In a joint announcement published in today’s Federal Register (Vol. 81 No. 159 August 17, 2016) the Department of State and Department of Commerce jointly published a Final Rule implementing a newly revised and harmonized Destination Control Statement (DCS) for ITAR and EAR transactions. The new regulations include other required data to be placed on the Commercial Invoice (see below). Note that the DCS is no longer required to be placed on the Bill of Lading, Air Waybill or other export control documents, ONLY on the Commercial Invoice. The new rule has a three month implementation period and becomes effective on November 15 2016. The new REQUIREMENTS are as follows:

A). Transactions under the jurisdiction of the U.S. Export Administration Regulations administered by the Department of Commerce, Bureau of Industry and Security (BIS)

[REQUIRED] on the Commercial Invoice whenever items listed on the Commerce Control List are exported in tangible form EXCEPT NOT REQUIRED IF shipped under license exception BAG,  GFT or if shipment only contains EAR99 items.

  1. ‘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’’ and

 

  1. The ECCN(s) for any 9×515 or ‘‘600 series’’ ‘‘items’’ being shipped (i.e., when exported in tangible form).

 

B) Transactions under the jurisdiction of the International Traffic in Arms Regulations (22 CFR Parts 120-130) under the Department of State, Directorate of Defense Trade Controls (DDTC).

[REQUIRED] The exporter MUST incorporate the following information as an integral part of the commercial invoice, whenever defense articles are to be shipped (exported in tangible form), retransferred (in tangible form), or re-exported (in tangible form) pursuant to a license or other approval under this subchapter: (i) The country of ultimate destination; (ii) The end-user; (iii) The license or other approval number or exemption citation; and the following Destination Control Statement.

“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’’

 

For further details call TSI Global Consulting, LLC at 210-757-0618 or e-mail jonathan.fink@tsiglobalconsulting.com.