Part of the ECR initiative, the long awaited harmonization to the Destination Control Statements (DCS) in both the ITAR and EAR has been published. The Department of State (DDTC) posted the revision in Federal Register Notice (FRN) 201619550 and Department of Commerce (BIS) posted the revised language in Federal Register Notice (FRN) 201619551 on August 17, 2016.
This new statement which will be used for all ITAR or EAR shipments is effective 11/15/2016.
ITAR 123.9 (b)(iv) and BIS 758.6(a)(i) will read 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 enduser(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 enduser(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”
BIS and DDTC have clarified that the DCS must be an integral part of the Commercial Invoice only and that the DCS is applicable to tangible exports, whether shipped, retransferred or reexported.
The change to ITAR 123.9 also requires that exporters identify on the commercial invoice the country of ultimate destination, the end user, the license or other approval or exemption citation.
This change impacts U.S. exporters and Foreign parties. Companies will need to revise their company procedures and internal template documents.
Both agencies have added their own clarifying “Notes” to the revised regulations along with making other regulatory changes or reaffirming obligations to specify when EAR components are exported as part of an ITAR shipment and the obligation under the EAR to note the ECCNs when exporting 600 and 9A515 ECCNs.
If you would like to learn more about the changes in effect November 15, 2016 please contact your FD Associates consultant or attend one of our upcoming workshops.