A final rule was recently published in the Federal Register, impacting all ITAR (International Traffic in Arms Regulations) and all BIS (Bureau of Industry and Security) controlled exports. Effective November 15, 2016, all ITAR or BIS controlled exports will be required to list a revised Destination Control Statement (DCS) on the commercial invoice.
The Commerce Control List (CCL) contains a listing of every U.S. controlled export. Any item listed on the CCL, that are not classified as EAR99, requires the below revised Destination Control Statement (DCS) to be on the commercial invoice.
The revised DCS should state:
“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.”
Under the final rule, only the commercial invoice must include the revised DCS. At this time, no other commercial documents are required to have the DCS.
The Bureau of Industry and Security (BIS) and the U.S. State Department control and regulate certain exports in an effort to safeguard national security. Dependent on the commodity, destination country, consignee or end user(s), some export shipments require additional clearance or documentation (such as the DCS) to maintain compliance with U.S. law.
So, which types of commodities are on the Commerce Control List (CCL)?
An export license will also be required for any product or service listed on the CCL.
See more information about Destination Control Statement information here.
To prepare for the implementation date, exporters should begin to state the above DCS on commercial invoices to avoid penalties or fines associated with noncompliance. It is the exporter’s responsibility to conduct due diligence when exporting any products or services listed on the CCL.
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