On August 17, 2016, the Commerce Department’s Bureau of Industry and Security (BIS) and the State Department’s Directorate of Defense Trade Controls (DDTC) published final rules in the Federal Register effectively harmonizing the export destination control statements mandated by the Export Administration Regulations (EAR) and the International Traffic in Arms Regulations (ITAR). Generally, under the current rules, destination control statements (“DCS”) are placed on commercial invoices, air waybills, bills of lading and other shipping documents that will accompany export shipments from the United States in order to put the foreign end-users on notice that the goods they are receiving are subject to U.S. laws and regulations and may require prior U.S. government authorization before they can be reexported or retransferred. The ITAR DCS is currently required for all exports, reexports and retransfers of defense articles designated on the U.S. Munitions List (USML) per 22 C.F.R. Section 123.9. Similarly, per 15 C.F.R. Section 758.6 of the EAR, the DCS is required for exports of goods that are subject to the EAR and that are classified in Export Control Classification Numbers (ECCNs)—the EAR DCS is not currently required for goods classified as EAR99; however, it is generally a recommended “best practice” for exporters to utilize the DCS for all export shipments that are subject to the EAR, regardless of an item’s classification.
|Author:||Melissa Miller Proctor|