U.S. Exporters: Destination Control Statements (DCS) Changing
The U.S. Bureau of Industry and Security (BIS) and the Department of State issued dual Federal Register notices on August 17th finalizing a common destination control statement (DCS). When required, the DCS should be included on the exporter’s commercial invoice.
The new DCS, which will take effect November 15, 2016 reads:
“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”
Beginning regulatory text (amends 15 CFR section 758.6)
PART 758—[AMENDED]
1.The authority citation for part 758 is revised to read as follows:
Authority:
50 U.S.C. 4601 et seq.; 50 U.S.C. 1701 et seq.; E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; Notice of August 4, 2016, 81 FR 52587 (August 8, 2016).
2.Section 758.6 is revised to read as follows:
- 758.6 Destination control statement and other information furnished to consignees.
(a) The exporter must incorporate the following information as an integral part of the commercial invoice whenever items on the Commerce Control List are shipped (i.e., exported in tangible form), unless the shipment (i.e., the tangible export) may be made under License Exception BAG or GFT (see part 740 of the EAR) or the item is designated as EAR99:
(1) The following 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” and
(2) The ECCN(s) for any 9×515 or “600 series” “items” being shipped (i.e., exported in tangible form).
Note 1 to paragraph (a).
In paragraph (a)(1), the term `authorized’ includes exports, reexports and transfers (in-country) designated under No License Required (NLR).
Note 2 to paragraph (a).
The phrase `country of ultimate destination’ means the country specified on the commercial invoice where the ultimate consignee or end user will receive the items as an “export.”
Note 3 to paragraph (a).
The phrase `or as otherwise authorized by U.S. law and regulations’ is included because the EAR contain specific exemptions from licensing (e.g., EAR license exceptions and NLR designations) and do not control the reexport of foreign-made items containing less than a de minimis amount of controlled content. See § 734.4 and Supplement No. 2 to part 748.
State Department Federal Register notice
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