"The trading of conflict diamonds funds the violent activities of rebel groups in Africa who disregard government order and subject peaceful citiziens to strife and upheaval," said Bill Thomas, chairman of the Ways and Means Committee, after the House's 419-2 vote.

"The United States is committed to banning the trade of these gems," Thomas said in a statement.

The Senate is now due to move forward on a companion bill to the Clean Diamond Act, after which the two would be harmonized and finally signed into law by US President George W. Bush.

The bill seeks to finalize the structure of the Kimberley Process, to oversee diamond trade between nations and individuals worldwide using certificates verifiable at government level.

Fifty-two countries last November announced that they had formally adopted the Kimberley Process, which was launched in South Africa in 2000 and is supported by the United Nations.

Forty-six countries said they would implement the scheme on January 1, 2003, and a further six countries pledged to set it up by the end of 2003.

'Conflict' or 'blood' diamonds are mined in areas of conflict and help finance civil wars in countries such as Sierra Leone, Angola and Democratic Republic of Congo.

Under the system, all batches of imported uncut diamonds must be accompanied by a specially-produced "unforgeable" document issued by national authorities, stating the country of origin of the diamonds.

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