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Start using this new ITAR destination control statement immediately

November 1, 2013

By Marci Gentry, Sr. Consultant, Export Solutions

If you haven’t already, it’s time to update your ITAR destination control statement on your commercial invoices.

As part of the Export Control Reform that implemented on October 15, 2013, a new destination control statement should be used on your export paperwork. This change is effective immediately. The Destination Control Statement is required on the Bill of Lading (BoL) or Air Way Bill (AWB) and other export documents (e.g. commercial invoice).

Here’s the new destination control statement from §123.9(b) of the ITAR:

“These commodities are authorized by the U.S. Government for export only to [country of ultimate destination] for use by [end-user] under [license or other approval number or exemption citation]. They may not be resold, diverted, transferred, or otherwise be disposed of, to any other country or to any person other than the authorized end-user or consignee(s), either in their original form or after being incorporated into other end-items, without first obtaining approval from the U.S. Department of State or use of an applicable exemption.”

It’s important to update your automated systems and paperwork to ensure that this new statement begins to appear on all of your company’s ITAR shipments.

Marci Gentry is Sr. Consultant for Export Solutions -- the trade compliance specialists. Follow Marci on Google+.

Posted in ITAR, Export Control Reform Initiative, Best Practices

Comments

Comment by Keith Cox (11.20.2013)

What if the item I am exporting gets incorporated into another item. Am I responsible for the new item and if so, when does my responsibility for the new item end.

Comment by Donna Henry (02.20.2014)

All of the information contradicts the verbiage you are advising.
Effective Oct. 15th 2013
It is being shown as "‘‘These commodities are authorized by the U.S. Government for export only to [country of ultimate destination] for use by [end-user]. They may not be transferred, transshipped on a noncontinuous voyage, or otherwise be disposed of, to any other country or end-user, either in their original form or after being incorporated into other end-items, without the prior written approval of the U.S. Department of State.’’

Comment by Tom Reynolds (02.20.2014)

Donna: You should look at Section 123.9(b) of the ITAR. There, you will see that the statement is different from the one you posted in your comment. It could be that you are looking at a previous version of the ITAR. You need to go to the Federal Register notice from 10/15/2013. Thanks, Tom

Comment by Rob Valenciano (03.13.2014)

I have a question. Is the control statement required on both MAWB and HAWB under a consolidation? I was under the impression that it would only pertain to the AWB in which the ITAR goods were being shipped under directly. If it is required , then what would happen if I had 5 HAWB with different end users / licenses ?

Comment by Tom Reynolds (03.13.2014)

Hi Rob,

The statement is required on each HAWB or MAWB. The Destination Control Statement for ITAR is unique to each end-user and/or licensing authority. Therefore, it should be listed on each HAWB. In addition, it is required on the Commercial Invoice. Hope this helps! Thanks.

Comment by Marci Gentry (04.03.2014)

Here is a link to the Federal register stating the changes.

http://www.gpo.gov/fdsys/pkg/FR-2013-04-16/html/2013-08351.htm

Comment by Kuedi (04.16.2014)

Is this DCS required as well if the item was temporarily imported and returned to the country of origin under a DSP61?

Comment by Gary (05.27.2014)

Great, so how do I find out the license #, exception or approval #?

Comment by john mcclure (08.15.2014)

For [Country of Ultimate Destination] what box on DSP-5 license should i use?
For [End User] what box on license should i use?
Thnak you.

Comment by Tom Reynolds (08.15.2014)

Hi John,
We can't really answer that question without seeing your license. However, most likely, you would be looking at Box 3 and Box 14, respectively.

Thanks,
Tom

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