Exporters, we all know about the Destination Control Statement that goes on our shipping documents for export of items that are controlled. We do know about this, don’t we? If not, we need to have a little chat.
The Export Administration Regulations (EAR), of the Department of Commerce, Bureau of Industry and Security (BIS), has long required in 15 CFR 758.6 a Destination Control Statement that reads:
These items are classified under Export Control Classification Number(s) (ECCN(s)) [fill-in the ECCNs for which CC 1 or 3 or RS 2 are listed as reasons for control] and destined to [destination country]. Authorization for reexport from India may be required from the U.S. Department of Commerce.
But for defense goods, the International Traffic in Arms Regulations (ITAR) of the Department of State, Directorate of Defense Trade Controls (DDTC) has required over in 22 CFR 123.9 their own statement that was different:
These commodities are authorized by the U.S. Government for export only to [country of ultimate destination] for use by [end-user] under [license or other approval number or exemption citation]. They may not be resold, diverted, transferred, or otherwise be disposed of, to any other country or to any person other than the authorized end-user or consignee(s), either in their original form or after being incorporated into other end-items, without first obtaining approval from the U.S. Department of State or use of an applicable exemption.
Effective 15 November 2016, there will be just one Destination Control Statement that can be used for exports of both defense goods and commercial goods:
These items are controlled by the U.S. Government and authorized for export only to the country of ultimate destination for use by the ultimate consignee or end-user(s) herein identified. They may not be resold, transferred, or otherwise disposed of, to any other country or to any person other than the authorized ultimate consignee or end-user(s), either in their original form or after being incorporated into other items, without first obtaining approval from the U.S. government or as otherwise authorized by U.S. law and regulations.
Yes, it’s a little longer, but no longer than including both when your export shipment contained both ITAR controlled goods and Commerce controlled goods. And it does a little better job of drawing, not only the exporter’s attention, but also the foreign consignee’s attention, to their obligations.
In addition, the new Destination Control Statement will only be required on the exporter’s commercial invoice, not on bills of lading, manifests, or other shipping documents. Freight forwarders are gonna love this.
For full details, or if you’re just suffering from a little insomnia, here are the Federal Register Documents: