The transition clock is ticking to implement the revised System of Warranties
The transition period for professional buyers and sellers of rough diamonds, polished diamonds and jewelry set with diamonds, to include the revised System of Warranty (“SoW”) statement on B2B invoices and memos each time a diamond changes hands, is drawing to a close.
The revised SoW must be applied to invoices and memos relating to rough diamond purchases by 21 September 2024. In case of all other purchases, the transition period ends in September 2026. Beyond these dates, companies may no longer accept the original SoW statements from their clients.
The revised SoW addresses challenges of the distribution chain that go beyond those specifically related to “conflict diamonds”.
Warranty statements associated with the revised SoW requires compliance with the Wold Diamond Council SoW Guidelines, confirming not only Kimberly Process compliance as used to be the case, but also that the diamonds are traded in accordance with essential responsible business practices related to universally accepted human and labor rights, anti-money laundering and anti-corruption regulations.
To use the revised SoW, companies must complete a registration on a the dedicated SOW page of the World Diamond Council System of Warranties and complete a (yearly) assessment to validate compliance with the aforementioned responsible business practices.
For more information, please consult the website of the World Diamond Council System of Warranties.
