The Kimberley Process Certification Scheme (KPCS), created in 2003 by governments, non-governmental organizations and the diamond industry to eradicate conflict diamonds from the world's diamond supply, and the Clean Diamond Trade Act of 2003 provided a framework for building a global diamond market that is today over 99% certified to be from conflict-free sources. Eiseman has further taken measures against the conflict diamond trade by developing a conflict diamond compliance program, which requires our diamond vendors to provide proof of warranty from their sources of diamond merchandise.
Since the adoption of KPCS and the signing into law of the Clean Diamond Trade Act, Eiseman has developed a conflict diamonds compliance program, starting with the revision of its Vendor Code of Conduct to include the Kimberley Process chain of warranties. The revised code specifically requires all Eiseman vendors to guarantee that the diamonds and diamond-containing jewelry they provide to Eiseman are conflict-free. Since the implementation of the revised code, Eiseman has consistently received the following warranty from Eiseman vendors supplying diamonds and diamond jewelry:
"The diamonds herein invoiced have been purchased from legitimate sources not involved in funding conflict and in compliance with United Nations Resolutions. The undersigned hereby guarantees that these diamonds are conflict-free, based on personal knowledge and/or written guarantees provided by the supplier of these diamonds."
Other significant measures Eiseman has instituted include, but are not limited to, requiring our diamond vendors to provide proof of warranty from their sources of diamond merchandise upon request, training store associates on the Eiseman conflict diamond program and auditing our processes for compliance. Eiseman has also required its vendors to recertify their adherence to KPCS.
Our Conflict Diamonds Policy
We take the issue of conflict diamonds very seriously. Eiseman is making every effort to bar conflict diamonds from its inventory and provide assurances to our customers that the diamonds we sell are from legitimate sources.
Conflict diamonds are diamonds mined in certain African combat zones that have fueled and funded civil war and gross abuses against the civilian population. Such diamonds are estimated to currently account for less than 1% of the world diamond production.
All of the nations with significant involvement in the diamond trade and the leading industry associations cooperated in creating a global certification system aimed at preventing criminals from placing these conflict diamonds into the legitimate diamond supply chain. To supplement this government effort, leading organizations in the jewelry industry have created a voluntary program of self-regulation.
We fully support this program and will do everything we can to make the new system work. Diamonds are a symbol of love and we want our customers to have confidence that we are using our best efforts to both bar conflict diamonds from our inventory and sell diamonds and diamond jewelry that are "conflict-free."