APPENDIX III

TRANSITIONAL DIAMOND EXPORT LEVY PROVISIONS

(Section 115)

Definitions

1. For purposes of this Schedule unless the context indicates otherwise, any word or expression to which a meaning has been assigned in the Diamonds Act, 1986 (Act No. 56 of 1986), bears the meaning so assigned for purposes of this Schedule.

Extension of former section 59 agreements

2. Section 39 of the Diamonds Amendment Act, 2005 (Act No. 29 of 2005) is hereby amended (1) by the substitution in subsection (9) for section 31 of the following subsection-

"(9) Any-

(a) certificate, permit, licence, exemption or any form of authorization issued before the date on which section 4 of this Act takes effect (other than an exemption or certificate of exemption described in paragraph (b)) continues in force for a period not exceeding one year as from that date, subject to the terms and conditions under which it was granted or issued or was deemed to have been granted or issued: or

(b) exemption (or certificate of exemption) described in section 63 continues in force until a date fixed by the Minister of Finance by proclamation in the Gazette subject to the terms and conditions under which it was granted or issued or was deemed to have been granted or issued.".

Exemption from export duty

3. Section 63 of the Diamond Act, 1986 (No. 56 of 1986 ) is hereby amended-
(1) by the deletion of subparagraph (ii) of paragraph (a) for subsection(1);

(2) by the insertion after paragraph (c) for subsection (1) of the following paragraphs -

(d) if that diamond is exported by a person that has allocated or offered its unpolished diamonds pursuant to an agreement in terms of section 59 in force before the date of operation as proclaimed by the President in terms of the Diamonds Second Amendment Act, 2005 (Act No. 30 of 2005); or

(e) in respect of an unpolished diamond of a person other than a person described in paragraph (d) , if that exported diamond has been previously offered but not sold at a diamond exchange and export center.”

Commencement and termination

4. This Schedule shall come into operation on 1 July 2007.