Effective November 15, 2016, exporters will be required to begin using the new unified Destination Control Statement (DCS) on their commercial invoice for tangible items controlled under the Export Administration Regulations (EAR) or the International Traffic in Arms Regulations (ITAR). The statement reads as follows:
“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.”
The statement is not required for items on the Commerce Control List (CCL) that are classified as EAR99. Additionally,the final rule removes the requirement for placing the DCS on transportation documents including the bill of lading, air waybill, or other shipping documents.
The above changes were announced by the State Department’s Directorate of Defense Trade Controls (DDTC) and the Commerce Department’s Bureau of Industry & Security (BIS) in the Federal Register on August 17, 2016 (81 FR 54732 and 81 FR 54721, respectively). To further discuss the changes to export regulations, please call (518) 298-8281 or send an email to Deringer’s Compliance Department.