Trade Updates

We’re more than just brokers – we’re knowledge leaders. Stay compliant with Customs, and save on your bottom line with recent updates here.

Proposed Harmonization of Export Compliance Statement

Posted May 27, 2015

A Destination Control Statement (DCS) is required by the Bureau of Industry and Security (BIS) in the Export Administration Regulations (EAR) for exports from the United States regarding items on the Commerce Control List that are outside of EAR99 (products for which no license is required) or controlled under the International Traffic in Arms Regulations (ITAR) administered by the Department of State, Directorate of Defense Trade Controls.

A DCS appears on the commercial invoice, ocean bill of lading, or airway bill to notify the carrier and all foreign parties that the item can be exported only to certain destinations. Although it is not a necessary requirement for all shipments, including a DCS on the shipping documentation for every transaction is a recommended precaution in order to guard against non-compliance liability in the event that merchandise sold to a domestic purchaser is subsequently exported to a prohibited country without the original vendor’s knowledge.  

With the implementation of the Export Control Reform (ECR), under which thousands of dual-use items were transferred from the ITAR to the EAR, the number of shipments containing both EAR and ITAR goods has increased tremendously. Since both regulations require a DCS for subject shipments, “This has caused confusion to exporters as to which statement to include on such mixed shipments, or whether to include both. Harmonizing these statements is intended to ease the regulatory burden on exporters.”

The Department of Commerce, Bureau of Industry proposes to align the destination control statement in the EAR with that in the ITAR. Under the proposed rule, §758.6 of the EAR would be amended to match the wording of §123.9(b)(1) of the ITAR. The Proposed Rule BIS-2015-0013 supports the ECR effort to create a single Export Control List, as opposed to maintaining the separate Commerce Control and U.S. Munitions Lists.

The Bureau of Industry and Security will accept comments on this proposed rule until July 6, 2015.