Dear Secretary
I am writing to outline my expectations for how the Department of Industry, Science and Resources will administer the export permissions for the Kimberley Process Certification Scheme (KPCS).
As you are aware, I have delegated the department authority to administer the export permissions for rough diamonds in accordance with the KPCS. The need to control these exports reflects Australia’s commitment as a participant in the KPCS to breaking the link between the trade in rough diamonds and the financing of armed conflict.
I have set out my expectations for the department’s administration of the scheme below to ensure it continues to be effective and compliant with regulatory guidance provided by the Department of Finance in their Resource Management Guide 128 (RMG 128).
Kimberley Process Certification Scheme
The KPCS brings together governments, civil society, and industry to curb the trade in conflict diamonds, which are diamonds in their natural state used to fund armed conflicts against governments around the world.
I have authorised the department to administer the scheme as the designated export and reporting authority in accordance with regulation 9AA of the Customs (Prohibited Exports) Regulations 1958.
The requirements of the KPCS are reflected in Australia’s domestic legislation:
- The Customs Act 1901 and its subordinate regulations:
- The Customs (Prohibited Exports) Regulations 1958
- The Customs (Prohibited Imports) Regulations 1956
- The Offshore Minerals Act 1994.
Australia’s participation is therefore managed by the following agencies:
- the Department of Foreign Affairs and Trade, who oversee all matters relating to KPCS policy and international engagement
- the Australian Border Force, who oversee all matters relating to the importation of rough diamonds, and compliance and enforcement of Australia’s border control mechanisms
- the Department of Industry, Science and Resources, who oversee all matters relating to the export permissions for rough diamonds.
I will remain engaged with the department in performing this function on my behalf, supporting and enabling the department to adhere to the 3 principles in RMG 128 outlined below.
Principles
Principle 1: Continuous improvement and building trust
I expect that the department will adopt a whole-of-system perspective in performing their role as the export authority for the KPCS, and will seek ways to continuously improve their performance, capability and culture. Such that the department will build trust and confidence in Australia’s regulatory settings, and identity and develop organisational values and a culture that supports best practice.
Principle 2: Risk based, and data driven
I expect that the department will manage risks proportionately, maintaining essential safeguards while minimising regulatory burden. I expect that the department will leverage data and digital technology to support those they regulate to comply and grow. Such that the department will continue to weigh the efficiency and cost-effectiveness of their regulatory actions, seeking to impose the least burden on those they regulate while maintaining those essential safeguards.
Principle 3: Collaboration and engagement
I expect the department will be transparent and responsive in its communications and will implement regulations in a modern and collaborative way. Such that the department will engage in good faith with all external stakeholders, ensure reporting and communication obligations are upheld, and engage in genuine dialogue with other KPCS participants.
I further expect the department will incorporate this statement of expectations into its Public Governance, Performance and Accountability Act 2013 processes, such as corporate and annual reports, and will respond in kind with a statement of intent outlining how the department will meet these expectations.
In conclusion, I outline these expectations to ensure that the department administers this regulatory function in good faith, demonstrating a commitment to best practice, and in accordance with Australia’s domestic regulations and applicable laws.
Yours sincerely
Madeleine King MP