WDC System of Warranties: the diamond invoice declaration explained

The current warranty statement: exact wording

The current warranty statement (revised 2021, in effect with full implementation from September 2024) reads as follows (World Diamond Council, "System of Warranties," worlddiamondcouncil.org/system-of-warranties, 2024):

The original statement (2002–2021) for comparison

The original warranty statement, used from 2002 until the 2021 revision, read: "The diamonds herein invoiced have been purchased from legitimate sources not involved in funding conflict and in compliance with United Nations resolutions. The seller hereby guarantees that these diamonds are conflict free, based on personal knowledge and/or written guarantees provided by the supplier of these diamonds." (WDC, original SoW documentation, worlddiamondcouncil.org, as cited in JCK and Plumb Club documentation)

The 2021 revision: adding human rights and anti-corruption

The 2021 revision of the WDC System of Warranties was the first significant update to the original 2002 framework. The key additions (WDC, "System of Warranties," worlddiamondcouncil.org, 2024; JCK, "World Diamond Council Debuts New System Of Warranties," September 2021):

Expanded scope beyond conflict-free: The revised SoW requires that sellers, in addition to the conflict-free warranty, confirm adherence to the WDC SoW Guidelines, a separate document that includes commitments to universally accepted principles on human and labour rights, anti-corruption, and anti-money-laundering measures.

Specific international frameworks referenced: The WDC SoW Guidelines reference: the UN Guiding Principles on Business and Human Rights; the ILO Declaration on Fundamental Principles and Rights at Work; the UN Convention Against Corruption; and national AML guidelines compliant with the Financial Action Task Force's 40 Recommendations for Dealers in Precious Metals and Stones (WDC SoW Guidelines, 2nd edition, November 2020, worlddiamondcouncil.org).

Self-assessment requirement: To use the revised warranty statement on an invoice, companies must register on the WDC website and complete an online self-assessment questionnaire confirming their compliance with the SoW Guidelines. The self-assessment must be renewed annually (WDC, "System of Warranties," worlddiamondcouncil.org, 2024).

Implementation deadline: The WDC issued a final call for industry members to complete transition to the revised SoW before September 21, 2024, the end of a three-year grace period for rough diamond transactions under the updated system (Diamond World, "WDC Issues Final Call for Diamond Industry to Transition to Revised System of Warranties Before Deadline," August 2024).

Scope and coverage: what the SoW covers

The SoW covers a wider range of products than the Kimberley Process (WDC, "System of Warranties," worlddiamondcouncil.org, 2024; Plumb Club, "Kimberley Process System of Warranties FAQ," 2022):

The KP covers: rough diamonds only, at the point of export from a producing country.

The SoW covers: rough diamonds, polished diamonds, and jewellery containing diamonds, at every point in the supply chain where these products change hands, including transactions between parties in the same country.

The SoW is B2B (business-to-business) only, the warranty statement appears on trade invoices and memos, not on consumer receipts. When a retailer sells a diamond ring to a consumer, the consumer does not receive a WDC warranty statement on their receipt. The chain of warranty statements exists in the trade supply chain that preceded the retail transaction.

The self-assessment process

To use the revised warranty statement, companies must register at the WDC website (worlddiamondcouncil.org) and complete the online self-assessment questionnaire. The self-assessment is customised based on the size of the company, the specific activities it is involved in (mining, trading, manufacturing, retail), and whether it already complies with other recognised due diligence systems (such as the Responsible Jewellery Council's Code of Practices or De Beers' Best Practice Principles). Completing the self-assessment annually is required to maintain the ability to use the updated warranty statement (WDC, "System of Warranties," worlddiamondcouncil.org, 2024).

Limitations: what the SoW does not do

The SoW has documented limitations that are important for consumers and trade members to understand (Plumb Club FAQ, 2022; JCK reporting, 2018–2021):

It is voluntary, not mandatory: The SoW is a self-regulation system without legal enforcement. However, in practice it is effectively mandatory for members of major diamond bourses (World Federation of Diamond Bourses members) and organisations belonging to the International Diamond Manufacturers Association. It is also required for RJC Code of Practices compliance and CIBJO Responsible Sourcing Blue Book compliance.

It relies on self-declaration: The warranty statement is self-issued by the seller. There is no independent third-party verification that the diamonds on a specific invoice actually meet the standards declared. The system's integrity depends on each party in the chain relying on the warranty of the party that supplied them, a chain of warranties, where each link relies on the previous one.

It does not cover mining conditions completely: The SoW covers conflict-free status and the WDC SoW Guidelines covering human rights and labour principles, but the self-assessment and self-declaration approach means that individual stone-level audit of mining conditions is not achievable through the SoW framework. Independent third-party certification programmes (RJC, specific mine-level certifications) provide more granular assurance for buyers who require it.

Primary sources