November 19, 2009

Rep. Jim McDermott (D-WA), flanked by leaders from World Vision, the Enough Project, Global Witness, and the Information Technology Industry Council, unveiled legislation he will introduce in the U.S. House of Representatives today to help stop trade in conflict minerals that is sustaining a brutal war of unfathomable atrocities, especially against women, in the Congo. Rep. Frank Wolf (R-VA) co-sponsored the bill.

“It is within our power to make a meaningful difference,” Rep. Mcdermott said, “by shining the light of truth into the darkness that currently is the supply chain for minerals mined in war-ravaged Congo that can end up in consumer electronics and other products we use every day.”

The Conflict Minerals Trade Act provides a pragmatic and practical approach. It commissions a map that will overlay areas of conflict with areas rich in mineral resources in the DRC, so refiners will know which mines are likely to fund conflict. The bill also requires importers of potential conflict goods to certify whether or not their imports contain conflict minerals and the United States Trade Representative (USTR) will report to Congress and the public which companies are importing goods containing conflict minerals. The legislation provides a two year period before implementation to enable industries to implement successfully, and it requires industry to use outside auditors to determine whether refiners are indeed conflict-free.

“I intend the make the black market in conflict minerals transparent so that no one can hide behind ignorance, real or intentional,” McDermott said. “Under my legislation, the American people, and the world, will know when a company or industry is using conflict minerals and I think this knowledge will prove much more powerful than any weapon fired by those prosecuting this horrible war.”

McDermott said the Congo’s vast natural resources include coltan, cassiterite, and wolframite as well as valuable derivatives, tantalum, tin, and tungsten. He said these minerals should be a source of prosperity and stability in the region, but have instead financed a war.

“This bill can fire a shot that will be heard round the world,” McDermott said. The Conflict Minerals Trade Act will elevate the visibility of the world’s deadliest ongoing conflict and take further steps to stop the violence through our action in the Departments of State and Commerce. The legislation enjoys the support of a range of advocacy groups, humanitarian organizations, and industry leaders.

The Conflict Minerals Trade Act
Section-by-Section Summary


Section 1. Short Title

Section 2. Findings

Include affirmation of applicability of GATT Article 20.

Section 3. Statement of Policy

States that it is the policy of the United States to monitor and stop commercial activity in conflict minerals in the DRC, and to develop stronger governance and institutions to ensure transparency in cross-border trade.

Section 4. Investigation, Reports, and Strategy

A. Congo Conflict Minerals Map: will clarify which mines in the DRC are likely to finance conflict. The Secretary may add other minerals financing conflict in the DRC, and must publish notice of intent to do so one year in advance.

B. Guidance to Commercial Entities: the Secretaries of State and Commerce work with UN, INGOs to provide guidance to commercial entities on best practices relating to conflict minerals.

C. Strategy: the Secretary of State, with USAID, shall submit a strategy to assist government and institutions to formalize and make transparent mineral trade, outline current and suggested assistance, and describe potential sanctions against those supporting illegal armed groups or human rights violators in DRC.

D. Annual Human Rights Reports: Reports shall include known instances of minerals financing conflict.

E. Annual OECD Report: Shall describe US efforts to ensure US commercial enterprises are doing due diligence to avoid financing DRC conflict.

F. Support of UNGE on DRC Mandate: Supports the renewal of the UN Group of Experts on DRC’s mandate using the voice and vote of the United States.

G. Authorization of Appropriations: “such sums as may be necessary” to the State Department.

Section 5. Sense of Congress:

A. On Assistance for Affected Communities: USAID should expand and coordinate programs to assist those affected.

B. On Future Year Funding: Congress should increase funding for USAID in DRC to support programs in subsection (A).

C. On Coordination of Assistance: The US should work bilaterally and multilaterally to protect the vulnerable in DRC and better manage mineral trade financing conflict.

Section 6. Identification of Goods Containing Conflict Minerals:

A. Potential Conflict Goods List: The Sec. Commerce will compile a Potential Conflict Goods List of articles on the Harmonized Tariff Schedule (HTS) likely to include conflict minerals.

B. Approved Auditors List: The Sec. Commerce, consulting with the Sec. State, the ITC, NGOs, and industry representatives, shall compile a list of approved auditors to audit facilities processing conflict minerals.

C. Regular Auditing of Facilities for Use of Conflict Minerals: The Secretary of Commerce shall seek to ensure that facilities processing conflict minerals subject themselves to random audits by approved auditors at least every four months. Facilities will be defined as ‘conflict mineral free’ or ‘conflict mineral facility’. The Secretary will seek to ensure that auditing determinations and reports are published. Facilities may request additional, private audits. Audit protocols are defined.

Section 7. Requirements Relating to Importation of Articles Containing Conflict Minerals:

A. Declaration of Certain Articles: Beginning in two years, importers must specify whether articles listed on the Potential Conflict Goods List have components that come from processing facilities are designated as ‘uses conflict minerals’ or ‘conflict mineral free’. Recycled metals will be considered ‘conflict mineral free’. Products containing only conflict mineral free components may be labeled as conflict mineral free.

B. Prohibition of Importation of Certain Articles: No unrefined conflict minerals may be introduced into the United States for a commercial purpose.

C. Exemption: The President may exempt certain articles from inclusion on the Potential Conflict Goods List for up to two years if the President determines it is in the national security interest of the US and explains the reasons for that determination.

Section 8. Report by the United States Trade Representative

A. In General: The USTR will publish a report of those importers importing articles from facilities using conflict minerals every six months.

B. Matters to be Included: Each report shall include detailed information on the shipment of conflict mineral goods imported into the US.

Section 9. Penalties

A. Penalties Relating to Conflict Minerals: Section 592 of the Tariff Act (19 USC 1592) applies to fraudulent or negligent declarations upon importation.

B. Publication in the Federal Register: Those penalties imposed under subsection (A) shall be published in the Federal Register.

Section 10. Reports by the Government Accountability Office

A. Initial Report: GAO shall assess the effectiveness of the auditors regularly, and recommend best practices.

B. Follow-up Report: GAO will regularly assess the effectiveness of this act, a description of problems in execution of this Act, description of adverse impact of this Act on communities in the DRC (if any), and recommendations to improve the effectiveness of this Act, resolve problems described, or mitigate impacts.

Section 11. Definitions

United States: means the customs territory of the United States.
Appropriate Congressional Committees:
In the House, means Appropriations, Foreign Affairs, Ways and Means, and Financial Services.
In the Senate, means Appropriations, Foreign Relations, Finance, and Banking, Housing, and Urban Affairs.
C. Conflict Minerals: means columbite-tantalite (coltan), cassiterite, wolframite, or their derivatives, or other conflict zone mine minerals designated by the Secretary of State.

Section 12. Sunset

This act expires when no ongoing conflict is being financed by conflict minerals in the DRC, or when a regional framework to reduce the financing of conflict with minerals has been established.