in the shipment, a minimum KP requirement, before DNPM issues the certificate.

13. Given the fact that the Receita Federal has not issued a replacement KP certificate, but has

been given 1,000 KP certificates, Brazilian authorities should consider centralizing all KP certificates in DNPM headquarters in Brasilia. In the rare event, that a replacement certificate is needed, Receita Federal would request the DNPM send a replacement certificate.

14. Brazil should ensure that any KP certificate not exported within the maximum 60-day period

be returned to the DNPM in Brasilia. The DNPM should develop a system of oversight to ensure the returns take place. It is recommended that the DNPM review and amend its KP certificate production process to eliminate the simple print errors which have led to a high percentage of cancelled certificates.

15. Brazil should institute a system in which future rough diamond import data based on the KP

certificate is reported in a timely fashion to the statistical authorities either by Customs or by the importer.

16. At a minimum, Brazil should follow-up on all 2005 imports, using KP trading partners’

export authority information, in order to obtain copies of all these KPC. Brazil should put in place a mechanism to collect these certificates immediately upon entry into the country. Once the import KPCs have been recovered, Brazil should update all import KPC counts and import trade data for 2005 and onwards.

17. Significant trade statistical anomalies should be cleared up by requesting bilateral

reconciliations with the largest trading partners, including the U.S., EC and Israel. 18. Brazil should consider the introduction of more severe penalties, including custodial

penalties, for the most serious infringements of legislation implementing the KPCS. 19. Brazil should review best practices in other alluvial-producing countries to evaluate the

benefits to Brazil of collecting a 2 percent export duty from dealer exporters at the time of issuance of a Kimberley Certificate. Formal mining companies in other Participants are often exempted as they pay taxes in other ways, but dealers in other Participant diamond-producing countries pay between 2 and 3 percent as it is known that smuggling costs them one percent

   

and they now need to have the Kimberley Certificate to be legal in their country of final selling.

20. Operacao Carbono has shown that it is essential for the government to increase the focus of

the DNPM to include buying activity which had been regarded as a matter solely for the Ministry of Development, Industry and Foreign Commerce through its Secretaria de Comércio Exterior (SECEX)].

21. Brazil should seek to clarify the number of diamond garimperos.

Recommendations for other Participants in the region

22. Brazil, Guyana and Venezeula should work together to address the underlying causes of

illicit cross-border diamond flows between Brazil, Guyana and Venezuela. Given the problems identified by the Brazilian authorities and by the Guyanese authorities (see Guyana KP Review Visit Report) the three countries should initiate a dialogue at the technical level between the KP authorities and other relevant agencies in the three Participants.

23. Brazil should initiate a process to strengthen its ability to control entry of diamonds by land,

including instituting regular coordination and information sharing meetings with Guyana and Venezuela. Priority attention should be given to establishing better border control in the triangle area of Boa Vista (Brazil), Lethem (Guyana), and Santa Elena de Uairén (Venezuela).

24. Venezuela should be encouraged to invite a review visit, and such a review visit should

examine the scope for illicit trade between Venezuela and Guyana. Similarly, a second review visit to Brazil should examine the scope for illicit trade between Brazil, Guyana, and Venezuela.

25. KP Participants in South America (Brazil, Guyana, and Venezuela) should be encouraged to

initiate a regional dialogue on cross-border issues in the diamond sector. Such a dialogue could be initiated by a technical meeting to be hosted by one of the three participants, under the auspices of (and if necessary with the assistance of) the KP.

26. In the long term, Guyana, Brazil, and Venezuela might consider ways of moving towards a

common diamond export regime and collect an identical level of export duty (and one that is more comparable to pan-African rates) for their diamonds.

Recommendations for the Chair of the Kimberley Process

27. Brazil, as leader of the sub-group of South American alluvial producers has been trying,

without success, to arrange a meeting with Venezuela and Guyana authorities to discuss regional Kimberley Process issues. We urge the Chair to send a letter to KP authorities in Venezuela and Guyana urging them to meet with Brazil as soon as possible. The Chair should also request a joint report of the meeting results be provided to the Chair of the Monitoring Committee.

   

12. GLOSSARY

Cadastro Mineiro – System which links information about the mining process. Cooperatives (Garimpos) – Mining cooperatives - CoopMinas for Garimpeiros.

DACESS - Divisão de Acesso a Mercados (DACESS - MRE) Division of Market Access (DACESS - MRE)

DNPM - Brazil’s National Department of Mineral Production.

DPF - Departamento de Policia Federal (DPF) of the MF.

Garimpeiros - unlicensed diggers

MF - Ministério da Fazenda - Ministry of Finance MDJ – Ministério da Justicia - Ministry of Justice

MDIC - Ministério do Desenvolvimento, Indústria e Comércio Exterior - Ministry of Development, Industry and Foreign Trade.

MPF - Ministério Público Federal - Federal Public Prosecutor’s Office.

MME - Ministério do Minas e Energia - Ministry of Mines and Energy.

MRE - Ministerio das Relações Exteriore (MRE) - Ministry of Foreign Relations

Operação Carbono - The law enforcement operation to investigate the diamond sector, code named Operação Carbon, involved nearly 260 Federal Police and 50 agents of the Receita Federal.

Small-Scale Mining (Garimpo) cooperatives - CoopMinas are organized to perform exploration and exploitation/mining on small-scale mining reserves and deposits (mostly alluvial diamonds, gold, and tin).

PLGs - Permissões de Lavra Garimpeiras provided by the Federal Government via Law no. 7,805/1989 to Cooperatives in order to formalize the activities of the garimpeiros.

SAR – Executive Summary of the Special Audit Report of the Kimberly Process Certification Scheme in Brazil.

SECEX - Secretaria de Comércio Exterior (MDIC). Ministry of Development, Industry and Foreign Commerce  

   

 

SGM – Secretaria de Geologia, Mineração e Transformação Mineral. – Ministry of Geology, Mines and Mineral Processing.

SRF – Secretaria da Receita Federal - Internal Revenue Secretariat of the MF.

   

MINISTRY OF MINES AND ENERGY SECRETARIAT OF GEOLOGY, MINING, AND MINERAL PROCESSING

Kimberley Process Review Visit to Brazil Brasília – Ministry of Mines and Energy

Monday, 24 April 2006

PROGRAM

09:00 – 09:10h Welcome Address: Secretary of Geology, Mining, and Mineral Processing – SGM

09:10 – 09:40h The Ministry of Mines and Energy and the Kimberley Process

Claudio Scliar – Secretary of the SGM

09:40 – 09:55 Queries

09:55 – 10:10h The DNPM and the Kimberley Process Miguel Antônio Cedraz Nery – Director-General of the DNPM

10:10 – 10:25h The Geological Survey of Brazil(CPRM),and the Kimberley Process

Reinaldo Brito – Head of Department of the CPRM

10:25 – 10:40 Queries

10:40 – 10:55h The Ministry of Justice and the Kimberley Process Marcilândia Araujo – Coordinator-General of the Ministry of Justice

10:55 – 11:10 Queries

11:10 – 11:25h The Secretariat of the Federal Revenue (SRF) and the KP

Marco Aurélio Mucci Mattos – Head of Division of the SRF

11:25 – 11:40 Queries

11:40 – 11:55h The Ministry of the External Relations (MRE) and the KP José Antônio Cury G. Braga – Secretary of the MRE/DACESS

11:55 – 12:10 Queries

12:10 – 12:25h The Ministry of the Development, Industry and Foreign Trade (MDIC), and the

PK.

12:25 – 12:40 Ieda Ferreira Fernandes – Adviser of the DECEX – MDIC Queries

12:40h – 14:40h Lunch

   

MINISTRY OF MINES AND ENERGY SECRETARIAT OF GEOLOGY, MINING, AND MINERAL PROCESSING

Kimberley Process Review Visit to Brazil Brasília – Ministry of Mines and Energy

Monday, 24 April 2006 DNPM

15:00 – 15:15h Operation Carbon Jorge Maria Fonseca – Federal Police Officer – MJ/PF

15:15 – 15:30h Queries

15:30 – 15:45h The Work Group of the Special Audit PK/DNPM

João César de Freitas Pinheiro – Deputy Secretary-General of DNPM

15:45 – 16:00h The rough diamond in Juína – Mato Grosso Jocy Gonçalo de Miranda – Head of DNPM District – MT

16:00 – 16:15h The rough diamond in Rondônia-RO

Deolindo Neto - Head of DNPM District - RO

16:15 – 17:15h Discussion and queries on DNPM certification activities, the process of the certificate’s emission, as well as problems that Brazil has been facing related to those emissions, and which improvements DNPM has been carrying out.

17:15 – 18:00h Discussions and queries on statistics problems.

Tuesday, 25 April 2006

PROGRAM 07:00h Trip to Coromandel

Departure from Melia Brasilia Hotel (bus of the company TRESMIK) 12:00h Lunch (probably on the road)

14:00 – 14:30h Visit to a Center of Support to Small-Scale Miner

14:30 – 15:30h Meeting with miners, owners of mineral rights, representatives of artisanal miners

and syndical leaderships 15:30 – 18:00h Visit two productive rough diamond areas

20:00h Dinner offered by the Town hall of Coromandel

Overnight in Coromandel – Hotel D. Adélia

Wednesday, 26 April 2006 PROGRAM

07:15 – 09:05h Trip to Patos de Minas, by bus

10:10 – 11:00H Trip to Belo Horizonte, TO-5557

   

12:00 – 14:00h Lunch 14:00 – 15:00h Visit to DNPM Ofice

15:00 – 17:00h Visit to Belo Horizonte Customs

19:00h Work dinner offered by the entrepreneurs.

Federation of the Industries of the State of Minas Gerais (FIEMG)

Overnight in Belo Horizonte – Liberty Palace Hotel

Thursday, 27 April 2006 PROGRAM

07:00h Trip to Diamantina Departure from Liberty Palace Hotel (Rua Paraíba, 1465)

12:00h Lunch (probably on the road)

13:00 – 18:00h Meeting with the Co-operative of the Garimpeiros of Diamantina Visit to a productive diamond area

20:00h Dinner offered by the local entrepreneurs

Overnight – Hotel Pousada do Garimpo

Friday, 28 April 2006 PROGRAM

07:00 Trip to Belo Horizonte Departure from Hotel Pousada do Garimpo

12:00h Lunch (probably on the road)

14:25h Trip Belo Horizonte – Brasília (JJ-3149)

Overnight Brasília – Hotel Melia

Saturday, 29 April 2006 PROGRAM

09:00 – 12:00h Meeting in SGM to evaluate the visit’s results and to propose guidelines for the

improvement of the implementation of KP in Brazil.

Overnight in Brasília or departure to origin country

   

RELATÓRIO  DA  AUDITORIA  ESPECIAL   CERTIFICAÇÃO  DO  PROCESSO  KIMBERLEY  NO  BRASIL  

SUMÁRIO    EXECUTIVO                

PORTARIA  CONJUNTA  SGM-­‐-­‐-­‐MME/DNPM  Nº  25,  DE  14/02/2006  

DOU  DE  15/02/2006  

PORTARIA  CONJUNTA  SGM-­‐-­‐-­‐MME/DNPM  Nº  65,  DE  16/03/2006  

DOU  de  17/03/2006  

PORTARIA  CONJUNTA  SGM-­‐-­‐-­‐MME/DNPM  Nº  81,  DE  03/04/2006  

DOU  de  05/04/2006  

   

 Brasília,  maio  de  2006.  

 

I) INTRODUÇÃO        O   presente   documento   apresenta   um   sumário   sobre   o  Relatório   da  Auditoria   Especial   designada  pelas  Portarias   em    epígrafe,   pelas   autoridades   que   instituíram   o   versado   Grupo   de   Trabalho,tendo   como  objetivo   a   implementação   de   diretrizes   e   procedimentos,   no   sentido   de   superar   eventuais  vulnerabilidades   e   promover   o   aperfeiçoamento   do   sistema,   bem   como   adotar   providências   junto   ao  Ministério  Público  e  Polícia  Federal  e  demais  entidades  mencionadas.    Inicialmente,   cumpre   ressaltar  que  a  Lei  nº  10.743,  de  9  de  outubro  de  2.003  afirma  que  o  Sistema  de  Certificação  do  Processo  de  Kimberley  -­‐-­‐-­‐  SCPK  refere-­‐-­‐-­‐se  a  todas  as  atividades  internacionais  relacionadas  à   certificação   de   origem   de   diamantes   brutos,   visando   impedir   o   financiamento   de   conflitos   pelo   seu  comércio,  e  que,  na  exportação,  o  SCPK  visa  impedir  a  remessa  de  diamantes  brutos  extraídos  de  áreas  de  conflito   ou   de   qualquer   área   não   legalizada   perante   o   Departamento   Nacional   de   Produção  Mineral   –  DNPM.    Do  ponto  de  vista  do  governo,  a  implantação  do  SCPK  no  Brasil  teve  como  principais  objetivos:    1) Garantir  o  acesso  legal  da  produção  brasileira  de  diamantes  brutos  ao  Mercado  internacional;    2) Controlar  e   impedir  a  entrada,  no   território  nacional,  de  diamantes  brutos  originários  de  países  não  participantes  do  Processo  Kimberley,  ou  de  países  participantes  mas  sem  o  Certificado  Kimberley;    3) Proibir   e   impedir   a   exportação   de   diamantes   brutos   produzidos   no   Brasil   sem   Certificado   do   Processo  Kimberley  -­‐-­‐-­‐  CPK;    4) Servir  de  Instrumento  para  regularizar  a  atividade  mineradora  e  garimpeira   informal  de  extração  de  diamantes  brutos;    No  contexto  em  que  se  deu  a  aprovação  da  Lei,  em  2003,  o  DNPM  recebeu  esta  nova  atribuição,  sem  que  a  Autarquia   estivesse   suficientemente   aparelhada   para   atender   ao   conjunto   das   demandas   do   setor  mineral.  O  sucateamento  da  estrutura  administrativa  do  DNPM  ocorrido  desde  a  sua  transformação  em  Autarquia   no   ano   de   1994   pelo   Governo   anterior,   dificultou   a   que   a   instituição   respondesse   na   sua  plenitude  ao  conjunto  de  atribuições  que  lhe  foram  estabelecidas.  O  atual  Governo  na  tentativa  de  sanar  as  debilidades  institucionais  vem  implementando  no  DNPM   políticas  de   aparelhamento  e  modernização  da   sua   estrutura   de   gestão,   a   exemplo   a   implantação   de   plano   de   carreira   e   realização   de   concurso  público,  fato  este  que  não  ocorria  a  cerca  de  vinte  e  sete   anos.  Desta  forma,  os  procedimentos  de  emissão  do  CPK  foram  mais  voltados  para  fomentar  a  exportação  regular  de  diamantes  e  para  a  formalização  das  outorgas  minerais.    Apesar  das  dificuldades,  o  sistema  de  certificação  do  Processo  de  Kimberley  -­‐-­‐-­‐  SCPK  implantado  no  Brasil  atingiu   parcialmente   seu   objetivo,   Portanto,  o   SCPK   brasileiro   permitiu   que   o   Brasil   possuísse   um  controle   da   produção   e   exportação   de   diamantes   brutos,   sem   o   que   a   própria   auditoria   teria  dificuldades  de  obter  as  informações  levantadas.  

   

 I) SUMÁRIO     EXECUTIVO    A  Auditoria  reconheceu  que  por  meio  do  cruzamento  das  notas  fiscais  representativas  da  compra  dos  diamantes  e  sua  venda  ao  exportador,  é  possível  mostrar  a  cadeia  de  relações  neste  negócio,  o  que  contribui   para   que   órgãos   públicos   como   o   Ministério   Público   Federal   e   o   Departamento   de   Polícia  Federal   possam   melhor   elucidar   os   fatos,   assim   como   o   próprio   DNPM.   As   fraudes   externas  constatadas  pela  auditoria  só  puderam  ser  identificadas  por  meio  dos  dados  extraídos  dos  autos  dos  processos.    A  auditoria  afirmou  que  o  procedimento  de  certificação  apresenta  inversão  procedimental  anômala,  uma  vez  que  a  autoridade  hierarquicamente  superior  –  Diretor-­‐-­‐-­‐Geral  do  DNPM  –  assina  o  CPK  (Certificado  do  Processo  de  Kimberley)  antes  de  qualquer  confirmação  dos  dados  declarados  pelo  exportador,  ficando  a  decisão   de   emissão   do   certificado   concentrada   na   mão   de   autoridade   hierarquicamente   inferior,   qual  seja:  Chefe  do  Distrito.    Foi   afirmado   haver   ausência   de   controle   no   âmbito   do   procedimento   implantado   para   a  certificação   e   de   que   inexistia   gestão   administrativa   no   sentido   de   controlar   e   avaliar   as   certificações  brasileiras  não  considera  o  significativo  esforço  do  atual  Governo  em  recuperar  a  capacidade  de  gestão  do  Estado  por  meio  do  DNPM,  bem  como  todos  os  investimentos  realizados  no  processo  de  modernização  institucional.  A  Autarquia  tem  buscado  desenvolver  ações  de  inteligência  de  fiscalização,  incluindo,  para  tanto,  inúmeros  seminários  e  oficinas  de  trabalhos  realizados,  inclusive  com  a  Polícia  Federal.  A  proposta  de  modernização  da  gestão  apresentada  pela  FIA  (Fundação  Instituto  de  Administração  da  Universidade  de  São  Paulo)  contempla  no  seu  relatório  final   aspectos  da  própria  estrutura  organizacional.    Foi   constatada   a   ausência  de   vistoria  prévia   à   emissão  dos   certificados   –  uma  vez  que  o   procedimento  visa   identificar   a   origem   dos   diamantes   objeto   de   exportação,   além   da   capacitação   deficiente   dos  servidores   para   fins   de   avaliação   das   pedras.   Após   o   Seminário   realizado   com   a   Polícia   Federal   em  dezembro  de  2004   foi  feita  essa  recomendação,  mas  no  3º  Distrito  de  Minas  Gerais  essa  recomendação  não  foi  implementada.  Tendo  em  vista  que  o  SCPK  visa  identificação  da  origem  dos  diamantes  brutos,  objetivo   nem   sempre   atingido   com   os   mecanismos   de   controle   adotados   até   aqui   e,   considerando   a  natureza  das  lacunas  existentes  no  sistema  de  certificação  implantado  no  Brasil,  há  necessidade  de  uma  nova   configuração   na   gestão   administrativa   do   sistema,   com  uma  nova   estrutura   regimental  para   o  Departamento  Nacional  de  Produção  Mineral,   assim  como  a   adoção  de  outros  mecanismos  de   controle  para  o  SCPK  brasileiro.    Ainda  que  o  DNPM  tenha  sido  informado  sobre  eventuais  vulnerabilidades  no  SCPK  no  Brasil,  é  fato  que  não   foram   envidados   esforços   no   sentido   de   identificação,   análise   e   eventual   solução   dessas   falhas.   A  análise  desenvolvida  acerca  do   certificado  nº  64,  ocorrida   cerca  de  6  meses  após  denúncia  do   fato  por  autoridade,   demonstram   a   fragilidade   e   a   ineficiência,   especialmente   no   Distrito   de   Minas   Gerais   em  cumprir  ao  conjunto  das  atribuições  relativas  ao  CPK.    Com  a   identificação  da  prática  de  atos  administrativos  e   indícios  de  condutas   irregulares  e   ilegais  e,  até  mesmo,   tipificadas   criminalmente,   ponderando-­‐-­‐-­‐se   o   fato   de   que   um   mesmo   comportamento   pode  produzir  efeito  no  âmbito  de  esferas  jurídicas  distintas,  quais  sejam:  administrativa,  civil  e  penal,  sobre  as  considerações  pertinentes  a  cada  uma  dessas  esferas  tem-­‐-­‐-­‐se  os  seguintes  comentários:    a) No  âmbito  administrativo,  apresenta-­‐-­‐-­‐se  necessária  a  adoção  de  uma  série  de  medidas  pela  Diretoria-­‐-­‐-­‐  Geral  do  Departamento  Nacional  de  Produção  Mineral  –  DNPM  com  fins  de  saneamento  dos  processos  administrativos   e   eventual   responsabilização   dos   servidores   envolvidos,   as   quais   devem   ser  imediatamente     implementadas.    Com   fins  de   saneamento  dos  processos,  deverão  ser  anulados  os   títulos  minerários  outorgados  no  âmbito  dos  autos  de  mineração  nº  833.476/2003  e  833.479/2003,  tendo  em  vista  que  as  permissões  

   

de  lavra  garimpeira  foram  outorgadas  em  favor  de  pessoa  física  à  época  falecida:  Fábio  Tadeu  Dias  de  Oliveira,  conforme  faz  prova  certidão  de  óbito  em  anexo  ao  relatório.    Também   devem   ser   invalidados   os   títulos   minerários   outorgados   no   âmbito   dos   autos   de  mineração    nº    831.973/2002,    831.710/1999,    867.577/2005,    866.156/2001,    866.614/2004    e  866.961/1994  ou,   se   possível,   adotadas  medidas   para   saneamento   dos   feitos;   tendo   em   vista   que   em  todas   as   áreas   desses   processos,   a   vistoria   realizada   pela   equipe   operacional   da   auditoria   constatou  extração   ilegal   de   diamantes,   ora   em   local   não   autorizado   pelo   título   minerário,   ora   em     montante  superior  ao  autorizado  por  guia  de  utilização,  devendo  ser  adotadas  as  medidas  administrativas  cabíveis.    Constatada   a   utilização   dos   processos   de   mineração   de   autos   nº   860.122/2003,   860.123/2003,  833.477/2003,  833.478/2003  e  831.972/2002  supostamente  para  práticas   irregulares  e   ilegais,  DNPM  deverá  adotar  as  medidas  administrativas  necessárias  à   invalidação  dos  títulos  minerários.  Para  adotar  as  medidas  de  nulidade  de  títulos  indicadas,  deverá  o  DNPM  observar  o  poder-­‐-­‐-­‐dever  de  autotutela  da   Administração   Pública   garantindo-­‐-­‐-­‐se   aos   envolvidos   os   princípios   constitucionais   do  contraditório  e  da  ampla  defesa.    Embora   haja   a   constatação   de   extração   ilegal   de   diamantes   nas   áreas   dos   processos   de   autos   nº  833.476/2003,        833.479/2003,        831.973/2002,        831.710/1999,        867.577/2005,        805.982/1972        e  866.961/1994,   a   despeito   dos   certificados   de   kimberley   emitidos   com   fundamento   nestes   processos  terem  certificado  diamantes  frutos  de  extração  ilegal,  não  é  possível  sua  invalidação  em  decorrência  dos   efeitos   produzidos   por   estes   atos   administrativos   terem   ultrapassado   o   âmbito   da   ordem  jurídica   interna,   em   razão   da   exportação   dos   diamantes   certificados.   Assim,   não   há   que   se   falar   em  anulação  dos  certificados  enumerados  com  fundamento  no  princípio  da  segurança  jurídica  que  há  de  ser  preservado  nas  relações   firmadas  pelo  Brasil  e  demais  Estados  soberanos  no  âmbito  da  ordem   jurídica  internacional.    Na  esfera  administrativa  ainda,  a  Auditoria  afirma  que  deve  ser  apurada  a  eventual  responsabilização  de   servidores   do   Departamento   Nacional   de   Produção   Mineral   envolvidos   no   procedimento   do  Sistema   de   Certificação   do   Processo   de   Kimberley   –   SCPK.  No   âmbito   do   Distrito   de   Minas   Gerais,   a  comissão   de   auditoria   sugere   a   instauração   de   processo   administrativo   disciplinar,   com   fins   de  apuração  de  responsabilidades  identificadas  no  âmbito  dos  processos  administrativos  de  certificação  do  Processo   Kimberley,   inclusive   os   que   culminaram   na   emissão   dos   certificados   nºs  25,   26,   29,   39,   com  fundamento  nos  artigos  143  e  148  da  Lei  8.112/1990.    Em  razão  da  relevância  do  Sistema  de  Certificação  do  Processo  de  Kimberley,  assim  como  a  gravidade  das  condutas   apontadas   na   análise   da   auditoria   a   Auditoria   sugere   que   seja   procedida   nomeação  imediata  de  novo  Chefe  para  aquela  unidade  regional  do  DNPM    Na  composição  da  comissão  do  processo  administrativo  disciplinar  sugerido,  como  forma  de  assegurar  a  imparcialidade  na  apuração  das  condutas,  os  servidores  efetivos  do  3º  Distrito/MG  não  deverão  ser  utilizados.    É  imprescindível  que  a  documentação  extraída  dos  autos  administrativos  de  certificação  de  kimberley  por   servidor   do   3o  Distrito   deverá   ser   encaminhada   imediatamente   ao   Presidente   do   inquérito  policial   relativo   à   Operação   Carbono   do   Departamento   de   Polícia   Federal/MG,   tendo   em   vista   a  existência  de  mandado  judicial  que  determinou  sua  apreensão.    Considerando  as   informações  prestadas  pelo   Sr.   José  Carreteiro,   acerca  da  produção  mineral   nas  áreas  dos   autos   nº   826.339/2002   e   826.052/2003,   indicados   como   de   origem   dos   diamantes   objetos   dos  certificados   de   kimberley   nºs  107,   002,   088,   134,   a   comissão   de   auditoria   entende   que   deva   haver   a  instauração  de  sindicância  para  fins  de  apuração  da  origem  dos  diamantes  vinculados  aos  citados  processos.  

   

Da   análise   das   condutas   praticadas   pelos   geólogos   Marcos   Vinicius   Cardoso   e   Carlos   Alberto   Barone   no  âmbito   dos   processos   de   mineração   de   autos   nºs.   831.972/2002,   833.476/2003,   833.477/2003  833.478/2003   e   833.479/2003   eventualmente   materializam   condutas     tipificadas     no     art.299     do     Código  Penal   –   falsidade   ideológica   -­‐-­‐-­‐   deverá   ser   efetuado   o   encaminhamento   de   ofício   ao   Conselho   Regional  de   Engenharia   e   Agronomia-­‐-­‐-­‐CREA,   para   fins   de   adoção   das   medidas   administrativas   relativas   à  aplicação  de  penalidades  em   razão  das  condutas   incompatíveis   com  o   exercício  profissional.    Considerando   os   indícios   de   condutas   irregulares   e/ou   tipificadas   criminalmente   pela   legislação   pátria  praticadas   pelo   Tabelionato   de   Notas   do   Distrito   de   São  Miguel   Paulista,  deve   ser   enviado   ofício   ao  Poder  Judiciário  do  Estado  de  São  Paulo  para  fins  de  adoção  das  medidas  pertinentes.    b) Na   esfera   civil,   tendo   em   vista   que   as   extrações   de   diamantes   brutos   ocorridas   nas   áreas   dos  títulos   autorizativos   referentes   aos   autos   nº   831.973/2002,   831.710/1999,   867.577/2005,  866.156/2001,  866.614/2004  e  866.961/1994   transcorreram  de   forma   irregular,   todo  o  produto  da   lavra   extraído   ilegalmente   destas   áreas,   o   foi   em   prejuízo   da   União   Federal,   a   quem   toca   a  dominialidade  dos  recursos  minerais  do  subsolo  –  art.20,   inc.IX  da  Constituição  da  República  de  1988  –  razão   pela   qual   há   de   se   remeter   ofício   à   Advocacia   Geral   da   União   para   aforamento   de   ação  indenizatória  do  montante  objeto  de  usurpação.    c) Na   esfera   criminal,   sobrelevando   que   os   fatos   apurados   pela   comissão   de   auditoria   guardam  pertinência   com   o   objeto   de   investigação   da   Operação   Carbono,   ora   em   andamento,   no   âmbito   do  Departamento   de   Polícia   Federal   -­‐-­‐-­‐   DPF,   torna-­‐-­‐-­‐se   necessário   o   encaminhamento   de   cópia  reprográfica   integral   do   referido   relatório,   incluídos   seus   anexos,   ao   DPF   e   Ministério   Público  Federal,  nas  pessoas  dos  profissionais  responsáveis  pela  Operação  Carbono.    III)  DAS  PROPOSIÇÕES    Concluídas   as   análises   relativas   as   repercussões   penais,   administrativas   e   civis,   e   uma   vez   apuradas   o  conjunto  das  fraudes  no  âmbito  dos  processos  administrativos  de  certificação  do  Processo  de  Kimberley,  se  faz  necessária  a  remessa  de  cópia  integral  do  relatório  à  Secretaria  da  Receita  Federal,  com  fins  de   aplicação   da   penalidade   prevista   no   art.10   da   Lei   10.473,   de   9   de   outubro   de   2003.  O  ofício  destinado   à   Receita   Federal   deverá   destacar   os   indícios   constatados   no   exercício   do   comércio  pelas   pessoas   jurídicas:   Sul   Oeste   Mineração   Ltda.;   Mineração   Serra   Grande   S.A.;   Morgan  Mineração  Ind.  e  Com.Ltda.;  Itafort-­‐-­‐-­‐Ind.e  Com.  de  Minerais  Ltda.;  Mineradora  São  Francisco  Ltda.;  Minas  Diamante  Ltda.;  Mineração  São  Judas  Ltda.  e  R  &  V  Mineração  Ltda;    O   nome   das   pessoas   jurídicas   aludidas   no   parágrafo   anterior   deverá,   da   mesma   forma,   ser  encaminhado,   via   ofício,   à   Junta   Comercial  para   adoção  de  medidas   administrativas   que   este   órgão  entender  cabíveis.    Ao  final,  a  comissão  de  auditoria  sugere  seja  formalmente  retificado  o  posicionamento  do  Brasil  adotado  na  Plenária  do  Sistema  de  Certificação  do  Processo  Kimberley  na  cidade  de  Moscou  na  Rússia,  entre  os  dias   14   a   17   de   novembro   de   2005,   quando   a   delegação   brasileira   refutou   as   denúncias   de  irregularidades  levantadas  pela  Parternship  África  Canadá  –  PAC  referente  ao  CPK  nº  64.    Deverá  ser  elaborada  uma  nova  moldura  de  gestão,  com  delegação  de  competências,  subordinada  à  Direção-­‐-­‐-­‐Geral  do  DNPM  e  à  Diretoria  de  Fiscalização,  com  o  objetivo  de  permanentemente  conferir  suporte  às  unidades  descentralizadas  da  Autarquia  Federal  na  emissão  dos  certificados.    Torna-­‐-­‐-­‐se  necessária,  a  reformulação  do  procedimento  de  emissão  dos  certificados  atualmente  previsto  no   âmbito   da   Portaria   nº   209,   de   05   de   agosto   de   2005,   com   a   criação   de   rotinas   internas   a   serem  seguidas   pelas   unidades   descentralizadas   em   havendo   ou   não   produção   de   diamantes   em   sua   área   de  jurisdição.   O  novo  procedimento  não  necessariamente  implicará  em  se  transportar  para  Brasília  os  lotes   de   diamantes   a   serem   certificados,   mas   deverá   ser   corrigida   a   inversão   existente   no  procedimento  atual  que  permite  o  controle  da  emissão  do  certificado  pela  autoridade  do  Distrito/DNPM  

   

em   lugar   do   Diretor-­‐-­‐-­‐Geral   da   Autarquia,   com   a   adoção   do   pré-­‐-­‐-­‐lacre.   Nessa   linha   de   raciocínio,   o  procedimento   a    ser   criado   deverá   prever    o   encaminhamento   do   processo   de   certificação   originado  na   unidade   descentralizada   à   sede   da   Autarquia   para   análise   da   Diretoria-­‐-­‐-­‐Geral   e   emissão   do  certificado,   em   substituição   aos   procedimentos   atuais.    Do  que  precede,  o  DNPM  deverá  adotar  as  seguintes  providências:    1) Cancelar  as  PLGs  de  titulares  que  sejam  comprovadamente  fraudulentas  “laranjas”;    2) Determinar  que  as  emissões  dos  certificados  sejam  condicionadas  à  prévia  vistoria  das  áreas  indicadas  como  de  origem  dos  diamantes  destinados  à  exportação,  depois  de  analisados  os  processos  de  mineração  relacionados.    3) Criar  um  Setor  de  Emissão,  Monitoramento  e  Controle  do  SCPK  em  Brasília  com  representações  nos  Distritos  onde  ocorra  produção  de  diamantes  brutos  para  exportação,  envolvendo  um  Grupo  Executivo  de  Técnicos  do  DNPM,  subordinado  à  Diretoria  de  Fiscalização,  com  o  objetivo  de  se  aprofundar  em  todos  os  detalhes  da   indústria  do  diamante  –  pesquisa,  extração,  beneficiamento,  comércio  –  com  o  intuito  de  propor  métodos  e  técnicas  de  fiscalização.    4) Dar  suporte  aos  Distritos  na  análise  dos  processos  administrativos  e  minerários  de  requerimento  de  certificação    kimberley;    5) Criar   um   cadastro   fotográfico   e   fichas   de   caracterização  mineralógica   dos   diamantes   produzidos   no  Brasil,  a  partir  da  produção  efetiva  acompanhada  por  um  período  razoável  para  servir  de   indicativo  na  fase  de  identificação  e  pesagem  em  processos  de  requerimento  de  certificação;    6) Realizar  a  análise  processual  e   fiscalização  de  todos  os  processos  e  áreas  requeridas  e  tituladas  para  diamantes;    7) Analisar   dados   das   fichas   de   produção   e   do   Cadastro   de   Compradores   de   Diamantes   a   serem  implantados;    8) Aprofundar   em   todos   os   detalhes   da   indústria   do   diamante   –   pesquisa,   extração,   beneficiamento,  comércio  –  propondo  métodos  e  técnicas  de  fiscalização;    9) Criar   Normas   e   Procedimentos,   institucionalizados   por   Portaria   do   Diretor   Geral   do   DNPM,   para  instrução  e  análise  dos  processos  de   requerimento  de  Certificado  Kimberley  a   semelhança  de  outros   já  existentes  para  pesquisa  mineral,  a  serem  seguidos  pelos  Distritos  e  Sede;  Isto  implica  inclusive  revisar  a  portaria  do  DNPM  que  estabelece  os  procedimentos  para  emissão  do  Certificado  Kimberley,  introduzindo  adicionalmente  os  seguintes  mecanismos  de  controle  e  fiscalização:    

a) Não   emitir   certificado   para   lotes   associados   a   requerimentos   que   citem   áreas   que   não   tenham  produções  declaradas  nos  relatórios  mensais;  

 b) Proibir  lotes  blendados  de  áreas  distintas,  tal  que  cada  lote  seja  formado  por  pedras  de  uma  única  origem;  

 c) Sempre  verificar  nas  vistorias  de  pré-­‐-­‐-­‐lacre  se  confere  as  quantidades  e  valor  informados  para  cada  uma  das  NCM  previstas  para  exportação  de  diamantes;  

 d) Instituir  o  procedimento  do  Pré-­‐-­‐-­‐lacre  do  lote,  como  primeira  vistoria  informando  o  número  do  lacre;  

   

e) Instituir  a  obrigatoriedade  de  envio  à  Sede  e  manutenção  no  local  da  lavra  de  Ficha  de  Produção  e  Comercialização  de  Diamantes,  com  periodicidade  mensal,  onde  conste  nome  do  titular  produtor,  do  primeiro   comprador,   CPF/CNPJ   e   endereço;   Todo   produtor   de   diamante   deverá   informar  mensalmente  ao  DNPM  até  o  décimo  dia  do  mês  subseqënte  a  quantidade  e  valor  de  sua  produção,  o  destino  de  sua  comercialização;  Obrigação  da  assinatura  de  responsável   técnico  nos  requerimentos  (ou  Relatório  Mensal)  de  CPK,  declarando  que  os  diamantes  saíram  daquele  título;  

 f) Certificar  os  lotes  no  Distrito  de  origem  da  produção;  

 g) Vistoriar   todas   áreas   indicadas   como   de   origem    dos   diamantes   para   certificação    no   mínimo  semestralmente  para  verificar  a  existência  de  atividade;  

 h) Efetuar  análise  das  séries  históricas  de  cada  PLG  citada  nos  requerimentos  de  CPK,  com  base  nos  relatórios   mensais;   Promover   vistorias   regulares   (uma   por   semestre)   nas   com   requerimentos   de  certificação;  

 i) Não  emitir  CPK  vinculado  a  áreas  nunca  antes  vistoriadas;  com  sanção  a  servidores  infratores  que  efetuem  o  lacre  de  lotes,  sem  a  observância  desta  obrigação;  

 j) Carimbar  o  verso  de  todo  Certificado  que  conterá  a  assinatura  do  técnico  responsável  pela  vistoria  dos  diamantes;  

 k) Informar  ao  País  de  destino  que  houve  emissão  de  CPK  com  o  número  do  lacre;  

 l) Fazer  constar  nos  processos  administrativos  cópias  do  CPK  em  frente  e  verso;  

 m) Aperfeiçoar  o  banco  de  dados  com  cadastro  de  exportadores  contendo  diversas  informações  como  

relação   dos   compradores   dos   diamantes   brutos   exportados   com   fins   de   monitorar   a   comercialização   de  diamantes  no  país;    

n) verificar  se  todas  as  empresas  ou  pessoas  físicas  e  jurídicas     tituladas  e  empresas  exportadoras  estão  regularmente  inscritas  no  Cadastro  Nacional  de  Pessoas  Jurídicas;    

o) Só  emitir  novos  certificados  cuja  área  indicada  como  origem  do  diamante  já  tenha  sido  vistoriada  e  conste  relatório  de  vistoria  positivo;    

p) Criar    o    Cadastro    Nacional    de    Compradores    de    Diamantes,    com    a    finalidade    de    monitorar    a  comercialização  de  diamantes  no  território  nacional.    

10) Os  técnicos  do  DNPM  que  trabalhem  com  diamantes  deverão  ser  capacitados  para  atuar  no  processo,  em   especial   na   avaliação   e   peritagem   dos   diamantes   brutos,   tanto   para   se   qualificarem   no   julgamento  correto  da  classificação  dos  diamantes,  quanto  a  aferição  por  estimativa  do  seu  valor.  

 Adicionalmente,  verifica-­‐-­‐-­‐se  a  necessidade  de  elaboração  de  ato  normativo  de  Governo  que  estabeleça  atribuições  e  responsabilidades  de  cada  uma  das  instituições  que  compõem  o  SCPK  brasileiro.  Impende  destacar   ser   importante   que   o   DNPM   e   demais   Órgãos   Federais   dotados   de   Poder   de   Polícia  intensifiquem   e   dêem   continuidade   a   ações   ostensivas   de   combate   a   garimpos   ilegais   de   diamante,  particularmente  em  faixa  de  fronteiras.  

   

Statistical Report for Review Visit OBSERVATIONS:

Before explaining to the queries and the discrepancies pointed out in the report of Gabrielle we would like to reiterate that is practically impossible to clear the discrepancies happened in 2003, in view that DNPM only assumed the control of the rough diamond trades starting from November of 2003 and our Agreement with System of Information of the Central Bank of Brazil it was only made official in the end of December of the same year. For that reason, we are able to explain the discrepancies starting only from 2004.

Production: The great variations can be explained by the unitary value of the exported diamonds, in view that they were not always they were exported in a continuous way, which can be observed in the detailed PK statistics. For instance, in 2005, the company Giacampos exported a remittance of 25,12 ct to the value of 2 million American dollars, what caused the great difference in the exports of the first semester. We would like to point out that the values of exports were estimated, based on the unitary medium values of the rough diamonds exported with the Kimberley Certificate.

Besides, we would like to point our that in spite of our alluvial production, historically we have several rough diamonds of high weight and value, such as:

Presidente Vargas – 726ct Darcy Vargas – 460ct Governador Valadares – 108ct

In accordance with our certificate, all the information and data are of the exporter's exclusive responsibility. In the present, DNPM doesn't still have infrastructure for diamond sorting and valuation in order to classify diamonds correctly, as well no cutting and polishing facilities.

However, we appreciate very much to receive external technical and financial help in order to set up a laboratory and a team to carry out such functions.

KPC Counts: 2004: Imports: Regarding the recorded receiving certificates, there was a correction, that is, Brazil in 2004 received 16 certificates, all of them coming from the USA. All received certificates can be proven. However we don't know yet why USA recorded a different number of emissions for Brazil.

Exports: Regarding the issued certificates, there was also a correction, and Brazil issued 59 certificates in 2004. All the comparisons with the European Community, United Arab Emirates, India and Israel didn't present any discrepancy. The only and big discrepancy was with regard to the United States, from where we issued 17 certificates and it was only recorded receiving one

   

certificate. We will keep in touch with the focal point of the United States to reconcile the statistics.

2005: Trade: Brazil is primarily an exporter of rough diamonds. Their import transactions are relatively marginal compared to export transactions.

2004: Imports: In accordance with our statistical data, all the imports of 2004 occurred under the code 7102.21, except, after our correction, three remittances for the company CINDAN, that were under the HS code 7102.10, and now are under the HS code 7102.31.

Brazil, after a small correction, imported from the United States 10,467.50ct by the value of US$635,959.26. This way, we think that there was a mistake on the part of the United States, which we will verify with the respective focal point.

We emphasized that there was none trade with Venezuela.

Exports: With respect to the exports to the United States, we emphasized that in value the sum presented by the USA, as for Brazil, it is the same. However, if we considered weight, there is a great discrepancy that can be explained only by the United States, just as it happened and it was already explained by United Arab Emirates.

2005 Imports: The imports of 2005 were corrected to 16,475.05ct and value US$289,647.17. In 2004, four remittances for company CINDAN and one for FSN elevated the unitary price of the imports excessively. For that reason, the unitary price of 2005 decreased. We point out that in 2005 Brazil only imported rough diamonds under HS codes 7102.21 and 7102.31, but didn’t have any remittance registered under the code 7102.10.

It is important to clear that Brazil registered imports only from the United States and only one remittance from the UK, whose origin of the diamonds is from Australia.

Exports: The discrepancies between Brazil and CE will only be able to be explained, after our contacts with the respective focal point.

We are having difficulties in presenting in our statistics the country of origin (mining), in view that some certificates, from USA for instance, don’t show that detail, and some countries only clear the origin through the process and not in the own certificate.

We assumed that we have not been having the due relationship with our trading partners with the

   

objective of reconciling our information. We are sure that from now on we will strengthen more the link between us and our partners and our future statistical data will be nearest of the reality.

   

PORTARIA Nº 295, DE 1º DE SETEMBRO DE 2006. Regula a emissão do Certificado do Processo de Kimberley – CPK para exportação e anuência para importação de diamantes brutos, institui o Cadastro Nacional do Comércio de Diamantes Brutos, o Relatório de Transações sobre a Produção e Comercialização de Diamantes Brutos e dá outras providências. O DIRETOR-GERAL DO DEPARTAMENTO NACIONAL DE PRODUÇÃO MINERAL - DNPM, no uso de suas atribuições, e tendo em vista o disposto na Lei nº. 10.743, de 9 de outubro de 2003, publicada no DOU de 10 de outubro de 2003 e na Portaria Conjunta DNPM/SRF nº. 397, de 13 de outubro de 2003, publicada no DOU de 14 de outubro de 2003; CONSIDERANDO que a exportação e a importação de diamantes brutos somente poderão ser efetivadas após a prévia anuência do Departamento Nacional de Produção Mineral - DNPM, RESOLVE: Art. 1º A exportação ou a importação de diamantes brutos, definidos pelo Sistema Harmonizado de Codificação e Designação de Mercadorias – SH, com base nos códigos: 7102.10; 7102.21 e 7102.31, somente poderão ser efetivadas após a prévia anuência do Departamento Nacional de Produção Mineral – DNPM e, no primeiro caso, com a necessária emissão do Certificado do Processo de Kimberley - CPK. Art. 2° Fica instituído o Cadastro Nacional do Comércio de Diamantes – CNCD, instrumento de monitoramento da comercialização de diamantes brutos em todo o território nacional, o qual estará disponível em formulário eletrônico próprio, conforme explicitado no Art. 4º. Art. 3° Para fins de Certificação do Processo de Kimberley junto ao DNPM, todas as pessoas físicas ou jurídicas que pretendam comercializar diamantes brutos, produtoras ou não, terão, obrigatoriamente, que estar inscritas no CNCD e comprovar que o DOU DE 05 DE SETEMBRO DE 2006. lote de diamante a ser exportado foi adquirido de pessoa física ou jurídica titular de direito minerário com a competente autorização de lavra e devidamente inscrita no CNCD. § 1º A comprovação referida no caput ocorrerá por meio da apresentação da cadeia sucessória de notas fiscais de venda, não sendo admitida a nota fiscal de compra. § 2º O disposto no parágrafo anterior se aplica inclusive ao produtor titular de direito minerário, pessoa física, como primeiro elo da cadeia sucessória de notas, devendo constar da nota emitida, dentre outras informações fiscais, o nome do emitente, CPF ou CNPJ, endereço, número do processo do DNPM e do título autorizativo de lavra e descrição do produto. Art. 4° A inscrição no CNCD será obrigatória para todo produtor ou comerciante de diamantes brutos no território nacional, incluindo importador e exportador e deverá ser pleiteada por meio de formulário eletrônico próprio, dirigido ao Diretor-Geral do DNPM, o qual, após o envio pela internet, será impresso em duas vias e protocolizado em qualquer Distrito do DNPM, acompanhado dos seguintes elementos de instrução e prova: I – em se tratando de pessoa física, cópias autenticadas de documento oficial de identidade com foto e do CPF ou CNPJ; ou cópias simples, com apresentação dos documentos originais; II – em se tratando de pessoa jurídica, original do contrato social ou cópia autenticada com o devido registro na Junta Comercial;

   

III – instrumento de mandato em original ou cópia autenticada, em caso do requerente estar representado por terceiro. Parágrafo único. A confirmação da inscrição será efetivada com a protocolização conforme referida no caput, após o que estará liberado o acesso do usuário ao sistema, com as credenciais fornecidas no cadastro. Art. 5º Os inscritos no CNCD que desejarem interromper, temporária ou definitivamente, suas atividades de comercialização de diamantes, deverão comunicar o fato ao DNPM em requerimento dirigido ao Diretor-Geral, para fins de suspensão ou de baixa no cadastro, respectivamente. Art. 6º No preenchimento do CNCD, o requerente deverá informar obrigatoriamente no campo próprio, as suas vendas efetuadas a partir de 01 de outubro de 2005. Art. 7º As informações prestadas ao DNPM pelas pessoas físicas ou jurídicas sobre valor e volume dos diamantes brutos comercializados são de uso restrito das instituições de governo responsáveis pelo SCPK do Brasil. Art. 8º Fica instituído, como instrumento de monitoramento e controle da produção e comercialização de diamantes, o Relatório de Transações Comerciais – RTC, elaborado pelo produtor ou comerciante de diamantes brutos no território nacional, incluindo importador e exportador, disponível no sítio do DNPM pela rede mundial de computadores, em formulário eletrônico próprio. Art. 9º O RTC terá de ser enviado ao DNPM pelo sistema disponível, em até cinco dias úteis após qualquer operação de compra ou venda de diamantes brutos. § 1º Não ocorrendo movimentação de compra e de venda em determinado mês, a pessoa física ou jurídica cadastrada no CNCD fica obrigada a enviar o RTC até o décimo dia útil do mês subseqüente, apenas informando o estoque declarado no RTC do mês anterior. § 2º O não preenchimento, o preenchimento incompleto ou incorreto do RTC, por parte do produtor, ensejará a aplicação de multa, de acordo com o estabelecido no inciso XIII do art. 54 e inciso II do art. 100 do Regulamento do Código de Mineração, no valor de R$ 1.556,57 (hum mil quinhentos e cinqüenta e seis reais e cinqüenta e sete centavos), sem prejuízo das demais sanções e da obrigatoriedade de apresentação do referido RTC do mês faltante. § 3º Será indeferido o requerimento de Certificado do Processo de Kimberley – CPK, para lote de diamantes em que alguma operação de venda não tenha sido informada por meio do RTC ou em desacordo com as normas desta portaria, ficando o lote sujeito a apreensão para averiguação da origem. § 4º A não apresentação do RTC implica na imediata desativação da inscrição do produtor, do comerciante intermediário, do importador ou do exportador no Cadastro Nacional do Comércio de Diamantes – CNCD, permanecendo as informações referentes ao inscrito na base de dados do DNPM, na qualidade de inativo. § 5º A reativação da inscrição no Cadastro de que trata o parágrafo anterior será efetuada nos termos do disposto no Art. 4° desta Portaria, e desde que o interessado tenha superado qualquer inadimplemento para com o DNPM, particularmente os referentes aos motivos que levaram à desativação do respectivo cadastro. Art. 10. Os dados constantes do RTC estão sujeitos à fiscalização pelo DNPM, a qualquer tempo, no exercício de sua função de Estado. Art. 11. A anuência prévia para importação de diamantes brutos será solicitada por intermédio de requerimento dirigido ao Diretor-Geral do DNPM, nos termos previstos no art. 1º, § 1º, inciso I, da Portaria Conjunta DNPM/SRF nº. 397, de 13 de

   

outubro de 2003. Parágrafo único. Haverá, por parte do DNPM, manifestação favorável ao Sistema Integrado de Comércio Exterior - SISCOMEX, se verificado que o requerimento está instruído de acordo com o previsto no caput e conferir com as informações prestadas pela autoridade exportadora do país de origem. Art. 12. Fica instituído o pré-requerimento eletrônico de certificação do Processo de Kimberley para exportação de diamantes brutos, a ser utilizado em formulário eletrônico próprio, disponível na área de acesso exclusivo aos inscritos no CNCD, que deverá ser enviado pelo interessado por meio da rede mundial de computadores – Internet. § 1º A utilização do pré-requerimento eletrônico não suprime a obrigatoriedade de apresentação pelo interessado, no protocolo do Distrito do DNPM de circunscrição da área de produção dos diamantes, do formulário padronizado impresso, em duas vias, gerado após o envio pela Internet, para o devido registro, acompanhado dos seguintes elementos de instrução e prova: I - prova de recolhimento de emolumentos, por meio de boleto bancário, em documento original e autenticado mecanicamente por instituição bancária, no valor equivalente a R$ 400,00; II – nos casos em que o exportador não for o produtor, documentação original ou fotocópia autenticada demonstrando a cadeia sucessória de notas fiscais de venda de pessoa física ou jurídica detentora de área com título autorizativo de lavra do DNPM; e III – apresentar, nas notas fiscais, o nome, CPF ou CNPJ, endereço, número do processo do DNPM e do título autorizativo de lavra e descrição do produto. § 2º O interessado deverá apresentar, no prazo de até trinta dias da data de envio pela rede mundial de computadores, o formulário em meio impresso do requerimento do CPK no protocolo do Distrito de situação da área produtora dos diamantes, ocasião em que o servidor do DNPM, após a conferência da documentação, fará uso do código alfanumérico do formulário impresso para gerar a etiqueta e formar o processo administrativo. A não efetivação do requerimento impresso no protocolo do Distrito do DNPM, no prazo estabelecido neste § 2º, implicará a perda das informações do prérequerimento na base temporária do DNPM, e a invalidação do código alfanumérico gerado. § 3º A protocolização do requerimento de CPK em distrito do DNPM diverso daquela da circunscrição da área produtora do respectivo lote, assim como a ausência de qualquer elemento de instrução e prova de que trata o parágrafo anterior, ensejará o indeferimento do requerimento. § 4º É vedada a composição de lotes com diamantes produzidos fora da área de circunscrição do Distrito onde o requerimento for protocolado. § 5º O formulário referido no caput deste artigo estará disponível no sítio eletrônico http://www.dnpm.gov.br/cpk. Art. 13. Somente poderá ser emitido CPK de lotes oriundos de área produtora, que tenha sido vistoriada pelo DNPM nos seis meses anteriores ao respectivo requerimento, e que tenha sido comprovada efetiva atividade extrativa mineral, bem como a compatibilidade entre a produção de diamante informada e a capacidade nominal instalada. Art. 14. Os diamantes brutos, definidos como o especificado no Art. 1º, quanto ao tamanho, devem ser iguais ou maiores do que 1mm (um milímetro) na maior dimensão. § 1º Os diamantes brutos com dimensões inferiores às referidas no caput não necessitam de certificação de origem para exportação e não poderão ser incluídos em lotes de outras dimensões que exijam obrigatoriedade de certificação. § 2º Um mesmo lote destinado à exportação não pode conter diamantes

   

identificados com diferentes códigos SH, ou seja, cada lote de diamantes, tem que ser homogêneo no que se refere ao seu código de mercadoria. § 3º O DNPM poderá exigir que, dentro de um mesmo código SH referido no Art. 1º, os lotes sejam classificados por tamanho, buscando a homogeneidade dos lotes. Art. 15. Para efeito de conferência das informações prestadas pelo requerente, o DNPM realizará uma vistoria de pré-lacre e outra de lacre final do lote. § 1º Na vistoria de pré-lacre, serão confirmadas pelo agente do DNPM as informações prestadas pelo interessado no requerimento do CPK, conferindo-se as características do lote, antes da emissão do CPK pelas autoridades competentes. § 2º Em cada vistoria de que trata o caput, deverá ser feito o registro fotográfico das amostras, que instruirá o processo administrativo. § 3º O DNPM informará ao requerente ou seu representante legal a data e horário das vistorias para conferência da exatidão das informações prestadas no requerimento, referentes ao valor, peso em quilates e identificação mineralógica, quando promoverá a efetivação do pré-lacre do respectivo lote e do lacre final. Art. 16. Realizada a conferência final do processo administrativo de certificação e considerado o mesmo devidamente instruído, será emitido o CPK, com as assinaturas das autoridades competentes. § 1º Quando da vistoria do lacre final do lote, o agente do DNPM efetuará a inserção do CPK no invólucro apropriado, após verificação da regularidade do lote prélacrado. Art. 17. O CPK terá validade de sessenta dias, a partir de sua emissão. Parágrafo único. O exportador, pessoa física ou jurídica, que não utilizar o CPK, fica obrigado a devolvê-lo ao DNPM no prazo de trinta dias subseqüentes à perda de validade do certificado, sob pena de não obter anuência em futuras exportações ou importações. Art. 18. Quando houver dúvida sobre a origem ou sobre a identificação mineralógica, o DNPM poderá exigir laudo técnico para a confirmação da autenticidade das informações prestadas. Art. 19. Se ficar caracterizado, em qualquer das fases do processo de certificação, que o requerente se utilizou de artifícios para a obtenção de CPK, o Chefe do Distrito comunicará o fato ao Ministério Público Federal, bem como à Receita Federal, para que sejam adotadas as providências de que trata o art.10 da Lei n° 10.743/2003, particularmente para fins de aplicação de multa de cem por cento do valor da mercadoria. Parágrafo único. O DNPM poderá reter, para averiguação, qualquer lote de diamantes que tenha sido pré-lacrado e que guarde suspeição sobre sua origem, assim como apreender, quando se tratar de fraude ou qualquer ilicitude devidamente comprovada. Art. 20. Fica revogada a Portaria nº. 209, de 05 de agosto de 2005, publicada no diário oficial da União de 08 de agosto de 2005. Art. 21. Esta Portaria entra em vigor na data de sua publicação. MIGUEL ANTONIO CEDRAZ NERY

   

PROJETO DE LEI Nº. /2006

INSTITUI O ESTATUTO DO GARIMPEIRO E DÁ OUTRAS PROVIDÊNCIAS

Capitulo I

Disposições preliminares Art. 1. Fica instituído o Estatuto do Garimpeiro, destinado a disciplinar os direitos e deveres assegurados aos garimpeiros.

Art 2 - Para os fins previstos nesta Lei, entende-se por:

I – garimpeiro: toda pessoa física de nacionalidade brasileira que, individualmente

ou em forma associativa, atue diretamente no processo da extração de substâncias minerais garimpáveis;

II – garimpo: a localidade onde é desenvolvida a atividade de extração de substâncias minerais garimpáveis, com aproveitamento imediato do jazimento mineral que, por sua natureza, dimensão, localização e utilização econômica, possam ser lavradas, independentemente de prévios trabalhos de pesquisa, segundo critérios técnicos do Departamento Nacional de Produção Mineral – DNPM; III - minerais garimpáveis: o ouro, o diamante, a cassiterita, columbita, tantalita, wolframita, nas formas aluvionar, eluvional e coluvial, a sheelita, as demais gemas, rutilo, quartzo, berilo, muscovita, espodumenio, lepidolita, feldspato, mica e outros tipos de ocorrência que vierem a ser indicados a critério do DNPM.

Art. 3. O exercício da atividade de garimpagem só poderá ocorrer após outorga do competente título minerário, sendo o referido título indispensável para a lavra e a primeira comercialização dos minerais garimpáveis extraídos.

Capitulo II

Das Formas e Regimes de Trabalho

Art. 4. Os garimpeiros poderão se organizar sob os seguintes regimes de trabalho:

I – autônomo e individual, sem vinculo empregatício;

II – de economia familiar, exercida por membros da família, que realizem trabalho coletivo de extração de substâncias minerais garimpáveis, sem vínculo empregatício.

III – individual com vínculo ou coletivo, com ou sem vínculo empregatício, de

extração de substâncias minerais garimpáveis, nos termos da legislação específica, nas seguintes

   

formas: a) Contrato de parceria, mediante Instrumento Particular registrado em cartório; b) Cooperativa ou outra forma de associativismo

CAPÍTULO III Dos Direitos e Deveres do Garimpeiro

Dos Direitos

Art. 5. As cooperativas de garimpeiros terão prioridade na obtenção de título para aproveitamento mineral dos recursos e jazidas de minerais garimpáveis, nas áreas onde estavam atuando nas hipóteses do art.14 da Lei 7.805/1989.

Parágrafo Único. É facultado ao garimpeiro associar-se a mais de uma cooperativa, que tenha atuação em áreas distintas.

Art 6. As jazidas consideradas pelo DNPM como exauridas economicamente que, comprovadamente, contenham nos seus rejeitos minerais garimpáveis que possam ser objeto de exploração garimpeira, poderão ser disponibilizadas por meio de edital às cooperativas de garimpeiros, mediante a manifestação de interesse destas, conforme dispuser portaria do Diretor- Geral do DNPM.

Art. 7. Os títulos minerários que tenham como objeto substâncias minerais garimpáveis, em processo de caducidade, que possam ser objeto de atividade garimpeira, poderão ser disponibilizados pelo DNPM às cooperativas de garimpeiros, mediante a manifestação de interesse destas, conforme dispuser portaria do Diretor-Geral do DNPM.

Art 8. Fica assegurado ao garimpeiro ou à cooperativa de garimpeiros, em qualquer dos seus regimes de trabalho, que tenham cumprido todas as exigências legais em relação ao meio ambiente e direito minerário, o acesso ao aproveitamento de minerais garimpáveis nas áreas tituladas.

Art 9. Fica assegurado ao garimpeiro, em qualquer um dos seus regimes de trabalho, o direito de comercialização da sua produção diretamente com o consumidor final, desde que se comprove a titularidade da área de origem do minério extraído.

Art. 10. A atividade de garimpagem será objeto de elaboração de políticas públicas pelo Ministério de Minas e Energia destinadas a promover o seu desenvolvimento sustentável.

Art. 11. A cooperativa detentora dos direitos minerários para aproveitamento dos bens minerais garimpáveis incluirá em seu quadro de cooperados, os garimpeiros que tenham exercido atividade de garimpagem nas suas áreas de atuação, desde que devidamente comprovada, conforme disposto em estatuto.

   

Art. 12. Fica assegurado o registro do exercício da atividade de garimpagem nas carteiras expedidas pelas cooperativas de garimpeiros.

Dos Deveres do Garimpeiro

Art 13. O garimpeiro, em qualquer dos seus regimes de trabalho, fica obrigado a:

I – recuperar as áreas degradadas por suas atividades; II – atender o disposto no Código de Mineração no que lhe couber; III – cumprir a legislação vigente em relação a Segurança e Saúde no Trabalho.

Art 14. É vedado o trabalho de menores de 16 anos nos garimpos.

Parágrafo Único – É também vedada ao garimpeiro a relação comercial com setores que utilizam trabalho infantil, nos termos da legislação em vigor.

Capítulo IV

Das Entidades de Garimpeiros

Art 15. É livre a filiação do garimpeiro às associações, confederações, sindicatos, cooperativas ou outras formas associativas, devidamente registradas, conforme legislação específica.

Art 16. As cooperativas, legalmente constituídas, titulares de direitos minerarios, deverão informar ao DNPM, anualmente, a relação dos garimpeiros cooperados, exclusivamente para fins de registro.

§1º A não-apresentação tempestiva ou a inveracidade das informações prestadas implicará em multa de R$ 2.000,00 (dois mil reais), a ser aplicada pelo DNPM.

§2º No caso de reincidência, a multa será aplicada em dobro, podendo, no caso de não pagamento ou nova ocorrência ensejar a caducidade do titulo.

Capítulo V Das Disposições Finais

Art. 17. O garimpeiro que tenha contrato de parceria com o titular de direito minerário deverá comprovar a regularidade de sua atividade na área titulada mediante apresentação de cópias autenticadas do contrato e do respectivo título minerário.

§1º O contrato referido no caput não será objeto de averbação no DNPM.

   

Art. 18. Fica o titular de direito minerário obrigado a enviar, anualmente, ao DNPM, a relação dos garimpeiros que atuam em sua área, sob a forma de regime de trabalho de parceria, com as respectivas cópias desses contratos.

§1º A não-apresentação tempestiva ou a inveracidade das informações prestadas implicará em multa de R$ 1.000,00 (um mil real), a ser aplicada pelo DNPM.

§2º No caso de reincidência, a multa será aplicada em dobro, podendo, no caso de não pagamento ou nova ocorrência ensejar a caducidade do titulo.

Art.19. É instituído o Dia Nacional do Garimpeiro a ser comemorado em 21 de julho, dia em que se registra, no ano de 1764, a saída do Bandeirante Fernão Dias Paes Leme de São Paulo em direção ao interior do país, atual estado de Minas Gerais.

Art 20. Fica intitulado Patrono dos Garimpeiros o Bandeirante Fernão Dias Paes Leme, primeiro garimpeiro que a história das conquistas bandeirantes registra, que neste ato representa todos aqueles que, a semelhança dos garimpeiros, desbravaram o território brasileiro a procura de pedras e metais preciosos, interiorizando e ampliando as nossas fronteiras.

Art.21. Esta lei entra em vigor na data de sua publicação.

Art.22. Revogam-se as disposições em contrário.

PROJETO DE EMENDA CONSTITUCIONAL

   

Art 1. O tempo de exercício profissional como garimpeiro correspondente a 28 de fevereiro de 1967 a julho de 1989 será comprovado pela apresentação do Certificado de Matrícula de Garimpeiro, emitido pelo Ministério da Fazenda.

Art 2. O tempo de exercício profissional como garimpeiro no período compreendido entre 19 de julho de 1989 até a data de publicação desta Lei será comprovado, para fins de benefícios previdenciários, mediante certidão emitida por entidade garimpeira tais como sindicatos, associações, cooperativas, à qual o garimpeiro é filiado.

Art 3. Caberá às entidades sindicais receber e certificar as comprovações recebidas de tempo de exercício profissional para encaminhamento à Previdência Social.

Art 4. A inclusão do garimpeiro como segurado especial, terá seus efeitos retroativos ao dia 15 de dezembro de 1998.

Brasília-DF, 19 de Outubro de 2005.