FAQ - DSEDT

You are here: Home » Classification by Functions » External Trade » Kimberley Process Certification Scheme » FAQ

FAQ

1. What types of diamonds are regulated by the Kimberley Process Certification Scheme (KPCS)?

The scope of regulation of the KPCS is limited to only three types of rough diamonds, of which the HS codes are 7102.10, 7102.21 and 7102.31. Other diamonds, such as polished diamonds and laboratory-grown or synthetic diamonds, do not fall under the KPCS’s scope of regulation.

I. Operating License

2. How does an enterprise commence rough diamond business activities in Macao?

In accordance with Law No. 15/2019 – Law on Implementation of the Kimberley Process Certification Scheme for the International Trade in Rough Diamonds, operators engaging in rough diamond economic activities (including import, export, transit, purchase, sale and transport) are required to apply for an Operating License from the Economic and Technological Development Bureau (DSEDT). Haven been issued an Operating License (valid for two years, renewable), an enterprise may engage in rough diamond economic activities within the term of validity of the Operating License.

For rough diamond import/export or transit activities, operators are required to apply for using the electronic customs clearance service (EDI) system developed by Macao EDI VAN, S.A. (TEDMEV) for performing rough diamond Import/Export/Transit License application. For compliance with the requirements of Law No. 15/2019, enterprises are required to, prior to using the EDI system, apply for an electronic certificate (of which the type is Qualified Certificate (QC) that can generate a Qualified Electronic Signature (QES)) from the Macao Post and Telecommunications Bureau (CTT) in order to submit an Import/Export/Transit License application to the Economic and Technological Development Bureau (DSEDT) via EDI by using a recognized electronic signature.

TEDMEV EDI application: https://www.tedmev.com/en/online_eDeclaration.php

CTT electronic certificate application: https://www.esigntrust.com/en/prod_qc.html

3. What are the considerations for approval of an Operating License?

In accordance with Article 4 of Law No. 15/2019, operators intending to engage in rough diamond economic activities (including import, export, transit, purchase, sale and transport) are required to comply with the requisites for engagement in the business, including having declared commencement of business for tax purposes, not being declared bankrupt or insolvent, having a permanent place of business in Macao, not being a tax debtor to the Macao SAR and being deemed qualified for engaging in the business. In addition, Article 4 of the Law also lists the crimes and offenses committed by the operators or their administrators that might lead to the applicant being deemed unqualified for engagement in the business.

4. How to submit an application for Operating License?

Operators engaging in rough diamond economic activities in Macao are required to apply from the DSEDT for an Operating License, which is valid for two years and renewable.

Registration as a “Normal User” at the DSEDT website (www.dsedt.gov.mo) is required prior to applying for an Operating License. Applications may be submitted by the following two methods:

Online Submission:

(1) complete the application form through the DSEDT website;

(2) upload the required documents;

(3) submit by the enterprise’s statutory representative with his/her electronic signature (using a CTT Qualified Electronic Signature (QES)).

or Online Pre-application + Submission in paper:

(1) complete the application form through the DSEDT website;

(2) submit pre-application electronically;

(3) print the application form and have it signed by the enterprise’s statutory representative(s);

(4) submit in-person at the DSEDT office with the required documents.

The required documents for the two submission methods above include:

Business Tax New Registration/Amendment Form (M1)
Commercial Registration Certificate
Document evidence of not being a tax debtor to the Macao SAR
Declaration of non-bankruptcy or non-insolvency
Certificates of Criminal Record of the applicant and its administrator(s) or equivalent documents

One may apply for a Certificate of Criminal Record from the Identification Services Bureau (DSI). One may also request the Certificate be forwarded directly to DSEDT. (Category of use: Application for Operating License for Rough Diamond Economic Activities, code number 158).

http://www.dsi.gov.mo/certificate_e.jsp

5. How to apply for a renewal of Operating License?

Applicants are required to submit, by the two methods mentioned above, an application for renewal of Operating License not less than 10 working days prior to the expiry of the term of validity.

II. Import/Export and Transit Administration

6. How does an enterprise carry out rough diamond import/export or transit activities?

Application for a license from the DSEDT is required for engaging in rough diamond import/export or transit activities.

For importing rough diamonds, application for an Import License has to be submitted to DSEDT through the EDI customs declaration system, by filling in the form and uploading a copy of the Kimberley Process Certificate issued by the competent authority of the place of provenance. Upon being granted an Import License, the enterprise should make an appointment with the Customs for customs clearance at the designated location.

For exporting rough diamonds, application for an Export License has to be submitted to DSEDT through the EDI customs declaration system, by filling in the form and uploading documents for the import of the batch of rough diamonds into Macao, such as the Kimberley Process Certificate for the same rough diamonds at the time of their import and the relevant purchase and sale bills. Upon being granted an Export License and a Kimberley Process Certificate, the enterprise should make an appointment with the Customs for customs clearance at the designated location.

For transiting rough diamonds, an application for a Transit License has to be submitted to DSEDT through the EDI customs declaration system. Upon being granted a Transit License, the enterprise should make a transit declaration to the Customs at the border checkpoint.

7. What are the requisites that enterprises must comply with for applying for a Kimberley Process Certificate?

The electronic application for an Export License to the DSEDT through the EDI customs declaration system simultaneously and automatically comprise that for the Kimberley Process Certificate. Documents for the original import of the batch of rough diamonds, such as the Kimberley Process Certificate used at the time of import and the relevant purchase and sale bills, have to be uploaded for the purpose.

8. If inconsistencies are found between the details on the Kimberley Process Certificate and the rough diamonds, how will they be handled?

DSEDT will verify the export status and details of the batch of rough diamonds and consult with the competent authority of the country or territory issuing the Kimberley Process Certificate. If both sides reach an agreement on the situation, the shipment can be released upon rectification of the details by the enterprise. If the situation does not allow a release, the shipment will be returned to the place of provenance.

9. Can a natural person bring rough diamonds into or out of Macao on his/her own for personal consumption or use purposes without being regulated?

As defined in Article 2 of the Implementation Law, export means the physical leaving or taking out of the Macao SAR of rough diamonds, while import means the physical entering or bringing into the Macao SAR of rough diamonds. Thus, a natural person bringing rough diamonds into or out of Macao on his/her own is also regulated by this Law, and is required to apply for import/export documents (Import/Export License and Kimberley Process Certificate) from DSEDT in advance.

10. Why are applications for rough diamond licenses and Kimberley Process Certificate required to be submitted through EDI?

Article 9 of Law No. 15/2019 provides that applications for rough diamond Import/Export/Transit Licenses are made by means of electronic data transmission. This requirement allows verification of data and information at the time of import/export of goods, saves the time needed for manual inputting of information and improves the accuracy of information, and in turn enhances the regulatory efficiency and timeliness of customs clearance. This would facilitate the sector to develop rough diamond trade, and supports the SAR Government in further promoting the e-government initiative.

11. Is a Kimberley Process Certificate required for a Macao enterprise to carry out import/export trade of rough diamonds with the Mainland or Hong Kong?

Both the Hong Kong and Macao SAR participate in the KPCS through the People’s Republic of China. Due to the differences in legal systems among the three sides, Kimberley Process Certificates are required for imports/exports of rough diamonds with Mainland China and the Hong Kong SAR.

12. Does DSEDT charge any fees for issuing Kimberley Certificate or Import/Export/Transit License?

Import/Export/Transit License issued by DSEDT is free of charge, while the fee for each Kimberley Certificate issued is MOP70.00.

III. Administrative Offense

13. How will administrative offenses in rough diamond business operations be addressed?

Law No. 15/2019 provides that the following circumstances constitute administrative offenses:

Importing/exporting rough diamonds in absence of a Kimberley Process Certificate, which shall be punishable by a fine of MOP500,000 to MOP5,000,000.
Engaging in rough diamond businesses in absence of a valid Operating License; failing to discontinue rough diamond business operations after the cancellation or suspension of the Operating License; carrying out trade with non-Kimberley Process participating countries or territories; obtaining Certificates by using invalid or revoked Certificates and providing false statements, which shall be punishable by a fine of MOP200,000 to MOP2,000,000.
Violating the obligation to keep and submit records, or failing to return invalid or revoked Certificates, which shall be punishable by a fine of MOP10,000 to MOP50,000.

14. What are the additional penalties?

In accordance with Law No. 15/2019, apart from the above administrative penalties, one or more additional penalties may be imposed under Article 21, including: appropriation of rough diamonds related to the offenses in favor of the Macao SAR (only for administrative offenses punishable by a fine between MOP200,000 and MOP5,000,000); prohibition on issuing of Certificates in favor of the offender for a period not exceeding 2 years; revocation of the valid Certificates issued in favor of the offender.

IV. Others

15. Does the KPCS regulate the weights and quantities of rough diamond trade?

Where the import/export of rough diamonds complies with the rules and requirements of the KPCS-related legislation, the quantities are not limited, provided that the carat quantity of each batch of rough diamonds exported/imported is consistent with that on the Kimberley Process Certificate accompanying that batch of diamonds.

16. Can Kimberley Process rough diamonds be processed locally as polished diamonds or jewelries without being regulated?

All legally imported rough diamonds can undergo any processing operations locally, including cutting and polishing. The trade of polished diamonds or diamond jewelries is not regulated by the KPCS. However, purchasing and selling rough diamonds locally require the buyer and the seller holding Operating Licenses issued by DSEDT, while the Operating License holders shall observe the obligations to save and submit records in accordance with the rules and requirements.

17. Do enterprises have any obligations to cooperate in carrying out rough diamond economic activities?

In accordance with Article 17 of Law No. 15/2019, DSEDT may conduct necessary inspections and surveys on the business of the enterprises concerned and facilities where rough diamonds are located. When performing the relevant duties, both legal and natural persons have the obligation to provide cooperation. Failure to observe such obligation to cooperate shall constitute general disobedience provided for in Article 19.