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processor rather than as the provider of provisions of the Regulatory Flexibility Background goods and services to the committee. Act, which apply when notice and I. Purpose See 11 CFR 102.9. The itemization comment are required by the requirement prevents a committee from Administrative Procedure Act or In response to the role played by the avoiding the Act’s disclosure another statute, do not apply. See 5 illicit trade in diamonds in fueling requirements by placing operating U.S.C. 603(a). conflict and human rights violations in expenditures on a credit card.3 certain areas of the world, and to Dated: June 27, 2013. differentiate between the trade in 3. Unreimbursed Disbursements by On behalf of the Commission. conflict diamonds and the trade in Candidates Ellen L. Weintraub, legitimate diamonds, the United States A candidate may make unlimited Chair, Federal Election Commission. and numerous other countries expenditures from personal funds on [FR Doc. 2013–16125 Filed 7–5–13; 8:45 am] announced in the Interlaken Declaration behalf of his or her authorized BILLING CODE 6715–01–P of November 5, 2002, the launch of the committee. See 11 CFR 110.10. Any Kimberley Process Certification Scheme candidate who ‘‘makes a disbursement (KPCS) for rough diamonds. Under the KPCS, participating countries prohibit in connection with [his or her own] DEPARTMENT OF HOMELAND the importation of rough diamonds campaign, shall be considered . . . as SECURITY having made the disbursement . . . as from, or the exportation of rough an agent of the authorized committee or U.S. Customs and Border Protection diamonds to, a non-participant and committees of such candidate.’’ 2 U.S.C. require that shipments of rough 432(e)(2); see also 11 CFR 101.2(a). DEPARTMENT OF THE TREASURY diamonds from or to a participating Authorized committees must disclose country be controlled through the KPCS. these disbursements on their reports 19 CFR Part 12, 163, and 178 The U.S. Secretary of State is filed with the Commission just as they responsible for providing an up-to-date would disclose any other disbursements [USCBP–2012–0022; CBP Dec. 13–10] listing of all participants in the KPCS. that they may make. 2 U.S.C. 434(b)(4), Swaziland was added to the list of (5), (6)(A); 11 CFR 104.3(b)(4). RIN 1515–AD85 participants in the KPCS and the Thus, out-of-pocket spending by addition was announced in the Federal Prohibitions and Conditions on the candidates, as agents of their authorized Register (77 FR 27831) on May 11, 2012, committees, requires memo entry Importation and Exportation of Rough and Cambodia, Cameroon, Kazakhstan, itemization of the ultimate payee if the Diamonds and Panama were added to the list of aggregate amount of payments to that AGENCIES: U.S. Customs and Border participants and announced in the vendor exceeds $200 for the election Protection, Department of Homeland Federal Register (78 FR 12135) on cycle. The memo entry must include the Security; Department of the Treasury. February 21, 2013. date, amount, and purpose of the out-of- ACTION: Final rule. II. Clean Diamond Trade Act and pocket payments, as well as the name Executive Order and address of the vendor to which SUMMARY: This document amends the payment was made.4 U.S. Customs and Border Protection The Clean Diamond Trade Act (the This interpretive rule clarifies the (CBP) regulations to set forth the Act), Public Law 108–19, 117 Stat. 631 Commission’s interpretation of existing prohibitions and conditions that are (19 U.S.C. 3901 et seq.), was enacted on statutory and regulatory provisions, and applicable to the importation and April 25, 2003. Section 4 of the Act therefore does not constitute an agency exportation of rough diamonds pursuant requires the President, subject to certain action subject to the notice and to the Clean Diamond Trade Act, as waiver authorities, to prohibit the comment requirements or a delayed implemented by the President in importation into, or exportation from, effective date under the Administrative Executive Order 13312 dated July 29, the United States of any rough diamond, Procedure Act. See 5 U.S.C. 553. The 2003, and the Rough Diamonds Control from whatever source, that has not been Regulations (RDCR) issued by the Office controlled through the KPCS. Section 3 This clarification is consistent with the of Foreign Assets Control of the U.S. 5(a) of the Act authorizes the President Commission’s Report Analysis Division Review and Department of the Treasury. In addition to issue such proclamations, Referral Procedures for the 2011–2012 Election regulations, licenses, and orders, and Cycle, p. 96 (http://www.fec.gov/pdf/ to restating pertinent provisions of the RAD_Procedures.pdf). Similarly with RDCR, the amendments clarify that any conduct such investigations, as may be reimbursements to committee staff, the U.S. person exporting from, or necessary to carry out the Act. Section Commission’s Reports Analysis Division has been importing to, the United States a 5(b) of the Act sets forth the general sending Requests for Additional Information to recordkeeping requirements that apply authorized committees that did not provide memo shipment of rough diamonds must entries for credit card payments above the retain for a period of at least five years to persons seeking to export from or applicable thresholds since the 1983–1984 election a copy of the Kimberley Process import into the United States any rough cycle. diamonds. Section 5(b) specifically 4 Unlike the former two circumstances, this Certificate that currently must accompany such shipments and make provides that any United States person scenario is not addressed in the Commission’s seeking to export from or import into Reports Analysis Division Review and Referral the copy available for inspection when Procedures for the 2011–2012 Election Cycle that requested by CBP. The document also the United States any rough diamonds has been made public with redactions. Although shall keep a full record of, in the form the Reports Analysis Division will initiate a regular requires formal entry for shipments of rough diamonds. of reports or otherwise, complete practice of sending Requests for Additional information relating to any act or Information for failure to itemize the vendor for DATES: Effective August 7, 2013. candidate out-of-pocket expenditures on behalf of transaction to which any prohibition his or her authorized committee, this portion of the FOR FURTHER INFORMATION CONTACT: imposed under section 4(a) of the Act interpretive rule will be applied prospectively. The Brian Barulich, Regulations and applies. Section 5(b) further provides adequacy of the responses to Requests for Rulings, Office of International Trade, Additional Information on this issue will only be that such person may be required to judged for those sent after the adoption of this (202) 325–0059. furnish such information under oath, interpretive rule. SUPPLEMENTARY INFORMATION: including the production of books of

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account, records, contracts, letters, Submission of Kimberley Process CFR 758.7). The commenter also noted memoranda, or other papers, in the Certificates’’ and ‘‘Revised Notice of two CBP rulings and asserted that custody or control of such person. In Request for Faxed Submission of through these rulings, CBP is instructing addition to CBP having the authority to Kimberley Process Certificates,’’ the public to mount rough diamonds to apply the customs laws to import requiring importers, brokers, and parties escape regulatory controls. Finally, the violations of the Act, section 8 involved in the export of rough commenter requested information on authorizes CBP and U.S. Immigration diamonds to immediately fax their the amount of time and money that was and Customs Enforcement (ICE), as Kimberley Process Certificates spent to develop the proposed appropriate, to assess penalties and (including voided certificates) to the rulemaking. enforce the export laws and regulations. U.S. Census Bureau upon clearance of CBP Response: See also 15 CFR 30.70. Therefore, their shipments into the commerce of While some of the proposed pursuant to section 8, CBP may assess the United States by CBP or upon export amendments restate the pertinent penalties for export recordkeeping of their shipments from the United provisions of the RDCR and cross- violations. However, CBP notes that the States, as applicable. reference other agency regulations penalties issued pursuant to section 19 On August 15, 2012, CBP published a related to rough diamonds (e.g., 15 CFR U.S.C. 1509(g) for failure to comply with proposed rule in the Federal Register part 30), CBP has made substantive 19 U.S.C. 1509(a)(1)(A) do not apply to (77 FR 48918) proposing to amend title changes to its regulations through the recordkeeping requirements for export 19 of the Code of Federal Regulations other proposed amendments. For documents. (19 CFR) to restate pertinent provisions example, the proposed amendments On July 29, 2003, the President issued of the RDCR issued by OFAC. The clarify that any U.S. person exporting Executive Order 13312 (published in the document also proposed to make from or importing into the United States Federal Register (68 FR 45151) on July amendments to clarify that any U.S. a shipment of rough diamonds must 31, 2003) to implement the Act, person exporting from or importing into retain for a period of at least five years effective for rough diamonds imported the United States a shipment of rough a copy of the Kimberley Process into, or exported from, the United States diamonds must retain for a period of at Certificate that currently must on or after July 30, 2003. least five years a copy of the Kimberley accompany such shipments and make Process Certificate that currently must the copy available for inspection when III. Existing Regulations and requested by CBP. CBP also proposed to Requirements accompany such shipments and make the copy available for inspection when amend its current regulations to require CBP notes that persons importing into requested by CBP. CBP solicited public formal entry for shipments of rough or exporting from the United States a comments on the proposed rule. diamonds pursuant to the authority shipment of rough diamonds must provided in 19 U.S.C. 1484 and comply with the requirements of CBP, Discussion of Comments 1498(a)(1)(B). The restatements of the the Office of Foreign Assets Control Two commenters responded to the other agency regulations and the cross- (OFAC) of the Department of the solicitation of public comments in the references are made for the convenience Treasury (31 CFR part 592), and the U.S. proposed rule. The comments are of the importing public who use the Census Bureau (15 CFR part 30). Such discussed below. CBP regulations as a resource. persons should also be aware of any Comment: The particular existing regulations relevant Internet postings, guidance One commenter applauded the cited by the commenter do not affect the documents, or Federal Register notices purpose of the Clean Diamond Trade necessity of the amendments made in issued by the U.S. Department of State. Act but stated that it has not been this document. Specifically, section Also, it should be noted that ICE can effective in helping people determine 127.4 of title 22 of the CFR (22 CFR take enforcement action on illegally whether they are purchasing ‘‘blood’’ 127.4), is not directly related to the imported and exported rough diamonds. diamonds. importation or exportation of rough See 19 U.S.C. 3907. Examples of the CBP Response: diamonds as it relates to defense other government requirements are The Clean Diamond Trade Act articles, technical data, or defense provided below. OFAC, acting pursuant implements the Kimberley Process services; section 161.2 of title 19 of the to Executive Order 13312 and other Certification Scheme (KPCS) for rough CFR (19 CFR 161.2) states that CBP authorities, published in the Federal diamonds. The KPCS is a process, based enforces the laws of some other Register (69 FR 56936) the Rough on international cooperation and on the government agencies and provides Diamonds Control Regulations (RDCR) commitment of the entire supply chain, examples of those agencies; and the (31 CFR part 592) on September 23, to prevent the importation, or Department of Commerce regulation, 2004. To be controlled through the exportation, of conflict diamonds. One section 758.7 of title 15 of the CFR (15 KPCS, the RDCR require that all purpose of this rulemaking is to make CFR 758.7), requires, in relevant part, shipments of rough diamonds imported the Clean Diamond Trade Act as that CBP take appropriate action to into, or exported from, the United States effective as possible. comply with the Export Administration must be accompanied by an original Comment: Regulations. Kimberley Process Certificate. See 31 One commenter questioned the CBP also disagrees with the CFR 592.301(a)(1). The RDCR also necessity of this proposed rule given the commenter’s description of CBP require that all importers and exporters existing U.S. Census Bureau regulations administrative rulings, New York Ruling of rough diamonds file an annual report (15 CFR part 30) and the OFAC Letter (NY) N018792 and Headquarters with the U.S. Department of State regulations (31 CFR part 592) on rough Ruling Letter (HQ) H173035. CBP notes regarding their import and/or export diamonds, section 161.2 of the CBP that HQ H173035 modified NY N018792 activity and stockpile information. See regulations (19 CFR 161.2), the Clean and notification of the modification was 31 CFR 592.502. Diamond Trade Act (19 U.S.C. 3901 et published in the Customs Bulletin, Vol. The U.S. Census Bureau issued seq.), section 127.4 of the U.S. 46, No. 46, on November 7, 2012 after notices on December 12, 2005, and Department of State regulations (22 CFR a notice of the proposed action was April 3, 2007, respectively entitled 127.4), and section 758.7 of the U.S. published in the Customs Bulletin, Vol. ‘‘Notice of Request for Faxed Export Administration regulations (15 46, No. 13, on March 21, 2012. In its

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modified ruling, CBP clarified that 601 et seq.), as amended by the Small merchandise, Reporting and jewelry set with tumbled diamonds Business Regulatory Enforcement and recordkeeping requirements, Restricted imported from Zambia are not rough Fairness Act of 1996. A small entity may merchandise, Sanctions. diamonds and therefore are not subject be a small business (defined as any 19 CFR Part 163 to the KPCS and are not prohibited from independently owned and operated importation under the U.S. Clean business not dominant in its field that Administrative practice and Diamond Trade Act (19 U.S.C. 3901); qualifies as a small business per the procedure, Customs duties and however, CBP noted that loose tumbled Small Business Act); a small not-for- inspection, Exports, Imports, Penalties, diamonds from Zambia are not profit organization; or a small Reporting and recordkeeping admissible into the United States governmental jurisdiction (locality with requirements. because tumbled diamonds are fewer than 50,000 people). 19 CFR Part 178 considered rough and Zambia is not a CBP has considered the impact of this member of the KPCS. Please note that rule on small entities. As discussed in Administrative practice and rulings are binding on the ruling the NPRM, this rule clarifies that any procedure, Imports, Reporting and requester and are tailored to the specific U.S. person exporting from or importing recordkeeping requirement. facts and circumstances of the particular into the United States a shipment of Amendments to the CPB Regulations case at issue. rough diamonds must retain a copy of For the reasons set forth above, parts Conclusion the Kimberley Process Certificate for a 12, 163, and 178 of title 19 of the Code period of five years and make this copy of Federal Regulations (19 CFR parts 12, After review of the comments and available for inspection at the request of further consideration, CBP has decided 163, and 178) are amended as set forth CBP or face penalties, that may be below. to adopt as final the proposed rule greater than $500 (in 1980 dollars), published in the Federal Register (77 pursuant to 19 U.S.C. 1509 or 3907. CBP PART 12—SPECIAL CLASSES OF FR 48918) on August 15, 2012. believes the costs of retaining a copy of MERCHANDISE Executive Order 12866 and 13563 the Kimberley Process Certificate for five years and providing the copy to ■ 1. The general authority citation for Executive Orders 12866 and 13563 CBP upon request to be negligible. part 12, CBP regulations, continues, and direct agencies to assess the costs and Additionally, as discussed in the NPRM, a new specific authority citation for benefits of available regulatory CBP subject matter experts do not § 12.152 is added, to read as follows: alternatives and, if regulation is believe this rule will increase necessary, to select regulatory Authority: 5 U.S.C. 301; 19 U.S.C. 66, noncompliance with the KPCS for small approaches that maximize net benefits 1202 (General Note 3(i), Harmonized Tariff entities. During the comment period of Schedule of the United States (HTSUS)), (including potential economic, the NPRM, CBP did not receive any 1624. environmental, public health and safety comments that would amend these * * * * * effects, distributive impacts, and conclusions. Thus, CBP certifies that Section 12.152 also issued under 19 U.S.C. equity). Executive Order 13563 this rule will not have a significant 1484, 1498; the Clean Diamond Trade Act emphasizes the importance of impact on a substantial number of small (Pub. L. 108–19, 117 Stat. 631 (19 U.S.C. quantifying both costs and benefits, of 3901 et seq.)); Executive Order 13312 dated entities. reducing costs, of harmonizing rules, July 29, 2003. and of promoting flexibility. This rule is Paperwork Reduction Act ■ 2. Section 12.152 is added to read as not a ‘‘significant regulatory action,’’ Under the Paperwork Reduction Act, follows: under section 3(f) of Executive Order an agency may not conduct or sponsor, 12866. Accordingly, OMB has not § 12.152 Prohibitions and conditions on and an individual is not required to the importation and exportation of rough reviewed this regulation. respond to, a collection of information This rule increases CBP’s ability to diamonds. unless it displays a valid OMB control verify whether importations or (a) General. The Clean Diamond number. The collections of information exportations of rough diamonds are in Trade Act (Pub. L. 108–19) requires the contained in these regulations are compliance with the KPCS. OFAC President, subject to certain waiver provided for by OMB control number published the RDCR requiring the authorities, to prohibit the importation 1505–0198, to cover the requirements ultimate consignee to retain the original into, or exportation from, the United concerning CBP Form 7501, and by of the Kimberley Process Certificate. States, of any rough diamond, from OMB control number 1651–0076, to The amendments clarify that any U.S. whatever source, that has not been cover the recordkeeping requirement. person exporting from or importing into controlled through the Kimberley the United States a shipment of rough Signing Authority Process Certification Scheme. By Executive Order 13312 dated July 29, diamonds must retain a copy of the This document is being issued in Kimberley Process Certificate for a 2003, published in the Federal Register accordance with § 0.1(a)(1) of the CBP (68 FR 45151) on July 31, 2003, the period of five years and make this copy Regulations (19 CFR 0.1(a)(1)) available for inspection at the request of President implemented the Clean pertaining to the authority of the Diamond Trade Act, effective for rough CBP or face penalties pursuant to 19 Secretary of the Treasury (or his/her U.S.C. 1509 or 3907. CBP believes the diamonds imported into, or exported delegate) to approve regulations related from, the United States on or after July costs of retaining a copy of the to certain customs revenue functions. Kimberley Process Certificate for five 30, 2003. Pursuant to Executive Order years and producing the copy to CBP List of Subjects 13312 and other authorities, the Office upon request to be negligible. of Foreign Assets Control (OFAC), 19 CFR Part 12 Department of the Treasury, Regulatory Flexibility Act Customs duties and inspection, promulgated the Rough Diamonds This section examines the impact of Economic sanctions, Entry of Control Regulations (see 31 CFR part the rule on small entities as required by merchandise, Foreign assets control, 592). Any persons importing into or the Regulatory Flexibility Act (5 U.S.C. Exports, Imports, Prohibited exporting from the United States a

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shipment of rough diamonds must electronic equivalent filed with CBP in ■ 5. The Appendix to part 163 is comply with the requirements of CBP, connection with an importation of amended by adding a new listing under OFAC, and the U.S. Census Bureau (15 rough diamonds must retain the original section IV in numerical order to read as CFR part 30). Kimberley Process Certificate for a follows: (b) Definitions. For purposes of this period of at least five years from the Appendix to Part 163—Interim (a)(1)(A) section, the following definitions apply: date of importation and must make the List (1) Controlled through the Kimberley certificate available for examination at Process Certification Scheme. the request of CBP. * * * * * ‘‘Controlled through the Kimberley (2) Importer. The U.S. person that IV. * * * Process Certification Scheme’’ means imports into the United States a § 12.152 Kimberley Process Certificate for meeting the requirements set forth in 31 shipment of rough diamonds must rough diamonds. CFR 592.301; retain a copy of the Kimberley Process * * * * * (2) Kimberley Process Certificate. Certificate accompanying the shipment ‘‘Kimberley Process Certificate’’ means a for a period of at least five years from PART 178—APPROVAL OF forgery resistant document that meets the date of importation and must make INFORMATION COLLECTION the minimum requirements listed in the copy available for examination at REQUIREMENTS Annex I of the Kimberley Process the request of CBP. Certification Scheme, as well as the (3) Exporter. The U.S. person that ■ 6. The authority citation for part 178 requirements listed in 31 CFR 592.307; exports from the United States a continues to read as follows: (3) Rough diamond. ‘‘Rough shipment of rough diamonds must diamond’’ means any diamond that is Authority: 5 U.S.C. 301; 19 U.S.C. 1624, retain a copy of the Kimberley Process 44 U.S.C. 3501 et seq. unworked or simply sawn, cleaved, or Certificate accompanying the shipment ■ 7. Section 178.2 is amended by adding bruted and classifiable under for a period of at least five years from a new listing to the table in numerical subheading 7102.10, 7102.21, or the date of exportation and must make order to read as follows: 7102.31 of the Harmonized Tariff the copy available for examination at Schedule of the United States; the request of CBP. § 178.2 Listing of OMB control numbers. (4) United States. ‘‘United States’’, when used in the geographic sense, PART 163—RECORDKEEPING 19 CFR OMB Control means the several states, the District of Section Description No. Columbia, and any commonwealth, ■ 3. The specific authority citation for territory, or possession of the United part 163 is revised and the general States; and authority citation continues to read as ***** (5) United States person. ‘‘United follows: § 12.152 ... Certificate and 1505–0198 States person’’ means: record- and 1651– Authority: 5 U.S.C. 301; 19 U.S.C. 66, (i) Any United States citizen or any keeping re- 0076. 1484, 1508, 1509, 1510, 1624. quirements alien admitted for permanent residence * * * * * for the entry into the United States; of rough dia- (ii) Any entity organized under the Section 163.2 also issued under 19 U.S.C. 3904, 3907. monds. laws of the United States or any jurisdiction within the United States * * * * * ***** (including its foreign branches); and ■ 4. In § 163.2, paragraph (c) is revised to read as follows: (iii) Any person in the United States. Thomas S. Winkowski, (c) Original Kimberley Process Certificate. A shipment of rough § 163.2 Persons required to maintain Deputy Commissioner, Performing the duties records. of the Commissioner of U.S., Customs and diamonds imported into, or exported Border Protection. from, the United States must be * * * * * Approved: June 28, 2013. accompanied by an original Kimberley (c) Recordkeeping required for certain Process Certificate. exporters—(1) NAFTA. Any person who Timothy E. Skud, (d) Formal Entry Required. Formal exports goods to Canada or Mexico for Deputy Assistant Secretary of the Treasury. entry is required when importing a which a Certificate of Origin was [FR Doc. 2013–15972 Filed 7–5–13; 8:45 am] shipment of rough diamonds. Formal completed and signed pursuant to the BILLING CODE 9111–14–P entry procedures are prescribed in part North American Free Trade Agreement 142 of this chapter. must also maintain records in (e) Report of Kimberley Process accordance with part 181 of this DEPARTMENT OF STATE Certificate Unique Identifying Number. chapter. Customs brokers, importers, and filers (2) Kimberley Process Certification 22 CFR Part 123 making entry of a shipment of rough Scheme. Any U.S. person (see definition RIN 1400–AD07 diamonds must either submit through in § 12.152(b)(5)) who exports from the CBP’s Automated Broker Interface (ABI) United States any rough diamonds must [Public Notice 8371] system the unique identifying number retain a copy of the Kimberley Process International Traffic in Arms of the Kimberley Process Certificate Certificate accompanying each shipment Regulations: Canadian Firearms accompanying the shipment or, for non- for a period of at least five years from Components Exemption ABI entries, indicate the certificate the date of exportation. See 19 CFR number on the CBP Form 7501, Entry 12.152(f)(3). Any U.S. person who AGENCY: Department of State. Summary, on each applicable line item. exports from the United States any ACTION: Final rule. (f) Maintenance of Kimberley Process rough diamonds and does not keep Certificate—(1) Ultimate consignee. The records in this time frame may be SUMMARY: The Department of State is ultimate consignee identified on the subject to penalties under 19 U.S.C. amending the International Traffic in CBP Form 7501, Entry Summary, or its 3907. Arms Regulations to implement a

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