System of Warranties
The System of Warranties (SoW), which complements the KPCS, requires buyers and sellers of rough diamonds, polished diamonds and jewelry set with diamonds to include a warranty statement on B2B invoices and memos each time a diamond change hands, assuring the next buyer that it originated from sources in compliance with the KPCS. In its updated form, it also assures the buyer that essential responsible business practices have been followed. These include fundamental human and labor rights, anti-money laundering and anti-corruption.
“The diamonds herein invoiced have been purchased [or “sourced”*] from legitimate
sources not involved in funding conflict, in compliance with United Nations
Resolutions and corresponding national laws [where the invoice is generated**].
The seller hereby guarantees that these diamonds are conflict free and confirms
adherence to the WDC SoW Guidelines.”
* “sourced” may be used by companies that do not purchase from open market, but source and aggregate diamonds from production facilities that are owned/partly owned by them.
** “where the invoice is generated” may be used by companies if they specifically want to reference the country of invoice issuance.
A business standard involves a set of measurable benchmarks, which can be audited. In this respect, in and of itself, the SoW is not a business standard. However, in the diamond business, implementation of the SoW is standard operating procedure. As such is a requirement of leading industry business standards, such as the Code of Practices of the Responsible Jewellery Council (RJC).
The SoW is a chain of warranties, whereby the seller issuing the warranty statement relies upon the integrity of warranty statement that preceded it, which was issued by the party from which he or she purchased the diamonds. Any change to the wording of one of those warranty statements may dilute the veracity of the commitment being made sellers, as the diamonds move further down the chain of distribution.
Companies that are already compliant with certain industry self-regulation systems will automatically be recognized by the online tool as meeting The SoW minimum requirements. Such self-regulation systems include the RJC Code of Practices.
The information that WDC retains is only data required to enable registration, and to provide the filters for the customization of the questionnaire.
No, all the data provided is considered proprietary.
After you successfully complete the online self-assessment, the system will generate a PDF with your responses. It is recommended that you print it and/or store it on your own system. This copy may be shared with business partners to show that you are in compliance with the WDC System of Warranties.