Explanation:

Explanation:
The KPCS is an international certification scheme that regulates trade in rough diamonds. It aims to prevent the flow of conflict diamonds (used by rebel movements to finance armed conflicts) in the legitimate trade of rough diamonds. Apart from states and
regional economic organizations that either produce or trade in rough diamonds, the diamond industry, through the World Diamond Council and civil society observers are also integral part of the KPCS. Hence, statement 1 is correct.
 The KPCS has no permanent office or staff and relies on the contributions under the principle of ‘burden sharing’ made by its members. To check armed unrest in diamond producing countries, KPCS has been supported by UN General Assembly and Security Council resolutions. However, it is implemented through national legislations of its participants. Hence, statement 2 is correct.
 India is one of the founder members of the KPCS. Since 2003, India has been actively participating in the KPCS process. Department of Commerce is the nodal department and Gem & Jewellery Export Promotion Council is designated as the KPCS importing-exporting authority. It is responsible for issuing KPCS certificates and is the custodian of all KP certificates in the country. Hence, statement 3 is incorrect.
 Under KPCS terms, each shipment of rough diamonds being exported or imported is to be accompanied by a validated KPCS certificates. A Kimberley Process Working Group also promotes effective internal controls on the production and trade of artisanal (small scale miners mining for subsistence) and alluvial (diamonds that have been removed from the primary source (kimberlite) by natural erosive action over millions of years and eventually deposited in a new environment such as river bed) diamonds. Hence, statement 4 is incorrect.