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- Is commenced by Diamonds Act, 1986: Commencement
South Africa
Diamonds Act, 1986
Act 56 of 1986
- Published in Government Gazette 10291 on 25 June 1986
- Assented to on 11 June 1986
- Commenced on 1 October 1986 by Diamonds Act, 1986: Commencement
- [This is the version of this document from 25 June 1986.]
Chapter I
Application of Act
1. Definitions
In this Act, unless the context indicates otherwise—“Board” means the South African Diamond Board established by section 3;“business premises”, in relation to a licensee, means premises of the licensee of which particulars of the location have been endorsed on his licence in terms of section 29(2)(b) or 31(4)(a);“controlling interest”, in relation to—(a)a company, means—(i)more than 50 per cent of the issued share capital of the company;(ii)more than half of the voting rights in respect of the issued shares of the company; or(iii)the power, either directly or indirectly, to appoint or remove the majority of the directors of the company without the concurrence of any other person; or(b)a close corporation, means more than 50 per cent of the interest in the close corporation;“crushed diamond” means any diamond deriving from a diamond which has been subjected to a process of crushing;“cutter” means the holder of a diamond cutting licence contemplated in section 26(b);“dealer” means the holder of a diamond dealer’s licence contemplated in section 26(a);“diamond exchange” means any premises upon which any person permitted in terms of this Act to sell or purchase an unpolished diamond may sell or purchase the unpolished diamond;“diamond powder” means any powder deriving from a diamond which has been subjected to a process of polishing or crushing;“executive officer” means the executive officer of the Board designated in terms of section 5(1)(a);“exporter”, in relation to an unpolished diamond, means any person permitted in terms of this Act to export the unpolished diamond;“fragment” means any part of a diamond separated from the diamond in a process of polishing and which is so irregular in shape or so small in size that it is usually unsuitable for polishing;“inspector” means an inspector appointed under section 80(1);“licence” means a diamond dealer’s licence, diamond cutting licence, diamond tool-making licence or diamond research licence contemplated in section 26;“licensee” means a dealer, cutter, tool-maker or researcher;“Minister” means the Minister of Mineral and Energy Affairs;“partly processed diamond” means a diamond which has been subjected to one or more processes of polishing, but not so many processes that it is in the opinion of the Board a polished diamond, and includes a diamond known as an “acht kant”, but does not include such an “acht kant” which in the opinion of the Board is a polished diamond;“police official” means a police official as defined in section 1(1) of the Criminal Procedure Act, 1977 (Act No. 51 of 1977);“polished diamond” means a diamond which has, in accordance with the requisites of its class or form, been subjected to so many processes of polishing that it is in the opinion of the Board a polished diamond;“polishing”, in relation to any unpolished or polished diamond, means the sawing, cutting, cleaving or dividing in any manner, faceting, brillianteering or altering of that diamond;“prescribed” means prescribed by regulation;“producer” means any person who is in terms of the Precious Stones Act, 1964 (Act No. 73 of 1964), entitled to win or recover diamonds;“purchase”, in relation to an unpolished diamond, means to purchase the unpolished diamond, to deal in it or to obtain it by way of barter, pledge or in any like manner;“register” includes a computer print-out;“registering officer” means any person in the service of the Board or any person referred to in section 13(c) assisting in the administration of a provision of Chapter VI;“regulation” means a regulation made under section 95(1);“researcher” means the holder of a diamond research licence contemplated in section 26(d);“sell”, in relation to an unpolished diamond, means to sell the unpolished diamond, to offer or expose it for sale, barter or pledge or for any like purpose or to dispose of or deliver it for the purpose of trade;“synthetic diamond” means a diamond produced by means of any synthetic, mechanical or chemical process;“this Act” includes a regulation;“tool-maker” means the holder of a diamond tool-making licence contemplated in section 26(c);“unpolished diamond” means a diamond in its natural state or a synthetic diamond which has after the production thereof not been altered in any manner, and includes diamond powder, a crushed diamond, a fragment and a partly processed diamond.2. Provisions of this Act may be applied in respect of other precious stones
The Minister may by notice in the Gazette declare that a provision of this Act shall apply in respect of any other substance referred to in the definition of “precious stones” in section 1 of the Precious Stones Act, 1964 (Act No. 73 of 1964).Chapter II
The South African Diamond Board
3. Establishment of South African Diamond Board
There is hereby established a board to be known as the South African Diamond Board and which shall be a juristic person.4. Objects of Board
The objects of the Board shall be—5. Constitution of Board
6. Persons not qualified to be members of Board
No person shall be appointed as a member or an alternate member of the Board if—7. Term of office of members of Board and filling of vacancies
8. Vacating of office by members of Board
9. Meetings of Board
10. Executive committee
11. Committees for specific purpose
12. Remuneration of members of Board and of executive and other committees
A member or an alternate member of the Board or a member of the executive or any other committee of the Board who is not in the full-time employment of the State may be paid out of the funds of the Board such remuneration and allowances as the Minister may, with the concurrence of the Minister of Finance, determine.13. General functions of Board
In addition to the other functions assigned to the Board by this Act, the Board may—14. Persons in service of Board
15. Executive officer
16. Funds of Board
17. Accounting responsibility
Chapter III
Illegal acts
Possession of and dealing in unpolished diamonds
18. Possession of unpolished diamonds prohibited
Save as is otherwise provided in this Act, no person shall have any unpolished diamond in his possession unless—19. Sale of unpolished diamonds prohibited
20. Purchase of unpolished diamonds prohibited
No person shall purchase any unpolished diamond unless—21. Dealing in unpolished diamonds restricted
No person—Processing of diamonds
22. Processing of diamonds prohibited
No person shall polish any diamond or crush or set any unpolished diamond in any tool, implement or other article unless—23. Erection and operation of machinery prohibited
No person shall erect or operate any machine designed or adapted for the polishing of diamonds unless—Export of unpolished diamonds
24. Export of unpolished diamonds prohibited
No person shall export any unpolished diamond from the Republic unless—General
25. Unpolished diamonds found or picked up by chance
Chapter IV
Licences and permits
Licences
26. Kinds of licences
Subject to the provisions of this Chapter, the Board may issue the following licences, namely—27. Applications for licences
28. Consideration of applications for licences
29. Issue of licences
30. Conditions of licence
31. Business premises
32. Period of validity of licences
33. Transfer of licences by juristic persons prohibited
Unless a licensee is a natural person who has acquired the approval of the Board to transfer his licence in terms of section 34, he shall not in any manner dispose of his licence or allow any other person to acquire any interest therein.34. Applications by natural persons for transfer of licences
35. Controlling interest in companies and close corporations
36. Conversions of companies and close corporations
37. Suspension and cancellation of licences
38. Return of licences
39. Appeal to Minister against decisions of Board in respect of licences
Permits
40. Applications for permits
41. Consideration of applications for permits
The Board may at its discretion grant, on such conditions as it may determine, or refuse an application for a permit under this Act, but the Board shall not grant any application if it is of the opinion that the issue of the permit will be contrary to the public interest.42. Issue of permits
43. Cancellation, variation or imposition of conditions
Chapter V
The diamond trade
Diamond exchanges
44. Utilization of unregistered premises as diamond exchanges prohibited
No person shall utilize any premises as a diamond exchange unless those premises are registered as a diamond exchange in terms of this Chapter.45. Applications for registration of diamond exchanges
46. Consideration of applications for registration of diamond exchanges
47. Registration of diamond exchanges
Premises
48. Dealings in unpolished diamonds restricted to approved premises
49. Approval of premises
50. Processing of diamonds restricted to approved premises
51. Licensees to display names and other particulars at business premises
Every licensee shall display his full name and a description indicating that he is a licensed diamond dealer, diamond cutter, diamond tool-maker or diamond researcher, as the case may be, in a conspicious position and in characters easily legible on the outside of his business premises.Authorized representatives
52. Dealings in unpolished diamonds on behalf of juristic persons restricted to authorized representatives
No natural person shall sell or purchase any unpolished diamond on behalf of a juristic person unless he is registered as an authorized representative of the juristic person in terms of this Chapter.53. Applications for registration of authorized representatives
54. Registration of authorized representatives
Handling of unpolished diamonds
55. Receipt of unpolished diamonds by licensees
No licensee shall receive or purchase any unpolished diamond—56. Notes of receipt or purchase in respect of unpolished diamonds
57. Registers in respect of unpolished diamonds
58. Cutters, tool-makers and researchers to obtain permit to sell or export unpolished diamonds
In order to sell or export any unpolished diamond, other than unpolished diamonds mounted in tools or implements, a cutter, tool-maker or researcher shall obtain a permit referred to in section 40(1)(a) or (c), as the case may be.General
59. Agreements for supply of unpolished diamonds to cutters and tool-makers
Chapter VI
Export of diamonds
Unpolished diamonds
60. Export of unpolished diamonds
No exporter shall export any unpolished diamond from the Republic unless that diamond has been registered and released for export in terms of this Chapter.61. Registration of unpolished diamonds for export
62. Levying of export duty on unpolished diamonds
63. Exemption from export duty
64. Deferment of payment of export duty
65. Examination and valuation of unpolished diamonds
66. Market value
For the purposes of levying export duty on any unpolished diamond in terms of this Chapter—67. Fine in case of difference in values
68. Payment of export duty and fine
69. Release of unpolished diamonds for export
Polished diamonds
70. Export of polished diamonds
No person shall export any polished diamond, irrespective of whether it is set in jewellery or not, from the Republic unless that diamond has been registered and released for export in terms of this Chapter.71. Registration of polished diamonds for export
72. Examination and retention of polished diamonds
The registering officer may—73. Release of polished diamonds for export
74. Exemption from provisions relating to registration of polished diamonds
The Minister may by notice in the Gazette exempt any person or category of persons from the provisions of section 60 or 70 on such conditions as may be specified in the notice.General
75. Board’s decision on unpolished or polished diamonds
If in connection with the export of diamonds the question arises whether any diamond is an unpolished or a polished diamond the Board’s decision thereon shall be final.76. Assessment of value of unpolished and polished diamonds
For the purposes of this Chapter, the value of any unpolished or polished diamond shall be assessed—Chapter VII
Control measures
77. Control over production of diamonds
78. Furnishing Board with information
79. Inquiries by Board
80. Appointment of inspectors
81. Functions of inspectors and police officials
Chapter VIII
Offences, penalties and other judicial matters
82. Offences relating to illegal acts
Any person who—83. Offences relating to diamond trade
Any person who—84. Offences relating to export of diamonds
Any person who—85. Offences relating to functions of Board, inspectors and police officials
Any person who—86. Offences involving fraudulent conduct
Any person who—87. Penalties
Any person who is convicted of an offence under this Act shall be liable—88. Documentary evidence
In any prosecution for an offence under this Act a document which purports to be a licence, permit, certificate or other authority issued or obtained in terms of this Act, or a copy of such a licence, permit, certificate or authority certified as a true copy by a person who purports to be a person in the service of the Board, shall on its production in the court be admissible in evidence and be prima facie proof of the particulars contained therein.89. Presumption
If it is alleged in any prosecution for an offence under this Act that a diamond in respect of which the offence allegedly was committed is an unpolished diamond, it shall be presumed, until the contrary is proved, that the diamond is an unpolished diamond.90. Liability of employer or principal
91. Forfeiture
92. Jurisdiction of magistrates’ courts
Notwithstanding anything to the contrary in any other law contained, a magistrate’s court shall have jurisdiction to impose any penalty provided for in this Act.Chapter IX
General
93. Levies
94. Co-operation with other governments and bodies
For the purposes of implementing an agreement entered into by the Government of the Republic and the government of any other country or territory with a view to the promotion or regulation of the production, processing or marketing of diamonds, the Board may in the Republic or in any such country or territory and on behalf of that government or any body in any such country or territory perform the functions set out in the agreement in question or determined thereunder.95. Regulations
96. Consultation by Board
The Board shall consult the Minister in the exercise of such powers of the Board as the Minister may from time to time determine.97. Assignment of functions
98. Amendment or repeal of laws, and savings
99. Short title and commencement
This Act shall be called the Diamonds Act, 1986, and shall come into operation on a date fixed by the State President by proclamation in the Gazette.History of this document
01 October 1986
Commenced by
Diamonds Act, 1986: Commencement
25 June 1986 this version
11 June 1986
Assented to
Cited documents 2
Legislation 2
1. | Criminal Procedure Act, 1977 | 3591 citations |
2. | General Law Amendment Act, 1974 | 22 citations |
Documents citing this one 37
Gazette 29
Judgment 4
Legislation 4
1. | Mineral and Petroleum Resources Development Act, 2002 | 611 citations |
2. | Precious Metals Act, 2005 | 15 citations |
3. | Diamond Export Levy (Administration) Act, 2007 | 12 citations |
4. | Diamond Export Levy Act, 2007 | 6 citations |